The online casino business has grown over the years since 2010, and competition has never been tougher. In 2011 when things were relatively new, market capitalization was a little over $20 billion with serious growth prospects. Seven years later, the industry was worth $50 billion with indicators of exponential growth. Since online casinos target the young market made of users that spend over 40% of their time on their smartphones, it is fair to say there is space for everyone.
Even with the intense competition, is it possible for new entrants to capture some market share and make real money from gambling as a business?
How you start will determine, to a large extent, how your business fairs. An online casino needs to be licensed by a known body so that users can truly feel safe when playing its games. A license is essential for two main reasons. One: players can trust their information and monies to be safe since the business is recognized and two: it means management has complied with all the requirements for starting such a business. Malta, the UK Gambling Commission, and Alderney Gambling Control Commission are some of the best –known in the world.
Technology – Mobile Compatibility
You want to know your audience enough to come up with products they will appreciate and feel proud to associate with. Over 60% of the current gambling market is made up of people below 30 who have had technology all their lives. Products that don’t allow them to play at their convenience through their mobile devices will flop.
From the get-go, the casino website should be mobile-compatible to enable users easy and smooth access from anywhere. You also want the games to be accessible through instant-play mode so that players don’t have to download anything that would fill up their mobile memory space. The industry is quite competitive, and so one of the ways to ensure continued support from your market is to innovate even before others. If you are able to capture the youth who are only getting started in gambling, you have the chance to reap more value from their reign as gamers.
Even though online gambling has been legal in most countries for a decade, some countries are yet to allow it. You want to develop products that will be accepted in your niche market, whether Africa, Latin America, or the Americas. The license also has to allow you to operate in these countries.
Knowing your market also means creating catchy opportunities for your clients. For instance, in the review about 5 deposit casino Canada, one can find the best 5 dollar deposit casinos, and this is what people are constantly looking for. Knowing not only your market but your client is something you should always pay attention to in the casino business.
Games are what bring users to a casino, and they will only stay when they find options they can’t find on other sites. Slots are the most popular since they are easy to learn, and most people find them less demanding when staking – with only a few coins, you could play all night. They tend to be the same from one developer to the next, but you can work with a number of them to bring about some differences. That includes features that will certainly separate one developer’s slots from another’s.
The software doesn’t come cheap. Known brands such as MicroGaming and Play’n Go charge anything between €5,000 and €50,000 to license their products. The casino business is capital intensive even when you work with one developer, but when it hits that gains are worth the expenditure.
Aggressive Marketing and Right House Edge
Any successful business starts with an aggressive marketing strategy for its products. For casinos, marketing doesn’t end when you get your market share, but it has to be continually drummed into users. Users want to feel special and so a bonus when they register an account prompts them to tell their circles about your business. Existing users also need to stay motivated through free spins and free money that they can then wager, so the house makes its cut.
One tool for marketing is the house edge. Since the house has to win, you want to select games with just the right house edge. Some table games such as blackjack – from almost every developer – have a 1% house edge, but others as much as 20%. A quick look at house edge using roulette; An English roulette wheel has 37 reels that give a $1 bet 2.7% chances of winning. That is the house edge – 2.7% – and so payout ratio is 97.3%. As a casino owner, you want to work with experts in numbers to get the perfect combination between long-term economic benefit to the business and enough winnings to keep players motivated.
Niche up in Promotions
When planning promotions, it helps to group them in segments. New and existing players should have their categories while highfliers also have a club that rewards them handsomely for spending as much as they do. The business stands a better chance of retaining its users when they are individualized and paid enough attention.
Success is Gradual
Competition is tougher today than, say, 5 years ago, and so you will not accumulate wealth immediately. The growth curve may not be as steep today as it was with fewer entities in the industry, but gradually, with enough capital and a stellar plan, you get there. Where possible, move to countries with little local gambling presence, a young, rich population, and flexible gambling laws. The competition will be easier, and you will slowly establish your business before other companies get the chance to invade this space.