How To Start Your Own Online Casino and Poker Gaming Business

Did you know that 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 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 2010, it is estimated that online gambling industry will top over $16 billion in revenues! London-based Merrill Lynch analyst Andrew Burnett says online gambling could generate more than $150 billion in revenues by 2015.

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 gambling 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 gambling site, and full knowledge of the source code of your gambling software. In addition, no royalties are paid out to a gambling software development company.

2) Average - Become a Licensee of an Online Gambling Software Provider. This is a far less expensive option to start an online gambling business and you will receive 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 gambling software provider as a percentage 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 – Become a Sublicensee 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 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 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 in turn, the respective countries gain significant licensing fees and tax-generated revenues.

As Internet use spreads across the globe, online gambling business will continue to be one of most profitable online business opportunities of the 21st century.

Online Casino Software – Overview

The most common form of the online casino is obtaining downloadable software usually for free once the gambler surfs to any online casino on the internet. In fact, many sites offer the download as an automatic process to encourage gamblers to play for fun or money, besides bonuses and other incentives.

An online casino offers as the main advantage, to allow you to take the gambling room to the comfort of your home by just installing the software that connects to the online casino service, which handles all contact without any browser support. This makes any game easy and faster to play. Audio, video and graphics reside inside the application and there you will not have any waiting time for the games to load as you do when you are playing through the web browser.

Downloadable software offered by an online casino may include a single game or a number of popular games including poker, video poker, blackjack, baccarat, slot machines, roulette, and craps, among the most popular casino games, also available outside many land-based casinos where they are playable on simulation machines.

As soon as the first online casinos started to operate, online casino software began its development. One of the first companies producing casino games was Random Logic, founded in 1996 and currently licensing its software consisting of 6 video poker games, 5 progressive jackpots and 15 new slots, to Cassava Enterprises with exclusive rights.

This company also implements and develops online transaction processing systems and other tools for tracking and analyzing internet-marketing campaigns, including but not limited to the gambling industry. This is another branch of online casino software for gamblers seeking to analyze their chances to win.

Casino software generally provides a predictable long-term advantage to the house, but offering the gambler possibilities of a large short-term payout. The advantage of online casino software is the way gamblers get an illusion of control with the given choices, although such choices do not eliminate the long-term disadvantage risk, or in other words the house advantage.

Some gambling companies are developers of their own software, for example, CTXM a software company with roots in the Insurance financial area and owner of gaming related domains operating since 1997. CTXM not only develops internet payment systems for several of the biggest online gaming companies but also online casino software including sportsbooks, race books, and casino platforms, system maintenance and other projects including security consulting and game application development with a Microsoft Xbox Division.

At the present, the gambling industry has listed a large number of online casino software developers including companies like Dynamite Idea, WagerLogic, NetEnt, Sunfish, Digital Gaming Solutions, Parlay Entertainment, Gamesys, Dobrosoft, IGW Software, Eclipse Gaming, Boss Media, IQ-Ludorum, SkillJam Technologies Corporation, World Gaming, Ongame, vsGaming, RealTime Gaming, Chartwell Technology, Microgaming, Orbis Technology, Finsoft, Wirex and Electracade just to name a few.

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