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How to Open an Online Casino: What Do You Need to Know?
Online gambling has always been one of the most lucrative and desirable domains for business owners, regardless of whether they have experience in the field.
To open a successful online casino that will benefit the owner and bring joy to players, a few key steps need attention.
As an online casino software developer and provider, SOFTSWISS is glad to share its experience. We hope our expertise helps future online casino operators avoid common mistakes and start strong.
Key Steps to Starting Your Online Casino Business
One of the most important things to begin with when launching your online casino business is proper planning. Writing a detailed step-by-step business plan for the first year of operation is essential.
Not only does it give you a clear agenda and strategy, but it also helps reduce stress – it is much easier to complete one step at a time and track your progress instead of having to focus on many tasks at once.
Here are four key steps you need to take to launch your own online casino successfully.
Analyse the Online Casino Market
Online gambling has grown significantly. Both sports betting and online casino gambling have become increasingly popular, similar to many other types of online entertainment.
The online gambling landscape offers significant revenue opportunities, even in the face of global economic and political shifts. Online casinos also excel in accessibility compared to land-based casino experiences.
Industry forecasts point to a growing global user base and revenues over time, giving a good glimpse into the iGaming industry's potential and market size.
Acknowledging its promising future, many governments are actively working to regulate and legalise the online gambling sector. For current and aspiring operators in the online casino space, these signals suggest strong, affirmative market growth and expansion.
Even though most online casinos live in the dot-com domain, players are still located physically in specific jurisdictions. Offering your online casino to players via electronic means still falls under certain laws and obligations, which leads to licensing.
Licensing and Legal Aspects
Like brick-and-mortar casinos, online casinos require a licence. If you want to open your own casino, you need to choose a gaming licence. These are issued by countries or jurisdictions. The iGaming community distinguishes between national and international gambling licences.
Each licence has its pros and cons – including cost, application time, and reputation. Timelines can range from a few months to about a year, depending on the jurisdiction.
In recent years, there’s been a noticeable shift away from international licences like Malta or Curacao and toward country-specific regulation.
This change encourages operators to consider adapting their brand and offer to regulated markets.
International licences are adapting to these changes. For example, Curacao has been developing a new regulatory body and overhauling its system to enhance security and compliance, while Malta has strengthened its focus on compliance and responsible gambling.
How do operators choose an online gambling licence? Choosing the right licence for an online casino or sportsbook is about much more than ticking boxes. You need to align the licence with your business's long-term goals, target markets, and growth plans.
Given the industry's current trajectory, relying on a single licence seems less practical. It's crucial to assess risks, strategically plan your brand's journey, and partner with software tech providers that align with the market's specific needs and regulatory landscapes.
At SOFTSWISS, we understand these complexities and offer tailored solutions. The Online Casino Platform comes in several packages:
Turnkey Casino Solution: for operators who already hold licences and certificates, it offers the software, infrastructure, and ongoing iGaming support to launch a fully independent casino.
Crypto Casino Solution: A secure software solution tailored for casinos aiming to engage cryptocurrency audiences.
After selecting your jurisdiction, you’ll need to register a legal entity, open a bank account, and set up agreements with payment system providers to complete the legal and financial infrastructure setup.
Choosing Casino Software
Many technology companies, including SOFTSWISS, develop the software and systems that power an online casino. While searching for a reliable casino software developer, it is wise to evaluate the software based on your business requirements.
Besides providing an attractive casino frontend design and popular games for players, a quality casino product needs more than just great code. A truly robust online casino platform also has to be modular, scalable, and adaptable to different market requirements.
Some of the mandatory casino software modules include:
Content Management System (CMS)
Player account management system (PAM)
Bonus and promotions module
Game management tools
Payment system management interface
Reporting module
Admin role settings
Affiliate management software
Anti-fraud module and systems
Retention email strategy and tools
Regular software and game updates, hosting, and technical support must also be part of the package. Professional suppliers always take full responsibility for technical support after launch.
