Pros and Cons of Becoming an Online Casino Investor
The constantly growing iGaming business has become a valuable opportunity for investors in the past years. An online casino with an attractive design, entertaining games and a solid marketing strategy can help entrepreneurs climb rapidly on the ladder of iGaming success. The expansion of online casinos is a great way for investors to potentially earn high returns, but it also comes with risks.
Before purchasing online casino games and software, like in any other business, every investor needs to understand both benefits and risks.
Rapidly growing industry
The online casino industry is booming – the market has generated a whopping $81.08 billion in 2022 and it is expected to reach $117 billion by 2028. The demand for new and improved online casino products is giving casino investors the opportunity to tap into the pot of gold which the casino industry has become.
The growing adoption of smartphones is one of the driving elements for the growth of the casino market. Advancements in technology allow users to enjoy an immersive and interactive experience from anywhere. Smartphones adoption is also growing around the world, thanks to the availability of low-cost smartphones during the past years.
New Markets Prepare Regulatory Frameworks for iGaming
To create a safe environment for online casino users, leaders from different countries around the world are working to create regulatory systems that will embrace online gambling. Brazil and Hungary are some of the countries who set their licensing conditions in 2022, while enormous markets such as India and US States (such as Vermont) are already publishing drafts to create the necessary rules for allowing local online gambling.
Large Potential Audience
Online gambling is a worldwide phenomenon – whether it’s regulated or not. Investors who want to buy online casino games and software can reach an enormous number of clients, depending on their business model.
While some licenses only allow online casinos to operate in their local jurisdictions, other licenses, such as offshore ones (Costa Rica or Curacao are just two examples), can target players from a multitude of locations. As an example, with a Curacao online gambling license, casino investors can accept players from all countries, as long as they are not specifically prohibited by the regulatory frameworks in some countries.
Possibility of Making a Small Investment Initially
An online gambling business investment can take a variety of forms. Since cryptocurrencies appeared, we’ve seen websites that made fortunes with just one game. For online casino, an initial investment would include purchasing the software, a games package, then doing the marketing for the online casino.
You can find different prices from a variety of providers, but some of them sometimes offer great starter package discounts. If you want to start an online casino with CasinoWebScripts, contact us for a special package with discounts for first-time buyers.
Easily accessible and convenient business
Online casinos allow investors to easily start and monitor their gaming business from anywhere in the world. Since you don’t have any stocks, all your employees can work online, and you can run your casino business while sunbathing in Maldives, it’s a great opportunity if you’re an entrepreneur who enjoys the freedom of owning an online-only business.
The online gambling industry is highly competitive, and new entrants might have a hard time entering the market and establishing a solid brand. More than that, there are many reputable land-based casinos which decide to expand into the online space – that means competition is getting fiercer.
Before purchasing online casino software and games, as an investor, you must evaluate the market and analyze if you have the right budget and a competent team to enter the market with a bang and constantly grow your business, without becoming irrelevant among the many online casinos that are now available.
Lengthy Licensing Process in Some Jurisdictions
Most of the time, if you want to start a gambling business, you will need a license. Casino games can be used for non-license solutions, such as sweepstakes websites, but this is an exception. The online gambling industry is heavily regulated and, in some countries, obtaining a license can be costly and time-consuming.
There are many steps that you have to follow, laws to abide to, tests to pass, especially for valuable licenses such as the one from the UK or from the Philippines.
Fluctuating Gaming Laws in Some Countries
While you think that today you can offer online casino games to players from a specific country where gambling regulation is in a grey area, you might wake up one day and see that the government has decided to create a state monopoly or to only allow local, licensed operators to provide online casino services in the country.
This would result in a loss of many clients, so it’s a risk that investors need to take into consideration while targeting clients from specific countries.
Online casinos handle and carry large amounts of sensitive financial information and personal data, which makes them a target for cyberattacks. Hackers might attempt to steal this information from online casinos, which can come with serious consequences for both the casino and the players.
A cyberattack impacts the casino’s reputation and revenue. As an online casino investor, it is important to take action against potential threats and make sure that security measures are in place.
Investing in the online casino industry can be a very lucrative opportunity, with many benefits and potential chances for success. Before making the decision to invest in an online casino, entrepreneurs should take into consideration both benefits and risks, thoroughly research the market, create a safe environment for players, evaluate their budget and casino providers’ products, invest in marketing and do their best start on the right foot.
The first step towards starting an online casino which operates with real money is obtaining an online casino license. The products that we sell might require a casino/gambling license depending on the jurisdiction in which...