This post is for you if you’ve ever caught yourself daydreaming about running your own online casino. What better tantalizing thought is there for a growth-minded affiliate marketer in the iGaming business landscape? Everyone knows the glitz, the glamor, and the potential for massive profits for affiliates and other stakeholders in the gambling industry.
Before you start picking out names for your virtual slot machines, let’s talk cold, hard cash. Here are the million-dollar questions: Just how much does it cost to start an online casino today? How much is a gambling license? What is the average online casino software price? How much does it cost to run a casino?
Let’s cut to the chase: starting an online casino in 2024 is likely to set you back close to hundreds of thousands of dollars, if not even a million. Yes, you read that right—seven figures! However, don’t let that number scare you off just yet. It is important and helpful that you read on.
This fundamental guide is for every iGaming business enthusiast, irrespective of your current financial situation. In it, we will break down where the essential money involved in starting and running an online casino goes. That’s not all; we’ll also offer some alternatives for those who don’t have spare millions of dollars lying around. So, relax and enjoy this simple iGaming economics!
Beyond the Million-Dollar Question: A Call to Greater Commitment
First things first, we must tell you about the commitment required to work with our answer to today’s main question: How much money do you need to start a casino? Launching an online casino takes more than just a great idea; it demands careful planning (like having an affiliate marketing business plan), extensive research, financial investment, and a demonstration of a thorough understanding of the industry.
The costs involved in starting your own online casino enterprise can be significant. For this reason, you need to consider every aspect carefully. So, how much does it cost to start an online casino? Let’s begin with the basics.
Understanding the Basics: Initial Costs
When considering the cost of launching and managing a successful online casino business, the first step is to identify the initial expenses involved. These typically include but are not limited to the following:
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Online Gambling License Cost
Obtaining a license for iGaming operations is a mandatory step that varies widely from one jurisdiction to another. So, how much is a gambling license? Well, it can range from $20,000 to $500,000. The amount depends largely on the licensing authority you choose and your preferred type of license.
There are many licensing authorities across the world. But the most popular licensing bodies for online casino business launches are the Malta Gaming Authority (MGA), the Gambling Commission in the United Kingdom (UKGC), and the Curaçao Gaming Control Board (GCB). Whether you choose these ones or others, we strongly recommend that you visit their websites to explore the details of their licensing offerings and compare the costs. This will help you to make a budget-friendly decision that is good for your business goals. Besides, while less regulated markets may offer lower online gambling license costs, they often come with increased risks. Ensure to research thoroughly before deciding on a jurisdiction.
Remember, these are just the initial licensing costs. Most jurisdictions require annual renewals and ongoing compliance fees. And whatever you do, don’t even think about skipping this step! Operating without a license is a one-way ticket to “Shutdown City,” where no entrepreneur wants to live. You know what we mean.
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Website Development
In this industry, you can do affiliate marketing without a website. But what is an online casino platform for players to play their favorite games and win real money without a website? That’s unimaginable!
A user-friendly, mobile-optimized, and attractive website is indispensable when trying to grab your iGaming space as a casino owner. This applies to whether you want to launch your online sportsbook or take a technologically advanced step further to start your own crypto casino. Your website is your storefront, which you need to do your best to make count. In other words, it needs to look professional and function flawlessly.
So, how much should you expect to spend on casino website design, functionality, security, hosting, and every other essentials to get your online gaming platform running? We recommend budgeting between $5,000 for a basic site (not ideal) and up to $50,000 for a custom-designed, feature-rich platform (ideal). Keep in mind that the more traffic you expect, the more you’ll pay your web hosting service provider.
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Online Casino Software Price
This is one of the most significant costs you will encounter. Depending on the provider, the online casino software price can range from $10,000 to over $200,000. Ideally, this software should encompass everything from game selection to payment processing and user interface design. You can either partner with game providers (who will charge a fee) or build your own game software (if you have the resources). Ensure to choose wisely!
