How Much Money You Need To Open An Online Gambling Business

Opening an online gambling business now is a good idea, as the market is expected to grow by 11.5% per year. However, there are many aspects of this type of business you need to take care of in order to operate it, and they all have their own costs. Let’s see how much you will have to spend to open your own online gambling business!

Registering the company

Buying software

Applying for a gambling license

The payments reserve

Creating the website and application

Other expenses you should consider

Open an online gambling business for less

Registering the company

You have to register the company in order to be able to open bank accounts, obtain a license, and collaborate with payment services and software suppliers. The best thing you can do is register your company in the country where you will apply for a license, as this facilitates the process and may even result in less taxation.

Costs of registration differ and can range from 200 dollars to 2000 or even more in some cases. Keep in mind that you also have to add the cost of hiring a lawyer to help you with registering your company, which can range from 500 to 1000 dollars.

Other costs may include renting an office, fees for filing an application to register the business, registering your trademark, purchasing equipment, and even hiring local employees. To determine these costs, you have to check the market for all the products and services you need and decide the salaries for your employees.

Cost and time of registration by country

CountryCost of registrationTime of registration
USA$200From 1 hour to a day
UK€550From 2 working days
Isle of Man€1,100Up to 2 weeks
Antigua$2,0001 day
Costa Rica€2,850Up to 3 weeks

Buying software

The software you need for your online gambling business is:

  • Game platform – the price for this can range between 10 dollars to 500.000 dollars and commission, which can be from 15% to 60%. This software category allows you to administer user accounts, manage platform resources, and more. Some of the most popular providers of such software are Microgaming, RTG, and Cryptologic;
  • Games – this is an essential part of your site, and the price for one game can be anything between 200 and 5000 dollars and commission. You can either go for a complete package of games and platform software or buy your games separately. The first option is faster, easier, and even cheaper. Some software providers you should go for are NetEnt, Microgaming, Play’n GO, IGT, Evolution Gaming, and Betsoft;
  • Payment methods – the cost for one payment gateway is 20,000 dollars per month. These allow financial transactions between your business and the customers. Visa, Mastercard, Neteller, Skrill, and PayPal are some of the most used payment options.

An alternative to working with a supplier of platform and games software is to develop your own by hiring a team of developers. This, however, takes more money and time.

Applying for a gambling license

A gambling license allows you to operate your business and offer services to customers in a particular region. An offshore license can cost between $100,000 and $300,000, while one for the European Union can get to $1 million.

How Much Money You Need To Open An Online Gambling Business

The 6 classes of gambling licenses

1. Class 1 – allows you to offer repetitive games such as skill games, online casino, or lotteries;

2. Class 2 – covers the bets category, which includes fantasy sports, significant events, e-sports, and regular sports;

3. Class 3 – allows you to promote other people’s gambling to earn a commission;

4. Class 4 – this is required for ensuring the operation of remote gambling platforms;

5. Class 1 on the 4th – with this, you can manage a casino on someone else’s remote platform;

6. Class 3 on the 4th – allows you to promote other platforms in order to earn a commission.

Popular jurisdictions license price and annual fees

JurisdictionLicense priceAnnual feeWaiting time
Isle of Man£1,000£35,0004 months
UKFrom £3,000£25,00012 months
MaltaFrom €15,000€15,0006 months or more
CanavecFrom C$15,000C$10,0001 month or more
BelizeFrom $18,000$10,0002 months
GibraltarFrom $30,000$3,0003 months
Costa RicaFrom $40,000$10,0003 months or more
CuracaoFrom $40,000$15,0001 month or more
PanamaFrom $40,000$20,0002 months or more
AlderneyFrom €82,000€35,0003 months or more

You may also have to pay additional fees such as the C$15,000 required in Canavec for technical software verification.

The payments reserve

The reserve for payments represents the amount of money you are required by law to put in the bank to guarantee payments to winning customers. These have to be in a separate bank account and cannot be used for other expenses such as tax payments, dividends, or any other operations.

Minimum payments reserve by jurisdiction

  • Great Britain – 175,600 pounds;
  • Curacao – 60,000 Dutch guilders;
  • Antigua and Barbuda – 100,000 dollars;
  • Panama – 100,000 dollars;
  • Belgium – 75,000 to 250,000 euros.

Creating the website and application

The cost of creating the website and mobile application for your online gambling business varies depending on which features you include and what is the development approach.

The more features you add, the more satisfied your customers will be, but the time required to complete it and the costs increase.

Developing the site and mobile app may cost:

  • From $10,000 to $50,000 if you choose to develop everything from scratch;
  • From $3,000 to $30,000 if you work with a white label;
  • From $20,000 to $500,000 if you use WordPress or Moodle.
How Much Money You Need To Open An Online Gambling Business

Other expenses you should consider

An online gambling business comes with many other expenses such as:

  • Promotion for your business – $20,000 to $100,000 per month;
  • Salaries and maintenance – $500,000 to $600,000 per year for Canada, United States, Western Europe and Japan; $200,000 to $300,000 in Eastern Europe; $100,000 to $150,000 per year in Latin America, Africa, and some parts of Asia;
  • Server costs – $5,000 – $20,000;
  • Commissions on banking transactions – 0.1 to 3% of the amount transferred.

To these, you may also add office rent, representation costs, and taxes, which vary depending on many factors.

Open an online gambling business for less

You can open an online gambling business without all the expenses listed above. An excellent example of what you can do is Casinobonusca, an affiliate website that focuses on educating and helping Canadian players make their choice of casino.

Affiliate websites come with no games or payment methods integrated, so those are huge expenses you can cut off from the list. For such a company, you do not need a high number of employees to start with. Our example here works with a few highly skilled gambling experts to deliver unbiased and complete information on each online casino and promotion they have on their website.

You can cut costs even more if you decide not to rent a big office and, instead, collaborate with your writers remotely.

In conclusion, opening an online casino is very expensive, and it takes a lot of time. However, you can create your own business model and aim to cut costs as much as possible. Alternatively, you can opt for an online gambling affiliation business and launch your project a lot sooner and for a smaller investment. 

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