Table of Content
(504 views)
Introduction
The iGaming industry has experienced a meteoric growth over the last decade, being one of the most revenue-generating industries of the world economy. With the newest technology, improved penetration of the internet, and the rising trend in online gambling, opportunities for businesspeople within the industry have never been more promising. However, as with any opportunities, there are accompanying great difficulties, and therefore the newest entrants to the market should have a clear strategy for developing a successful iGaming business.
We walk you through the necessary steps of opening an iGaming business in this blog, from business and market planning to selecting the right software provider and launching your platform.
Understanding the iGaming Industry
What is iGaming?
iGaming, or internet gaming, is the act of playing or betting online for real money. The market includes a wide range of games and activities that entail:
- Online Casinos: Sites with computer versions of the classic casino games such as slots, blackjack, roulette, and poker.
- Sports Betting: Football, basketball, horse racing, etc. betting.
- Poker: Internet poker rooms where one can play such games as Texas Hold'em, Omaha, and Seven Card Stud.
- Bingo: Online versions of popular bingo, occasionally with variations and social features.
- Esports Betting: Wagering on professional video game competitions, a market that has developed very rapidly due to the increasing popularity of esports.
The iGaming market has developed to become an international phenomenon, driven by advances in mobile technology, broadband internet, and creative gaming software.
Global Growth of the iGaming Industry
The iGaming sector has grown tremendously in the recent past, with revenue estimates showing that the industry will continue growing at an accelerated rate. The international iGaming market is estimated to hit over $127 billion by 2027, recording a compound annual growth rate of 11.5%, as per latest research.
The increase in the use of mobile devices and the popularity of esports has served to increase the popularity of iGaming. Online casinos have been in a position to capitalize on a more interactive experience with advancements in virtual reality (VR) and live dealer casino games.
Opportunities and Challenges
Starting an iGaming company has unique advantages including access to a rapidly expanding market, provision of diversified revenue streams, and taking advantage of the global popularity of online gaming. It is not risk-free. The company is highly competitive, and at times it becomes a challenge to integrate regulatory requirements and technological developments.
Key Takeaways:
- iGaming is comprised of sportsbook betting, online games, poker, bingo, and esports betting.
- iGaming's market is expanding at a fast rate with the driving force of technological growth.
- A lot of opportunities for expansion are present, but entrepreneurs have to be prepared to work through complicated regulation and fierce competition.
Step 1: Conducting Market Research
Before any iGaming company can be opened, thorough market research must be conducted. This will guide your move on target markets, local preferences, competition, and local laws.
Determining Target Audiences and Local Preferences
You need to know your players and what they want. For instance, sports betting can find demand in European markets, while Asian markets can have a demand for casino games or online poker. Demographic and psychographic research will tell you the payment method, the games, and the advertising strategy you must pursue.
Analyzing Competitors
It is required to do a deep analysis of the competitive environment to determine gaps in the market and spaces where you can differentiate yourself. Check other operators in your space, what they offer, their player engagement strategy, and marketing efforts. This will enable you to establish a competitive business model that differentiates you from others.
Knowing Local Regulations
Perhaps the most challenging part of the iGaming business is complying with local law and regulation. Gambling laws vary widely from nation to nation, and even from region to region within a nation. For instance, since gambling is legal and rightly regulated in the UK and Malta, it is prohibited or highly restricted elsewhere.
It's essential to be cognizant of licensing issues, an aspect we will address in the next subsection. Ensure you know the law of protection of players' data, taking payments, and fair gaming for where you will be trading.
Key Takeaways
- Research a bit so that you understand who you are selling to and what they desire.
- Conduct competitor research in an attempt to discover opportunities.
- Be compliant with local law and licensing needs.
Step 2: Developing a Business Plan
After conducting market research, it is now time to create a business plan. This will act as a guide for your iGaming business and help attract investors or lenders.
Business Model
Some business models to look at for entering the iGaming space:
- White-Label Solutions: Turnkey, ready-to-go platforms that may be branded and customized. They are an economical solution but limit control over features and functionality.
- Turnkey Platforms: These platforms are the same as white-label solutions but provide more flexibility and customization.
- Custom Development: When you have the resources and funds, you can create a totally custom platform that is designed to meet your needs. This is the most costly option but gives you complete control over all aspects of the business.
Revenue Streams
Understanding your sources of income is most important in budgeting and forecasting. There are some usual revenue models used in iGaming:
- House Edge: An intrinsic advantage for the casino or sportsbook. For instance, in blackjack, the house edge ensures that the casino will have a long-term margin of profit.
