The Gambling Industry: How to Start Your Own Business
Did you know that the global gambling industry is expected to reach $647.9 billion in value by the year 2027? This statistic clearly shows that there is a lot of money to be made from gambling.
Because of this, many entrepreneurs are considering starting their gambling businesses. But, exactly how do you go about doing this? And how do you make sure that your business ends up a success?
Simple: by reading this gambling tips guide! In it, we’ll be going over the average process of starting your gambling business.
That way, you’ve considered every angle and have the best possible chance of succeeding. Let’s get started!
Decide What Type of Gambling Industry You Want
The gambling industry is quite diverse. There are classic casino games like blackjack, poker, and roulette. There are slot machines that are used more for fun and novelty.
Then, there are sports betting businesses which have picked up more in recent years. It’s important to narrow your focus to deciding what types of gambling you want to offer your clientele.
At first, you might be tempted to offer as wide a selection of games and gambling types as possible. However, we generally recommend against this. Remember the saying that a jack-of-all-trades is a master of none?
This applies to gambling businesses too. If you’re offering everything to your betting visitors, then it’s quite likely that the options are lacking in quality.
Instead, pick an area to focus on and work at making it as entertaining and successful as possible. Don’t pick something broad like sports betting either. Select a specific sport like football, basketball, or baseball instead.
Remember that you can always expand your offering down the line. But, when you’re just starting it makes sense to start small.
It’s important to remember that starting a business is going to require some serious funds. First, you’ll need money to get your website or establishment up and running.
You also need money to pay any bettors that end up winning. Lastly, you’ll need money for miscellaneous things like gambling licenses and marketing costs.
Unless you’re sitting on a large pile of money, you’ll likely need to secure funding from a lender. To accomplish this, you will need a dependable business plan. We recommend working with a professional to craft it.
That way, you can prove to whatever lender you’re going through that you’re not a fly-by-night operation. If you’re having trouble securing an investor, then you might consider borrowing money from family or friends.
However, don’t be surprised if they’re none too eager to help you. Gambling ventures can be undeniably risky. So, unless it’s something you’re passionate about it can be a hard sell.
Online or In-Person?
Next, it’s time to decide if your gambling business will be entirely online or have a physical, in-person establishment. There are a lot of benefits that come with choosing online options for your business.
For one thing, you don’t need to pay for a lease that comes with in-person establishments. It’s also much easier to reach a wider consumer base with an online presence.
That being said, if it’s always been your dream to own a physical casino, then go for it. In some cases, this might be your only option if your state outlaws online gambling.
You can also go for the hybrid option to get the best of both worlds. Just keep in mind that this option will likely be much more expensive since you’re paying for rent and website development.
Pick a Tech Partner
Regardless of whether you’re going with the online or in-person option, it’s important to find a qualified tech partner. Your gambling website is going to give people the first impression of your business.
That being said, this step is much more important if your gambling business operates entirely online. If your website looks sketchy, then people aren’t going to want to gamble on it.
A tech partner can ensure that your business has a professional look that attracts the type of consumers you want. In some cases, you might want to offer online games like poker, slots, or blackjack.
In these cases, you will want to make sure that your tech partner has a background in online game development. When choosing a tech partner don’t just go for the cheapest option.
You want to make sure that the person you’re working with understands your vision. That way, you have the best chances of making that vision a reality.
Get a Gambling License
For your website to operate legally, you will need a gambling license. Unfortunately, there’s no one-size-fits-all gambling license. That’s because different countries and states have different laws when it comes to gambling businesses.
Some require a thorough inspection before they’ll issue you a license. Others are much more relaxed in terms of who can run a gambling business.
So, do some research on gambling jurisdictions. It might be helpful to consult with a lawyer during this phase to get a sense of the taxation policies, license processing times, and prices.
Then, begin collecting all the documents you will need. This typically includes your passport, criminal record, references, and proof of address.
If you’re running an online business you will also need to prove that your software is meeting the requirements in whatever jurisdiction you’re working out.
Create a Safe Experience
It’s an unfortunate fact, but there are a lot of scam artists out there in the gambling industry. This is particularly true for sports betting and casino websites.
Sometimes these scam artists actively prey on their website visitors. For example, they might make it impossible to withdraw any funds or winnings when it comes time to cash out.
Other times, it might be by accident. The business owner might not put a lot of effort into their website’s security. This is like an open invitation to hackers and other cybercriminals looking to make a quick buck.
Remember that the average gambler can tell when a website is sketchy. If the gambling experience feels unsafe they’re likely not going to stick around for long.
And, if you’re lucky enough to find someone who doesn’t mind, there’s a high chance they’ll have a bad experience. This can be even worse because they’ll describe their negative time either through word-of-mouth or on review sites.
So, remember to put some effort into the security of your gambling business. Users crave a safe experience and if you provide it, then it’s going to catch on.
If you’re lucky enough you might end up on a betting site guide like https://www.bookmakersreview.com/sportsbooks/.
These resources rate gambling sites based on how safe they are. Getting listed in them will likely result in a huge boost to your traffic.
Find a Payment Provider
To take payments from consumers (and give them back if they win), you will need to work with a payment provider. The good news is that companies like STICPAY make this pretty easy.
The first thing you will need to do is submit the necessary documentation to the payment provider. Upon verification, you will set up an e-wallet. This e-wallet will serve as a payment gateway for your website.
Remember that the more payment types your business accepts the more successful you will be. These days it’s common to see gambling businesses accept Paypal, bank transfers, and even cryptocurrency.
Create a Marketing Strategy
There’s a reason why one out of twelve businesses closes every year. All too often, new businesses will put all of their money into setting things up. Then, they’re surprised when people don’t start to visit.
When it comes to gambling businesses the adage “if you build it, they will come” doesn’t ring true. The reality is that there are a lot of gambling businesses out there.
As such, you need a good marketing strategy to set yourself apart from the competition. Some good marketing strategies for new gambling businesses include things like:
- Social media marketing
- Email newsletters
- Content marketing
- Mobile marketing
- Integrated digital marketing
Don’t try to craft these strategies entirely on your own. Work with a qualified marketer to create a plan, then allow them to execute it.
That way, you have the best chance of getting word about your new gambling business out there.
Appreciate Learning About the Gambling Industry? Keep Exploring
We hope this article helped you learn more about how to start your own business in the gambling industry. The hardest part of starting a gambling business is standing out.
Remember that there are a lot of options out there that are more well-established than your business. So, the key to success is creating a safe environment that stands out.
If you accomplish this, then you have the best chance of attracting clientele. Enjoy learning about this business topic? We have lots of similar topics for small business owners, so keep scrolling to find them all.