How to Start an Online Casino

Co-authored by wikiHow Staff

Last Updated: January 16, 2023 References Approved

Opening up an online casino is an attractive business idea for many entrepreneurs. The online gambling market is constantly growing and moves billions of dollars a year, but how do you get in on the action? We’ve put together answers to some of the most common questions people have about starting an online gambling business.

Question 1 of 6:

How does an online casino work?

Users pay to play a variety of digital casino games. In order to provide users with the games they want, partner with different casino game developers. Try to offer a large variety of games to attract users, including a few of the most popular ones like slots, keno, roulette, scratch cards, poker, blackjack, and other card games.^{[1]
X
Research source}
- You can either partner directly with game developers to offer their casino games, or buy a package of games from different developers from a B2B provider.
- The easiest way to receive payments from customers is by accepting credit card payments. You may also choose to accept other payment methods, such as cryptocurrencies. Casino game providers often include payment processing software with the games.

Question 2 of 6:

Is it legal to start an online casino?

Yes, as long as you obtain an online gaming license. The license doesn’t have to be from the country you live in. It can be from any country where online gambling is legal. Buy a license from an offshore provider like Curacao, Gibraltar, or Alderney for a cheaper option, or buy a German, Swiss, or UK license if you want one with a higher status.^{[2]
X
Research source}
- Cheaper licenses cost in the range of $15,000-$20,000 and more expensive options cost at least $40,000.
- Having a more reputable license can help attract more players. Licenses from European countries tend to be the most reputable ones, as these are the oldest gambling licensing jurisdictions.
- Any gambling license is legit as long as it is from an actual gambling licensing jurisdiction. You can look up a full list of these jurisdictions around the world online.
- Other countries you can buy a cheaper offshore license from including Costa Rica and Panama, Curacao. The last is very popular for online bitcoin casinos.
- Note that buying a gaming license from a certain country doesn’t mean that only people in that country can access your online casino. People from anywhere in the world can still play games on your site.

Question 3 of 6:

How much does it cost to start an online casino?

1
It costs at least a few hundred thousand dollars to get started. Startup costs include a gaming license, game software, and web/app development. The costs for these things vary depending on where you pay for them. Keep in mind that this is just to get your casino up and running and does not include your monthly expenses.^{[3]
X
Research source}
- Expect to pay at least $15,000 on a gaming license.
- The average price for a casino game software package is about $200,000-$300,000.
- Web development might cost you $1,000-$5000 or more.
2
Your ongoing expenses may run from $60,000-$175,000 a month. This covers staff, including a customer service team, marketing and advertising, and other expenses such as payment coverage. This helps attract and retain players as well as ensure you can pay them when they win casino games on your site.^{[4]
X
Research source}
- The cost of staff, including a customer service team, might be around $250,000 a year. However, you may be able to outsource customer service to cut costs.
- Marketing and advertising can cost anywhere from $20,000-$100,000 a month or more. This includes payments for SEO and SEM services as well as affiliate marketing.
- Hire an outsourced payment processor to cover payments to players for you, so you don’t have to deposit all the funds to cover payments. These services cost in the range of $20,000-$50,000 a month.

Question 4 of 6:

Do online casinos make money?

Yes, the biggest ones report annual revenues of billions of dollars. This doesn’t mean your online casino is going to make you a millionaire right away. The top online casinos have been around for a long time and have tens of thousands of employees and huge marketing budgets. Advertise and offer incentives for users to find and choose your casino in order to start making money from it.^{[5]
X
Research source}
- Having a large library of games is a good way to attract new users to your online casino. Offering things like welcome bonuses is another good incentive for people to sign up for your casino.
- A Google Adwords campaign is a cost-effective way to advertise your casino online. Paying an SEO expert to optimize your site and help it show up in search results is another great strategy.
- It might take 2 years or longer for your online casino to break even.

Question 5 of 6:

What marketing strategies are best to use for this business?

1
Bonuses. Bonuses are actively used by online casino platforms to attract and retain players. The main advantage of this strategy is the typical variety of bonuses that you can offer to your audience: welcome bonuses, deposit bonuses, free spins, free game chips, free bets, loyalty bonuses, or reload bonuses. The list depends on your business imagination and the expediency of those or other steps towards attracting players.
2
Affiliate marketing. Affiliate marketing is one of the important strategies of promotion of online casinos. Affiliates can be bloggers or streamers, develop a large following and then direct their audience towards an online casino for a commission.
3
Loyalty and VIP programs. Gamers who often make big bets are very important for gambling platforms and operators should care about them. They have to offer their clients VIP programs. These are tiered loyalty programs that offer increasing rewards, perks as users climb the levels of the program.^{[6]
X
Research source}

Question 6 of 6:

How do you design an online casino site?

Make the site very user-friendly. Try gambling on some different established sites to see how they work and develop a vision for your site. Avoid complicated and unnecessary graphics that can overload your site and make it less user-friendly. Hire a professional web developer to build the site for you.^{[7]
X
Research source}
- The appearance of your site is very important for attracting users, so always get it professionally built. If your site gives potential new users a bad first impression, chances are they’re not going to sign up.^{[8]
  X
  Research source}

Community Q&A

Question

Do I need a casino license in Fresno, CA?

Community Answer

All countries, states and cities require gambling licenses. Try doing a quick web search to find out how to obtain one in your jurisdiction.
Question

How do I pay when someone bets and wins money online?

Chateauxc

Community Answer

The most popular payment methods for online casinos is Skrill, NETeller and credit card.
Question

From which countries can I visit a casino?

Chateauxc

Community Answer

You can visit any casino from any country, although this does not mean you will be able to play. If your card origin country or your location is on a blacklist, you will be blocked at the payment level. In some instances, you will be able to make a payment, but should you win, you may have to think about how you are going to get your hands on that money.