The Internet era has brought us tonnes of quality-of-life improvements. Million upon millions of physical services has been slowly converted into online form for accessibility and convenience. Online gaming is easily one of the most profitable businesses worldwide. Recently, it’s morphed into one of the leading internet-based industries, with online games raking in billions in annual revenue.
The success of the industry comes from the storied history of regular technological disruptions and innovation and inflexible demands. There’s simply never been a more prime time to get into the business than now. The future remains bright for the market, with experts projecting revenues to hit $117 billion in the next half a decade—that’s more than twice the $58 billion revenue from 2018.
Method of Operation
There are two ways of getting into the online game business. You can either be onboarded as an online game affiliate or an iGaming operator.
Going in as the latter, you can expect high starting costs, with legal and political boxes to check. However, all your hard work yields profit over time as it grows into a player’s favourite.
On the other hand, starting as an online game affiliate is much easier and more cost-effective. In fact, you’ll likely earn more than you invest, so long as you have the required skills, experience, and platform to market to internet users. All you need to know about casino affiliate programs will be summarized below, including how it works and eligibility.
Some online game elements are imperative to your success and the acceptance of your platform as a reputable iGaming provider.
Affiliate marketing is a crucial option when launching an online game business. Affiliates are typically influencers like streamers, bloggers, or even popular players. They help curate a large following of your platform, funneling their audiences towards you for a commission. In turn, you get more players, greater visibility, and steady lead conversion.
You need a license to own and operate an online casino in any country. The best part of obtaining a license is that you can get it from providers within and outside your region. On the cheaper end, obtaining a license could set you back between $15,000 to $20,000, while pricier options tend to start from $40,000. The more reputable your licensing provider is, the more players you’re bound to attract. Due to their history, older, European gambling licensing jurisdictions are often considered the best.
It isn’t an online gaming site without a website. You want to design something simple yet chic, minimalist yet stunning. Avoid sophisticated designs that warrant unnecessary graphics. Players prefer faster-loading sites; so, it’s in your best interest to hire a professional and nail down a fluid website experience. You also want to create a smooth UI experience, avoiding bloatware that may give wrong impressions.
Content and Partnerships
Online gaming sites are judged based on the type, range, and quality of the games. If you want to amass many players, content diversity is a crucial detail you mustn’t overlook. You want to target the most in-demand and popular games in genres such as baccarat, blackjack, bingo, slots, roulette, poker, live casino, etcetera.
To get these contents, you need to partner with the right software developers. Target ones that create games and platforms for unique products, customizable to your taste. Alternatively, you can consider B2B companies that provide tool packages containing gaming content from other vendors.
The payment options you offer on your platform contribute towards customer retention. You want users to effortlessly deposit and withdraw funds from the platform. So, look to partner with payment providers from traditional services like banks and credit and debit card companies to alternative payment methods like PayPal, e-wallets, etcetera.
The Operating Cost
There isn’t a one-size-fits-all answer for the monetary requirements to set up an online gaming website. Every choice you make at each step determines whether your gross total would be higher or lower. Designing from scratch doubtlessly costs more than purchasing a template and filling it out. Additionally, purchasing a game package containing five software developers will cost more than partnering with a single developer, and so on.
Also, expenses will come from before and after the launch. The latter involves marketing, remunerations, software, start-up costs, licensing, etcetera, making it the more expensive phase of development. The post-launch state is more maintenance than development, so it’s less costly and typically pays for itself through revenue. Of course, at this point, it means the website has been finalized and begins operations successfully. All in all, marketing is the most expensive cost when opening and running an online gaming website.