How to Launch an Online Casino?

Posted by Harry Kane on Tuesday, February 9, 2021

If you have an entrepreneurial mindset, it stands to reason that you should be constantly looking for opportunities and identifying viable gaps in various marketplaces.

With this in mind, the iGaming industry continues to shine like a beacon on the existing entrepreneurial landscape, with this having grown by 8.1% in the year ending March 2020 to achieve a cumulative value of $5.7 billion.

But what steps can you take to launch an online casino within this space, and just how easy is this endeavour?

1. Start by Learning the Industry

Let’s start with the basics as you must understand the fundamentals of online gambling and the underlying industry before you attempt to make your mark within this space.

These include basic considerations such as the structure of the market, from the role of government legislation and the official regulatory body to the core differences between online, multi-channel and brick-and-mortar operators.

The last point is particularly important, as this will help you to understand the precise business model that you want to follow and how this will translate into profitability.

Overall, these questions enable you to develop a detailed and viable business plan for operating your new casino platform, which can in turn create an opportunity to secure funding and introduce valuable partners into the business.

Another key focus should be the type of online casino verticals and games available, particularly those that are the most popular amongst players. Take slot games, for example, which now account for more than two-thirds of the online GGY in the UK and are being produced by a huge number of established and independent developers.

2. Get to Know Your Competition

As part of the process of gaining a clear understanding of the market as a whole, the next step is to monitor your competition and understand exactly how they’re operating.

Of course, it’s better to do this once you’ve settled on your chosen business model and the channels through which you want to engage customers, as this will help you to identify a shortlist of operators who are comparable.

When looking at your competition and attempting to derive viable lessons, your main area of focus should be marketing, particularly the ways in which they look to engage customers online.

For example, it makes sense to uncover the keywords that your competitors are targeting as part of their digital marketing campaigns, while also analysing their respective rankings against these keywords may help to inform your own efforts. We’d also recommend reviewing the type of content that your competitors are creating on a regular basis, while monitoring social activity and the most shared content over an extended period of time.

We’ll have a little more on this later, but there’s doubt that the highly competitive nature of the iGaming market requires a detailed and forensic approach to monitoring those around you.

3. Choose the Very Best Casino Games

We’ve already spoken about how slots have grown to dominate the iGaming GGY, but it’s important not to become solely preoccupied with this vertical when launching a new casino.

The reason for this is simple as versatility is central to creating a broad and diverse platform that can successfully appeal to both casual and experienced players alike. Remember, while casual players will comprise the vast majority of your customer base, seasoned gamblers and high-rollers will account for most of your online revenues.

When creating a games library, it’s also better to start small and focus on quality over quantity before looking to scale your offering organically over time.

Ensuring that your players can access the most popular online slots and a collection of live casino games certainly represents an outstanding starting point, and from here you can monitor the behaviour of your customers and look to adapt the library on offer in real-time.

4. What are the Legal Requirements?

The UK has some of the most stringent regulatory iGaming measures in place anywhere in the world, while we’ve also seen an increased level of legislative interference from the government since 2018.

Not only are these rules relatively tough and focused clearly on safeguarding potentially vulnerable gamblers, but they’re also constantly changing in line with player behaviour and the way in which individuals access iGaming content.

The first step is to apply for a license from the UK Gambling Commission (UKGC), which enables you to access the UK market and legally sell your products and verticals to individuals nationwide. The regulator may well introduce a full licensing review in the near-term, so it’s also important to follow this to develop an understanding of your obligations as a new operator.

If you want to operate in the UK but establish a base outside of these shores, you’ll also need to comprehend the laws surrounding this and the additional taxation (such as the Remote Gaming Duty) that you’ll be required to pay.

It’s also important to invest in compliance over time, so that your business is always adhering to the rules and taking proactive steps to safeguard your customers.

5. Market Yourself Successfully

We’ve already spoken about the importance of monitoring your competitors in terms of how they market their brand, and one of the main benefits of this is that it will allow you to develop your own successful marketing strategy.

Make no mistake; successful marketing is crucial to any ambitious venture, and it makes sense to follow (and in some instances, replicate) the techniques used by others who have already blazed a trail in this respect.

Your campaign should also be focused on core demographics and targeted geographical regions. In simple terms, this means identifying viable local, national and international markets, depending on the size and scale of your venture and initial investment levels.

Social media marketing should also be central to your campaign in the modern age, with platforms such as Twitter, Instagram and Facebook attracting a huge following and providing captive audiences for you to target in real-time.

Of course, you’ll need to create a social media campaign that’s tailored exactly to your brand, which means identifying the precise platforms that best enable you to target your chosen audience.