- Affiliate Marketing: Most iGaming operators are working with affiliates who drive traffic and players to their portals for a loss-pool commission.
- In-Game Purchases: Players in internet poker or casino games spend money to purchase special features, purchase virtual chips, or access special content.
Budgeting
It is critical to approximate the expenses of starting and maintaining an iGaming platform. These involve software development costs, licensing costs, marketing costs, and operational costs such as payment processing and customer support.
Marketing Strategy
An efficacious marketing approach is critical to win over and retain players. Your strategy must have player acquisition tactics, retention plans, and brand positioning. Shift your focus to creating a brand of trust, a brand which players will rely on, and promotions and bonuses that are worth pursuing, with an incredible customer experience.
Key Takeaways
- Select a proper business model (white-label, turnkey, or custom development) depending on your budget and goals.
- Identify some source of revenues like house edge, affiliate marketing, and in-game purchases.
- Develop an extensive marketing plan to get and retain players.
Step 3: Selecting the Right Software Provider
Your chosen software will determine the quality and success of your iGaming company. You need to get into a good partnership with an adequate iGaming software provider that can provide you with a secure, scalable, and varied solution.
Criteria for Selecting a Software Provider
- Game Range: Confirm that the supplier provides a reasonable number of quality games, including high-ranking slots, table games, poker, and live dealer.
- Platform Scalability: The platform must be scalable to the expansion of your business, handling more traffic and introducing new features with no problem.
- Payment Support: Ensure the platform supports a proper payment set, including credit cards, e-wallets, and cryptocurrencies.
- Security Features: Highest priority to robust encryption and anti-fraud features are assigned in safeguarding player information and preventing fraud and cheating.
A very highly regarded software supplier is AIS Technolabs, with its adaptable iGaming products. They offer full ownership of the platform, no revenue equity, and third-party game and payment gateway addition, making them the ideal choice for companies that would like to own the platform entirely.
Key Takeaways
- Select a software provider that provides numerous games, scalability, secure payment methods, and strong security features.
- Look for providers such as AIS Technolabs for bespoke solutions and complete platform ownership.
Step 4: Obtaining Necessary Licenses and Ensuring Compliance
Buying the correct gambling licenses is paramount in running an iGaming site that undergoes legitimate and legal operation. This holds your site in check, secure, and in compliance with local law.
Gambling Licenses
Some of the most well-established and well-known gambling jurisdictions and licensing authorities are as follows:
- Malta Gaming Authority (MGA): One of the better European regulators, issuing respected and industry-wide known licenses.
- UK Gambling Commission: One of the stricter of all the regulators, ensuring protection for the consumer and ensuring fairness.
- Curacao eGaming: A less stringent type of license with less expensive fees and faster approval, which is generally preferred by operators wishing for these.
Adherence to KYC and AML Laws
For them to be legally and morally in business, iGaming websites must meet Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. The regulations prevent under-age gambling, money laundering, and fraud.
Data Protection and GDPR
Since it is a site dealing with player and financial data, you have to comply with the General Data Protection Regulation (GDPR) in the European Union alongside other data protection legislations across the globe. It consists of gathering the consent of the users, protecting the data, and giving clarity on use of the player data.
Key Takeaways
- Get a gaming license from a legitimate jurisdiction such as MGA, UKGC, or Curacao.
- Follow KYC, AML, and GDPR to safeguard your players and business.
Step 5: Designing and Developing the Platform
A user-friendly, intuitive platform is a major player acquisition and retention factor. It should be nicely designed, responsive, and user-friendly on various devices.
User Experience (UX) Design
Your site's look and feel should give importance to the quality of user experience. The design should be simple, games accessible, and the navigation should be intuitive in general. Mobile friendliness is also very important because most online gaming occurs on mobile devices.
Key Features to Implement
- Live Dealer Games: A live dealer game adds an extra layer of immersion to the players.
- Mobile Compatibility: Design your site responsive and easy on mobile platforms.
- Multilingual Support: Welcome global players onto your site with the provision of various languages and localized content.
Quality Assurance (QA)
In-depth testing must be conducted to make the platform smooth. Test for bugs, glitches, and compatibility to ensure a bug-free experience for customers.
Key Takeaways
- Ease-of-use design must be paramount for interface, mobile usability, and live dealer functionality.
- Perform intensive QA testing to guarantee platform stability.
Step 6: Implementing Payment Solutions
Offering different safe, quick, and easy payment options is important for retention and smooth transactions.
