Did you know that the online gambling business is currently one of the fastest growing business categories in the world? The popularity of online games is increasing rapidly and this year has seen significant growth in Europe and Asia. In China and Malaysia, there are twice as many online players as there are Internet shoppers. About 43% of Chinese internet users play online, while only 16% report shopping online.
Revenue in the online gaming business increased from just $ 800 million to over $ 2 billion in 1999! By 2010, the online gaming industry is estimated to exceed $ 16 billion in revenue. Andrew Burnett, an analyst at London-based Merrill Lynch, says online gambling could generate more than $ 150 billion in revenue by 2015.
Until recently, small entrepreneurs had no chance to enter the gaming industry due to huge capital investments, gambling license acquisitions, and legal red tape. The Internet removed all obstacles. Now you can own and promote your own online casino, sports betting, and multiplayer poker room gaming businesses and generate income you’ve only dreamed of.
There are 3 ways to start an online gaming business:
1) More expensive – Design and implement all the gaming software for an online casino, sportsbook, and multiplayer poker room that could cost you millions of US dollars. You will also need to obtain a gaming license to run your online gaming business, which requires approval from most governments. However, you will have full control of your gambling site and complete knowledge of the source code of your gambling software. Also, no royalties are paid to a gaming software development company.
2) Average – Become a licensee of an online gambling software provider. This is a much less expensive option for starting an online gambling business and you will receive all the gaming software and sometimes even the necessary equipment. It is also the most popular choice for both land-based licensed establishments and entrepreneurs. Costs range from $ 30,000 to $ 350,000. Average license fees are around $ 150,000 (this generally includes marketing costs). In most cases, a royalty is paid to the gaming software provider as a percentage of the monthly “take” or “fall” (gross profit). Usually the gambling software provider has payment processing (merchant account providers) already set up for a completely turnkey operation.
3) More affordable: Become a sub-licensee of an existing licensee. This is the least expensive option for starting an online gambling business. Costs range from $ 5,000 to $ 60,000. The sub-licensee is responsible for all marketing and receives a lower percentage than a full licensee (2), because the royalties paid to the licensee are much higher.
To legally operate online gambling businesses, online casino and poker room owners turn to sovereign governments in countries that allow online gambling and issue licenses for gambling operations. Casinos and poker rooms are registered as foreign gambling operations, and in turn, the respective countries earn significant license fees and tax revenue.
As use of the Internet spreads around the world, the online gambling business will continue to be one of the most profitable online business opportunities of the 21st century.