The software package that includes all of the above components may come with higher upfront costs, but modular software is a long-term investment. As a result, you get a reliable partner ready to support you during the whole project life cycle. Cheaper shortcuts, like one-off casino scripts, often lead to higher expenses later.
Casino Marketing Plan
An effective marketing strategy is an absolute necessity to run a casino. This is where competitor research will be a crucial step. It gives you an overview of leading casino brands, the strategies they use for player acquisition and retention, and what you can do to match or outperform them
Knowing who you’re up against and creating a unique offer that players won’t be able to decline are keys to success. Benchmarking against competitors is extremely useful, and what’s more, it’s free. When planning your budget, focus on promotion, advertising, and brand development using proven best practices.
If a company starting an online casino is operating a land-based gaming business, it might be crucial to bring the existing clients to play online. An integrated marketing strategy across both offline and online brands can be a win-win.
If you already have a background in online marketing, user acquisition, growth marketing, or affiliate marketing, you probably know where to start with your online casino marketing strategy. If not, consider sourcing companies, agencies, and individuals who have that kind of experience and know-how.
Last but not least, think about your future bonus policy and affiliate program. These will drive player acquisition and retention and must not be ignored. And, of course, check if the selected software provides the appropriate technical opportunities to bring your strategy to life.
How Long It Takes to Launch an Online Casino
The time frame for launching an online casino depends on both the business owner and the software provider. On average, it takes a few months for the provider to set up the software and create a unique casino website. This includes setting up the games, adding the bonus policy settings and possible individual features, and designing the look and feel of the brand.
Your website should be informative and visually appealing. Most importantly, it should be easy for visitors to navigate.
The business owner and their team can speed up the launch process by providing timely feedback to the setup team. Clear communication ensures requirements are understood and implemented quickly.
Apart from design and setup, the business owner must also address critical tasks in time, such as:
Obtaining a gaming licence
Opening a corporate bank account and a merchant account
Making agreements with payment system providers
Some online casino software providers also offer a white-label casino solution that covers all these steps. This allows operators to launch quickly and enter the market with less effort.
For iGaming business owners who already hold a licence, the software and hardware infrastructure can be used to launch their online business.
Operating an Online Casino
The secret of the most popular and successful online casino is not just about top-notch design or thousands of games. The best online casinos often start with a simple design and contain 500 games on average. The secret is in a responsible marketing strategy.
The online casino market is extremely competitive. It is very hard to break into, and even harder to take a firm stand. As a rule, a company has to go the extra mile to get ahead of the competition. Below are some of the most important factors for any online casino that is planning long-term success.
Positioning
Build a professional marketing team and develop a clear strategy for your goals and mission. Define how your casino will stand out from the competitors, what unique features it will offer, and how you plan to grow.
Quality Games
You can start your casino with a limited number of game providers, focusing on games built with HTML5 technology. This technology allows users to enjoy rich graphics games and enhance the overall experience of playing casino games on mobile devices.
SOFTSWISS offers casino games integration with content from well-known providers, such as Evolution, Pragmatic Play, Games Global and more. Choose the games that best fit the markets where you plan to operate.
Pre-launch Advertising
Before you start a casino, you need to advertise it to build anticipation. Use all the channels available: affiliate networks, online ads, offline presentations, media publications, etc.
Ongoing Promotional Support
The days of explosive growth with minimal marketing spend are over. In today's market, consistent player acquisition is essential for growth. Operators must implement ongoing promotional strategies to keep players engaged.
Make sure to experiment and see what works best for your player base. Be sure to plan ahead and always try to offer something new to your players.
Player Acquisition, Support, and Retention
Provide reliable support, ideally a 24/7 service, so players always have help available. Make navigation clear and understandable with ‘How to’ sections or FAQs, manuals on how to play the games, and demo versions.
Develop a bonus system, make auctions and entertain and reward your players for their engagement.