Payment Options
Use the most accepted payment methods like credit cards, e-wallets, bank transfers, and cryptocurrencies to enable a global player base. Offer support for numerous currencies to entice foreign players.
Chargeback Prevention and Fraud Protection
Use advanced fraud detection software to watch for suspicious activity and avoid chargebacks. A robust fraud defense system will prevent your business from loss and give players a secure space.
Key Takeaways
- Offer many secure payment methods and accept various currencies.
- Use fraud detection and blockage of chargebacks.
Step 7: Launching the Platform
Launch your platform once it is developed. Begin with a soft launch to obtain user input and work out kinks before going large.
Full-Scale Launch
Upon initiation of your platform, complement with directed advertising campaigns, affiliate marketing, and social media presence to generate traffic. Monitor player comments and system use to shore up points of vulnerability.
Key Takeaways
- Roll-out low-key to allow for feedback and realignment.
- Employ promotion campaigns, affiliate relationships, and social networks to generate awareness.
Step 8: Marketing and Player Acquisition
Good marketing is responsible for the success of your iGaming site. Employ a mix of online marketing methods to acquire players as well as retain players.
Major Marketing Strategies
- SEO and Content Marketing: Optimize your site using SEO and make informative content in order to rank higher in search engine results.
- Affiliate Marketing: Employ affiliates who will send players to your site for a commission and, by doing so, enable them to earn also.
- Social Media Campaigns: Utilize websites like Facebook, Twitter, and Instagram to sell to your buyers and provide them with discounts.
Key Takeaways
- Build a complete marketing platform with SEO, content, affiliate marketing, and social media.
Step 9: Ongoing Operations and Scaling
Once your launch, steady improvement is the game of the name for long-term success.
Platform Updates and Scaling
Update your platform regularly with updates, new games, and new features. As your business expands, expand to move into new markets and buy up more licenses to expand your reach.
Key Takeaways
- Ongoingly develop your platform and introduce new features and games.
- Develop your business by opening up in new markets and obtaining extra licenses.
Conclusion: Building a Sustainable iGaming Business
An iGaming company must be well planned, invested, and well regulated. Market analysis, selecting the right software, obtaining the proper licenses, and more advanced marketing strategies will guide you towards a successful iGaming company in the long run.
AIS Technolabs knows the complexity of the iGaming business and offers cutting-edge solutions to assist entrepreneurs towards success. Our experience in game development, platform design, and compliance will make your iGaming venture stand on the solid grounds to grow and be profitable.
The iGaming industry is competitive and evolving, yet with a good plan and partners, it's a giant of an opportunity for anyone who's prepared to stir things up and bring the innovation for tomorrow. If you are committed to taking the initial step toward building your iGaming company, contact us now and let us determine how we can help make your dream a reality.
Disclaimer
This blog is intended for informational and educational purposes only. We do not promote or facilitate gambling activities in any country where it is considered illegal. Our content is focused solely on providing knowledge about legal and regulated markets. We only work with operators and platforms that are licensed and comply with the laws of jurisdictions where casino gaming is permitted. We do not operate or endorse any form of gambling in restricted regions. In countries where only skill-based games are allowed, our involvement is strictly limited to those games.
We believe gambling should be an entertaining and responsible activity. Our goal is to ensure that the platforms we review uphold the highest standards of fairness, transparency, and player safety.
FAQs
Ans.
iGaming refers to the internet gambling in which betting or games of chance are played for currency. It covers casino play, sportsbook betting, poker, bingo, and esports betting.
Ans.
To establish an iGaming business, you need to undergo several processes: market research, good business plan, selection of the appropriate software provider, correct license acquisition, creation of a platform, integration of payment, launch, promotion, and business growth.
Ans.
Yes, and then it should be acquired from genuine and experienced gambling commissions such as the Malta Gaming Authority (MGA), UK Gambling Commission (UKGC), or Curacao eGaming so that it is possible for it to operate legally and securely.
Ans.
Get a provider that has a range of games available, scalability, reliable payment integrations, and good security practices. Well-established providers such as AIS Technolabs provide fully owned customizable solutions.
Ans.
These winning marketing strategies include SEO, content marketing, affiliate marketing, social media advertising, and offering good bonuses and loyalty schemes to retain the players.
Ans.
You can grow your iGaming business by adding new games, increasing geographically, obtaining more licenses, and refreshing the platform from time to time so that the players won't be bored.
ASIA PACIFIC