Online entrepreneurship extends to all sorts of business sectors. In recent years, anage-old business is making it online: casinos. While traditional casinos struggle to make money, online casinos have been thriving in recent times. Savvy entrepreneurs and start-ups may wonder whether online casinos are a better way to make money than starting yet another e-commerce website. Let’s consider that topic.
What are Online Casinos Anyway?
Online casinos are essentially websites that allow users to play online gambling games. These games may look like the casual games you can play on platforms like Facebook. Most games on casino sites are digital versions of classic gambling games, like live dual play roulette or online round table poker. There are also numerous slot machine games with various themes. Users can sign up with their credit card information to make bets when playing games. Winnings are deposited to users’ accounts, similar to how eBay or Amazon deposits money when you sell an old item on their site. Business models will vary depending on the site.
Online casinos do face a throng of legal issues. Mainly, legality of gambling sites can be controversial or outright banned in places where gambling is illegal. Being online is not an exception. The other big issue for online casinos is taxes. Most of the popular sites are based at tax shelters like Malta, where permits for casinos are easily granted. Overall, legal issues are not a major problem for veteran online casinos. If you can get a background of the company running the site, such as checking the stock market index, then it’s relatively easy to understand the legitimacy of the site.
Playing and Profitability
Playing casino games is relatively easy. You can play for fun without risking any stakes with some games, like slot machines. But without the stakes it can get boring quite fast. Players at these sites can participate in a variety of automated and live games. Live games may connect players from all over the world for a traditional gambling game like poker or blackjack. Automated games can be played against an algorithm for winning largely by chance. In essence, playing at online casinos are as thrilling as playing at a traditional casino, and even more so in some instances.
Online casino sites are immensely more profitable than actual casinos, as evidenced by the decline of places like Atlantic City while the online gaming industry boomed. There are no exact numbers or figures for comparison because these companies do not make these numbers public without special request.
Other than the owners of casino sites themselves, the biggest profiteers of these sites are game developers like Boss Media and Playtech. A developer can come up with a good casino game and license the use of software to casino sites and turn a lucrative profit. The casino sites themselves do not create or own these games. Popular games are in high demand by most sites and the developers can charge a premium.
Launching a Site
Entrepreneurs interested in entering the online casino industry should consider whether it’s more profitable to launch a site, or to invest in the development of a game. Launching a casino site involves spending a lot of money on custom web design, because there are not gambling templates on WordPress. Unlike launching an e-commerce website, casino sites require special permission to launch. Most government do not issue these permits so casino sites often start companies in countries like Malta where such permits are easy to obtain.
It’s far easier to develop a game and profit from licensing fees. If you own intellectual property rights to a game, at least partially, that should allow you to earn a lucrative income for years.