Affiliate Partnerships
Develop contacts with affiliate partners who can use their online resources to promote your online casino. Operators use affiliate management software to manage such partner relationships. An affiliate platform is undoubtedly the best tool for expanding your network.
Additional Features
Modern online casinos are often multi-functional platforms that not only offer casino games but also sports betting and other features. Here are some of the most popular additions to consider for your casino platform.
Crypto Casino
Forward-looking online casino software providers offer cryptocurrencies alongside fiat currencies. Payment systems are key to high-quality player service.
Online casino owners worldwide appreciate the advantages of crypto casinos, such as increased player loyalty, fast payment processing, and more.
As an acknowledged crypto casino expert, SOFTSWISS recommends that potential operators take time to understand cryptocurrency, study how crypto gambling works, and test real transactions at existing casinos before launching their own.
Jackpots
Jackpots have always been closely associated with casinos in one way or another, and online casino games are no exception. Players love the chance to win big rewards, and operators love the engagement they drive.
Players get the chance to compete for bonuses, physical prizes, and loyalty points. Running jackpots can be done through custom tournament tools or additional jackpot modules that are integrated with the casino platform.
Some of the advantages of jackpot software implementation include:
Increased player lifetime value
Increased bet amounts
New player acquisition
Existing player retention
Increased revenue
Sports Betting
In the past few years, many online casinos have integrated sports betting into their platforms. The combination is highly effective, as it boosts the overall project performance and greatly increases user engagement.
Integrating a complete sports betting software, such as the SOFTSWISS Sportsbook, allows players to place bets on sports like football, basketball, tennis, hockey, and many more. It also lets them watch live sports broadcasts on your website, get a chance to receive special bonuses, and build loyalty with your brand.
Overall, players are more likely to stay loyal to a platform that meets all of their needs and allows them to do everything in one place – play casino games, win jackpots, and bet on their favourite sports.
How Much Does It Cost to Open and Run an Online Casino?
Once the costs for legal matters, software, and marketing are defined, it’s time to plan your budget. The best option for startups is to set the budget at least for the first year of operation. Experienced companies can define their budget for several years ahead.
Don’t plan your budget after launching your casino website – prepare it in advance. For new operators, setting up a business typically involves higher initial costs compared to seasoned operators.
That’s because existing brands already benefit from an established customer base and a recognisable brand identity, particularly for those transitioning from land-based to online.
For newcomers, this makes financial planning especially important. Before taking significant steps, such as launching a website, it's vital to carefully balance your finances. Profit and loss statements can be a useful starting point. This risk management step ensures a more successful and informed launch.
While there is no simple and definitive answer to the question of how much it costs to launch an online casino, SOFTSWISS has surveyed operators about how they divide their budget.
In general, your expenses will fall under two broad categories: the pre-launch and the post-launch stage expenses.
Pre-launch stage expenses include software purchase and setup (25 to 35%), marketing spend (15 to 20%), and licence acquisition (10 to 30%). This early stage of development requires more attention and more investment.
Post-launch expenses usually focus on marketing and promotion, which may take up around half of the total budget. This ongoing spend is crucial for attracting new players.
Frequently Asked Questions: How to Open Your Own Online Casino
1. How can I figure out if a business like an online casino is right for me?
While the idea of starting an online casino can be appealing, it’s important to stay realistic. The iGaming market is dynamic and holds great potential, but it's also highly competitive. The truth is, not every project survives.
If you're not sure about entering this industry, it may be wise to delay your launch and invest more time in research. Here are some key considerations:
Market Research: Understand the dynamics of the iGaming industry.
Realistic Expectations: The market is promising, but it also comes with its fair share of challenges.
Team and Partnerships: Make sure you have access to an experienced team and reliable partners.
Effective Promotion: Learn about various online marketing strategies that can help promote your project.
Risk Assessment: Be prepared for the high level of competition and possible setbacks.
