Did you know that the online gambling business is currently one of the fastest growing business categories in the world? The popularity of online gaming is increasing rapidly and this year it has seen significant growth in Europe and Asia. In China and Malaysia, there are twice as many online gamers as online shoppers. About 43% of Chinese internet users play games online, while only 16% report buying online.
Revenue in the online gaming business rose from just $800 million to over $2 billion in 1999! By the year 2010, the online gambling industry is estimated to exceed $16 billion in revenue! Andrew Burnett, a London-based analyst at Merrill Lynch, says online gambling could generate more than $150 billion in revenue by 2015.
Until recently, small businessmen had no chance to break into 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, sportsbook and multiplayer poker room game business and generate income you’ve only dreamed of.
There are 3 ways to start an online gaming business:
1) Most Expensive – Design and implement all the gambling 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 betting site and full knowledge of the source code of your betting 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 to start an online gambling business and you will receive all the necessary gambling software and sometimes even the equipment. It is also the most popular choice for both licensed ground facilities and contractors. Costs range from $30,000 to $350,000. Average license fees are around $150,000 (this usually includes marketing costs). In most cases, a royalty is paid to the provider of the gaming software as a percentage of the monthly “take” or “drop” (gross profit). Usually, the gambling software provider has the payment processing (merchant account providers) already set up for a fully turnkey operation.
3) More Affordable – Become a sub-licensee of an existing licensee. This is the least expensive option to start an online gambling business. Costs range from $5,000 to $60,000. The sublicensee is responsible for all marketing and receives a smaller 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 the appropriate licenses for gambling operations. Casinos and poker rooms are registered as offshore gaming operations, and in turn, the respective countries earn significant license fees and tax-generated revenue.
As the use of the Internet spreads across the globe, the online gambling business will continue to be one of the most profitable online business opportunities of the 21st century.