The worldwide web provides countless forms of entertainment and online gambling is the second most popular form of entertainment on the internet after pornography, with the total global revenue amounted to US $ 29.95 billion just in 2012. In this context, operating an online casino can be one of the most profitable businesses on the web with huge growth potential in the upcoming years.
For an investor that never had any contact with the gambling industry, getting started into the business might look scary. In addition you can’t start an online gambling business if you’re not properly funded. Another important factor is the U.S. legislation concerning regulated online gaming (Delaware, Nevada and New Jersey passed the legislation in 2013). It is understandable that today the U.S only accounts for around 11% of global online gambling (casino, bingo, poker) gross win whereas Europe accounts for just over 54%. The situation concerning online gambling in the U.S., keeps a lot of investors away.
In regards to products: sports betting accounts for 53% (€11.5bn) of online gambling gross win in 2012, followed by casino at 25.4% (€5.5bn), poker at 14.2% (€3.1bn), and bingo at 7.4% (€1.6bn).
So where do you start? As an investor you might want to ask yourself what form of online gambling you want to provide: sportsbook, casino games, poker network, financial betting, live dealer games, horse racing, bingo and so on. Once you have decided what form of online gambling you want your business to provide, you will need a gambling license, software to handle all gambling activities, a website and a strong marketing strategy in order to attract new customers. Those are just the main items on your shopping list and not very cheap.
In the following posts I will discuss each item and what are the requirements for a successful online gambling business.