How To Start Your Own Online Casino & Poker Room Gaming Business

Sports & RecreationsCasino-Gaming

  • Author Oleg Potemkin
  • Published June 21, 2007
  • Word count 1,073

Date: June 7, 2007

Dear Entrepreneur,

Did you know that online gambling business is currently one of the fastest growing business categories in the world? In fact, the gambling industry in the United States alone generates more annual revenues, than the Hollywood movie industry, music industry and video game industry sales combined! Americans spend over $54 billion on gambling annually. The popularity of online gaming is increasing rapidly and this year has seen significant growth in Europe and Asia. In China and Malaysia, there are twice as many online gamers as there are Internet shoppers. Around 43% of Chinese Internet users play games online, while just 16% report that they shop online.

Revenues in online gaming business rose from only $800 million to over $2 billion in 1999! By year 2006, it is estimated that online gambling industry will top over $14 billion in revenues! London-based Merrill Lynch analyst Andrew Burnett says online gambling could generate more than $150 billion in revenues by 2015. The potential of online gaming business is too big to ignore. Now is the perfect time to get onboard.

Until recently small entrepreneurs had no chance of getting into the gambling industry, because of huge capital investments, gaming license acquisitions and legal red tape. The internet eliminated all the obstacles. You can now own and promote your own online casino, sportsbook and multiplayer poker room gaming business and generate revenues you've only dreamt about.

There are 3 ways to start an online gaming business:

  1. Most Expensive - Design and implement all gaming software for an online casino, sportsbook and multiplayer poker room which 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 gaming site, and full knowledge of the source code of your gaming software. In addition, no royalties are paid out to a gaming software development company.

  2. Average - Become a Licensee of an Online Gambling Software Provider. This is a far less expensive option and the client receives all the gambling software and sometimes even the equipment necessary. It is also the most popular option for both licensed land-based establishments as well as entrepreneurs. Costs range from $30,000 to $350,000. The average licensing fees are around $150,000 (this usually includes marketing costs). In most cases a royalty is paid to the gaming software provider as a percentage of the monthly "take" or "drop" (gross profit). Usually the gaming software provider has payment processing (merchant account providers) already set up for a fully turnkey operation.

  3. Most Affordable - Become a Sublicensee of an existing Licensee. This is the least expensive option to start an online gaming business. Costs range from $5,000 to $60,000. The sublicensee is responsible for all the marketing and receives a smaller percentage than a full licensee (2), because royalties paid to the licensee are much higher.

To legally operate online gaming businesses, online casino and poker room owners turn to sovereign governments in countries that permit gambling and duly issue licenses for gambling operations. The casinos and poker rooms are registered as offshore gambling operations and in turn, the respective countries gain significant licensing fees and tax-generated revenues.

Potential Profits

As an Internet casino and poker room franchisee you could generate millions of dollars within the first few years in business. Your online casino and multiplayer poker site can generate revenue for you 24-hours a day, 365 days a year.

Online Casino - A $1,200 per day win for the house could represent as few as 24 people playing in your own online casino!

Multiplayer Online Poker - The profits of the online poker industry is enormous! The amount gambled on poker websites around the world in year 2005 is estimated to be more than S60 billion! Around 1.5 million people play poker online regularly for real money and the number is growing by 100,000 a month. Poker websites make their money by collecting a "rake" from each pot, usually 1%-3% of the cash in that pot.

No company can guarantee earnings that are dependent upon many factors. Marketing is the key to your business success. What is required is targeted traffic. Some online casinos and multiplayer poker rooms are doing well over $1 million per month in profits. As Internet use spreads across the globe, online gambling will continue to be one of most profitable business opportunities of the 21st century. Take your share of the Multibillion dollar online gaming industry today!

Once your casino, sportsbook or multiplayer poker room website has been designed it is then your responsibility as the online gaming business owner to market the product. However, our gaming software provider will provide you with a step-by-step, proven internet marketing plan to ensure your own online gaming business is profitable.

You will also have 24 hour access to the backend of your own online casino and multiplayer poker gaming site. With your user name and password, you can log into your casino/poker site and check the daily, monthly or yearly monetary stats as well as customer info. These stats are flexible and can be broken down into how much was wagered on a certain game, amount won or lost by a certain player, percentage at which the game has paid out...etc. The customers in your own online casino & poker database who sign up with your gaming site belong only to you and are not shared with anyone else.

You will also have your own personal tracking software. This very detailed software will list all the websites or referrers which people are using to find your own casino and poker website. You will know how many hits, unique visits, pages views your casino and poker site receives, who is your best referrer...etc. You will also know which keywords are being used to find your online casino and poker room in the search engines as well as the amount of traffic from different countries.

The general rule of thumb is, the more money you put toward marketing of your own online casino, sportsbook and multiplayer poker room online gaming business, the higher the revenues, the higher the net income. You can expect to keep between 75% and 90% of the gross monthly deposits.

Our gaming software provider will produce a detailed monthly accounting report which will include the breakdown of total deposits, withdrawals, operating expenses, and the total payable to the licensee. Then they will wire the proceeds of your online casino and poker room to the account which you specify.

Oleg Potemkin, marketing director

100% Turnkey Casino & Poker Sites

http://www.casinoseller.com Internet marketing expert since 1999

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