Embarking on this venture requires a clear view of your budget, experience, and resources. With thorough preparation and a strategic approach, your chances of success in the market grow significantly. Remember, be pragmatically optimistic.
2. Do I need to hire staff?
Absolutely. For efficient project management, your core team should include:
General Manager / Project Owner: Oversees the entire project.
Partner Manager: Nurtures and manages partner relations.
Content Manager: Directs all content-related initiatives.
Marketing Analyst: Studies market trends and casino data to inform marketing strategies.
First Line Support Team: Fundamental for player support.
Retention Manager: Builds player loyalty.
Anti-Fraud Team: Safeguards your casino from fraud.
This basic team structure gives you a strong foundation for a successful launch and management.
3. How do I draw traffic to the online casino?
A traffic acquisition strategy should be multifaceted and can include, but is not limited to:
Search Engine Optimisation (SEO): Improving your website rankings on search engines.
Search Engine Marketing (SEM): Using paid ads to attract visitors.
Affiliate Marketing: Collaborating with affiliates for promotion and broader online reach.
Influencer Marketing: Working with streamers or other personalities to reach a wider audience.
4. Can I use my own server to install the SOFTSWISS platform?
To ensure smooth and stable performance of your online casino, the software platform (backend) always resides on SOFTSWISS servers. However, the website itself (frontend) can be located either on your server or on ours.
5. What payment systems does SOFTSWISS support?
SOFTSWISS online casino solutions support all major payment systems that are currently used worldwide. Our platform integrates with DevCode, which connects to industry leaders like Neteller or Skrill, as well as numerous region-specific payment processors, like Zimpler in Scandinavia or AstroPay in LATAM.
We also support transactions via credit and debit cards (Visa, Mastercard, UnionPay and others). We can integrate any specific payment option on demand.
6. Do you have any demo version of your casino platform?
Definitely. You can contact our managers to request a demo of the games and backend system.
7. What is the payout in casino games that you provide?
For automatic games such as slots, the standard payout, which is the amount returned by the casino to players, is usually set at 95 to 98%. The remaining 2 to 5% is the expected casino advantage. For skill-based games, the payout varies, and the casino's profit per player may be much higher.
8. Is your platform multilingual? How many languages are supported?
By default, the SOFTSWISS software is delivered in English, and is also localised into more than 15 other languages, including German, Spanish, Portuguese, Swedish, Finnish, Russian, Chinese, Japanese, Turkish, and Indonesian. More languages are added regularly. Casino operators should always translate website content.
9. Can you guarantee the reliability of your software?
Our product is certified by iTechLabs, one of the most respected software certifying agencies in the world. The software is based on Ruby-on-Rails and Go, technologies known for security and scalability, as proven by partners worldwide.
Launching Your Online Casino With SOFTSWISS
SOFTSWISS specialises in developing innovative software for online casinos, providing a wide range of solutions from a powerful Casino Platform, games hub, affiliate marketing software, and 24/7 support.
SOFTSWISS is all about:
Expertise: Over 15 years of experience in iGaming, supporting hundreds of gambling websites worldwide.
Service: Award-winning account management, recognised for providing exceptional customer support.
Innovation: A pioneer in crypto betting.
Security: Focus on cybersecurity and data protection; ISO 27001 compliant.
The SOFTSWISS Casino Platform includes a variety of modules, features, integrations, and licence options. It also offers a dedicated back office with innovative technologies that give operators complete control over all areas of their online casino business. The platform integrates seamlessly with the SOFTSWISS Sportsbook, Game Aggregator, and Jackpot Aggregator, which can make your online casino stand out among competitors.
As a Final Note
Managing an online casino is hard work, but with all legal and financial issues resolved promptly, quality software chosen, and a strong marketing strategy in place, it can be a successful and encouraging experience both for the operators and their players.
By following the steps outlined above, operators can build a sustainable online casino, attract loyal players, and stay competitive in a growing market. Good luck on your iGaming journey!