Popularity of online gambling business
According to world statistics, online gambling is considered to be one of the fastest growing industries of business. During the past 15 years this industry has been showing steady growth. At the moment, the market volume of online gambling exceeds $50 billion.
Reasons for such popularity are as follows:
- Accessibility. Gamblers from all around the world can refer to the services of gambling websites due to ubiquity of the World Wide Web. If an online casino is well-designed, user-friendly, provides a wide range of games to choose from, has a swiftly functioning payment system, then it’s more likely than not that foreign gamblers might turn into regular visitors of such a casino.
- Passion for gambling. People have always been passionate about games of chance and it seems that they will always be so, which means that gambling businesses will continue flourishing.
The latest gaming software. It is a very important component of a successful business. There are thousands of gaming websites that actually do not meet the standards of quality because they try to save money by making use of cheap scripts and free gaming software of the first generation with primitive design and visual effects.
Such websites are very popular among beginners and aspiring entrepreneurs who do not take into account contemporary market trends or legal regulations, as long as their only wish is to make money as soon as possible. Usually, such resources function until the moment they get closed up by regulatory bodies. Professional gambling business functions in a way different manner.
How much can you earn from your online casino?
The answer to this question is pretty vague – starting from a dollar up to hundreds of thousands per month. Your revenue directly depends upon your expenses connected with development of your online casino and efforts applied to promotion of your online resource.
Local gambling markets predetermine the level of your expenses, as well as the latest gaming software you use, followed by requirements of the target audience. At the initial stage you may expect significant expenses, however, in the long run this type of business turns out to be very profitable.
Operators shouldn’t be perplexed by big amounts of payoffs to gamblers during the first months of operation – all expenses will turn into revenues in the near future. Online resources giving away significant wins will attract new clients and win their trust.
Additionally, the level of your revenues is affected by functioning of your customer support service, its ability to get on well with people, react quickly to various requests and troubleshoot ongoing problems. You should also take into account the fact that an ineffective marketing campaign might cause problems with attracting new audiences.
If online casinos start their functioning together with a group of professionals providing consultancy services regarding running of gambling businesses, in a couple of months such casinos have all chances to win trust of gamblers, due to seamlessly functioning latest gaming software,steady traffic and income.
The company CASEXE can name a couple of illustrious cases proving the fact that online gambling businesses are truly profitable. For illustrative purposes we might take two cases – applicable to CIS market and the market of Europe.
The cost of turnkey online casinos for CIS based on competitivesoftware and backed by a license issued by one of the prestigious jurisdictions provided by CASEXE, doesn’t exceed $50 thousand. At this price customers get the latest gaming software within a catalogue of already integrated games supplemented by a whole variety of payment systems.
However, development of an online casino is only one aspect of the question. In order to make your clients find out about your casino, you should run a couple of marketing campaigns aimed at popularization and promotion of your gambling resource. Marketing and promotion campaigns will cost you not less than $5 thousand per month. After the whole campaign is over, you will have not less than 1 thousand of active gamblers regularly placing bets on your resource.
Effective strategies aimed at retaining target audiences within the help of all possible marketing tools, such as bonuses, affiliate programs, referrals, loyalty programs, gifts, promo campaigns, special offers and etc. will bring your online casino not less than 20 thousand of dollars per month during a couple of quarters of your operation.
As for the European market, average expenses on development of a turnkey online casino, together with a license and latest gaming software based on a platform provided by CASEXE, will cost you a bit more due to specific characteristics of running gambling businesses in Europe. The average price makes up around $70 thousand. Promotion of the said resource will take you not less than a half a year due to high competition on the market, while advertisement will cost you around $5 thousand per month.
In 6 months of conscientious business functioning online casinos start bringing not less than $100 thousand per month (GGR). All of these factors are tightly connected with the scope of the European market, number of potential gamblers, as well as deposit rates that usually 5-7 times exceed average bets of gamblers from CIS.
You may benefit greatly from an online casino bringing you big profits, however, you should remember that your revenues depend directly upon your investments, while you success is predetermined by the following factors:
- Compliance with regulations of local markets
- Target audiences and traffic
- Dynamics of the gambling resource – constant development according to the current trends
- Transparency of business and sound reputation.