Ongoing Operating Costs
Once you have your casino up and running, ongoing costs must be considered. Understanding how much it costs to run a casino will help you plan your budget effectively—we can’t overemphasize that. Here is a quick look at what to set aside for the operating costs of managing your own online casino:
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Software Maintenance
Keeping your casino software updated is essential for smooth and secure operations. Regular maintenance ensures that your platform runs efficiently and adapts to new gaming trends and security protocols. Expect to allocate around $1,000 to $5,000 per month for these updates, which cover bug fixes, new game integrations, and security enhancements.
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Customer Support
Providing exceptional customer service can set your casino apart from competitors. Investing in a dedicated support team is important for handling player inquiries, resolving issues, and maintaining customer loyalty. Depending on the size of your operation, we recommend you budget between $2,000 and $10,000 monthly. Moreover, you may want to consider multilingual support to cater to a diverse player base, enhancing the overall user experience.
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Marketing, Promotion, and Management
A robust marketing strategy is key to attracting and retaining players. Investing in digital marketing, content marketing, search engine optimization (SEO), and affiliate programs can significantly boost your casino’s visibility and player acquisition.
In terms of costs, plan to spend between $5,000 and $50,000 monthly on casino marketing and promotion. Tailor your campaigns to target specific demographics and leverage data analytics to optimize your marketing efforts for maximum impact.
What is more, since running an online casino is a team show, here are some key roles you’ll need to consider filling and spending money on annually:
▪️ Chief Executive Officer/Founder: $100,000 – $200,000
▪️ Chief Technology Officer: $90,000 – $150,000
▪️ Chief Marketing Officer: $80,000 – $120,000
▪️ Chief Financial Officer: $80,000 – $120,000
▪️ Legal Advisor: $70,000 – $120,000
▪️ Game Developers: $60,000 – $120,000
▪️ Security Analyst: $60,000 – $110,000
▪️ Customer Support Team: $30,000 – $50,000 per person
▪️ Affiliate Manager: $50,000 – $80,000 (You might want to handle this yourself in the early stages of your startup!)And that’s just scratching the surface! You’ll also need SEO specialists, content writers, data analysts, and more. The total annual payroll could easily exceed $1 million.
The Bottom Line, but Not the Conclusion
As roughly but systematically presented, embarking on the journey of owning an online casino requires a substantial financial commitment. When you tally up the initial expenses, you’re looking at an investment ranging from $500,000 to $2 million. This covers everything from licensing and software to marketing and legal fees.
However, the financial commitment doesn’t end there. Ongoing monthly costs, which can easily exceed $100,000, are essential for maintaining operations and ensuring growth. These include expenses for software maintenance, customer support, and continuous marketing efforts to keep your casino competitive in the dynamic gaming industry. In reality, not every aspiring online casino owner can afford this. But there is hope.
Good News! A More Affordable Alternative with P4P.Partners
Feeling a bit overwhelmed? Don’t worry, there’s a much more accessible way to get into the online casino game and start making your millions without bothering yourself with questions like “How much does it cost to get a gambling license?” It is called affiliate marketing. Guess what? You can do this business with or without a social media following. How does it feel knowing that you don’t have to be a social media influencer like Cristiano Ronaldo to generate cool income from affiliate marketing? Yea, that smile on your face… We like it!
Basically, with our P4P Partners platform, you can promote established online casino brands and earn high commissions without the hefty upfront investment that launching your own online casino requires. For instance, both our OneDun affiliate program and Spades Queen casino affiliate program offer attractive commission structures and comprehensive support for new and seasoned marketers in the industry. Therefore, you can start earning with minimal initial costs, and who knows? Maybe one day you’ll parlay that affiliate income into your own casino empire! Got any questions for us? Feel free to contact us.
Finally, whether you prefer affiliate marketing or choose to launch your own gaming site and handle the online casino license cost and other expenses, the iGaming industry offers plenty of opportunities for everyone to grow rich. Only those willing to put in the work soar and achieve their dreams. So, are you ready to place your bets?
