Did you understand that online gambling business is currently one of many fastest growing business categories on earth? The popularity of online gaming is increasing rapidly and in 2010 has seen significant growth in Europe and Asia. In China and Malaysia, you will find twice as many online gamers as you will find Internet shoppers. Around 43% of Chinese Internet users play games online, while just 16% report which they shop online.
Revenues in online gaming business rose from only $800 million to over $2 billion in 1999! By year 2010, it’s estimated that online gambling industry will top over $16 billion in revenues! London-based Merrill Lynch analyst Andrew Burnett says online gambling could generate a lot more than $150 billion in revenues by 2015.
Until recently small entrepreneurs had no chance of engaging in the gambling industry, as a result of huge capital investments, gaming license acquisitions gclub and legal red tape. The web eliminated most of 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.
You can find 3 ways to start an online gaming business:
1) Most Expensive – Design and implement all gambling software for an online casino, sportsbook and multiplayer poker room which may set you back an incredible number of US Dollars. You will even need to obtain a gaming license to perform your online gaming business, which requires approval from most governments. However, you may have full control of your gambling site, and full understanding of the foundation code of your gambling software. Additionally, no royalties are paid out to a gambling software development company.
2) Average – Turn into a Licensee of an Online Gambling Software Provider. This can be a far more affordable option to start an online gambling business and you will receive most of the gambling software and sometimes even the apparatus necessary. It is also the most popular option for both licensed land-based establishments along with entrepreneurs. Costs range from $30,000 to $350,000. The average licensing fees are about $150,000 (this usually includes marketing costs). Generally a royalty is paid to the gambling software provider as a portion of the monthly “take” or “drop” (gross profit). Usually the gambling software provider has payment processing (merchant account providers) already set up for a fully turnkey operation.
3) Most Affordable – Turn into a Sublicensee of a preexisting Licensee. Here is the least expensive option to start an online gambling business. Costs range from $5,000 to $60,000. The sublicensee is responsible for the marketing and receives a smaller percentage than the usual full licensee (2), because 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 permit online gambling and duly issue licenses for gambling operations. The casinos and poker rooms are registered as offshore gambling operations and consequently, the respective countries gain significant licensing fees and tax-generated revenues.
As Internet use spreads across the world, online gambling business will remain one of most profitable online business opportunities of the 21st century.