Advice on starting online casino

Hi All,

I wanted to firstly thank you for taking the time to read this.

I am thinking of creating my own online casino and wanted to ask for your
advice and input, as to how much such a setup would typically cost online.

I have done research into companies such as SoftSwiss casino, who have
provided a costing of 30,000 Euros.

SoftSwiss have advised this cost covers a gaming platform with CMS and a
powerful backend that I have full control of, 40 casino games by Softswiss
and 150 games by BetSoft, website design and development, gaming license
and an infrastructure of payment gateways.

SoftSwiss also charge recurring costs of royalties in the amount of 15% of
Net Gaming Revenue starting from the first month of operation.

Do you think the above figures sound fairly expensive, or at a reasonable rate in
your opinion?

I have looked at other avenues of launching an online casino but SoftSwiss
is (so far) the only one that I have come across. In your view, would you
be able to recommend any others or have you come across any other online
casino developers that provide a superior service for a cheaper price?

I am quite new to the industry and am looking to gain an insight into the
approximate costs involved with setting up an online casino from scratch.

Thank you for taking the time to read this.

That sounds like a fair White Label deal. The other big fish in that pond is EveryMatrix, who you should consider as well.

I've thought about doing my own White Label casino, so would be interested to hear what happens.

Of course, a bid downside to going White Label is you can't configure the game rules and your casino will seem like it was made with a cookie cutter like the many others they make.

Finally, don't forget the expense of support is on you.

dont forget you must have a decent "reserve" so you can pay players in timely manner, esp if some hit big ( and I can assure you they will ). You can't expect white label casino to immediately start paying itself off.

Quote: Zuga

dont forget you must have a decent "reserve" so you can pay players in timely manner, esp if some hit big ( and I can assure you they will ). You can't expect white label casino to immediately start paying itself off.

I would think a major cost would be advertising. How much is it going to cost acquire players? There are so many casinos out there not only do you have to differentiate yours, you need to educate players on why your casino is a better choice than all the others out there.

Quote: DRich

I would think a major cost would be advertising. How much is it going to cost acquire players? There are so many casinos out there not only do you have to differentiate yours, you need to educate players on why your casino is a better choice than all the others out there.

yes you need to have some sort of advertising budget, but not so much for TV ads. Most online casinos heavily depend on affiliates sending them the traffic ( players ). So that advertising budget is usually directed at tenancy fees, CPAs , hybrid deals etc.

But most important is to have enough money to pay your winning players. Without having some reserve no one should start a casino.

"If you want to make money in a casino, own one."

--- Steve Wynn

Agree with the comments that you have to have a pot of cash ready to pay out big winners. So, am curious how much you think is enough? I'm thinking 100K if BJ betting is limited to maybe $10 a hand and VP up to $1 denom?

^ That's a total wild guess on my part, curious what others think.

It's been too long since I did any sort of ruin theory to figure it out mathematically.

Quote: MrV

"If you want to make money in a casino, own one."

--- Steve Wynn

Tell that to CET.

10c 100 play full pay deuces

Or full pay jokers. I'm not too picky.

I like this idea and I understand how difficult is to open your own casino, it requires a great amount of time, knowledge and nerves so you should understand that it also claims great budgets, othewise players will pass through. Also such forums as WizardofVegas will help to provide info despite there are good feedbacks or bad))))
Generaly..I`m intereted what budget do you have for casino opening?

Quote: Entirele

I like this idea and I understand how difficult is to open your own casino, it requires a great amount of time, knowledge and nerves so you should understand that it also claims great budgets, othewise players will pass through. Also such forums as WizardofVegas will help to provide info despite there are good feedbacks or bad))))
Generaly..I`m intereted what budget do you have for casino opening?

Initially for the budget we were considering approximately $100,000 AUD as a reserve which includes the casino opening costs and a budget for paying out winning players.

I have gone through the investment of time, knowledge (and unfortunately nerves) and am looking to establish a rough idea of what an appropriate cost is for designing an online casino.

Is $100,000 enough for a budget?

Quote: Wizard

That sounds like a fair White Label deal. The other big fish in that pond is EveryMatrix, who you should consider as well.

I've thought about doing my own White Label casino, so would be interested to hear what happens.

Of course, a bid downside to going White Label is you can't configure the game rules and your casino will seem like it was made with a cookie cutter like the many others they make.

Finally, don't forget the expense of support is on you.

Hi Wizard,

Thank you so much for replying, your thoughts and advice are much appreciated.

Assuming we can drive a lot of players to the site, my main concern is around cost. Does the figure I quoted in my original post sound too expensive, or too cheap, or just the right amount?

Along with the opening cost for an online casino, what is the approximate time investment that is required for answering support-related issues relating to a casino?



PS. Liking your quote about winning or losing, but rather whether or not one had a good bet - so much of that quote applies to poker as well)))

Quote: rsactuary

Agree with the comments that you have to have a pot of cash ready to pay out big winners. So, am curious how much you think is enough? I'm thinking 100K if BJ betting is limited to maybe $10 a hand and VP up to $1 denom?

^ That's a total wild guess on my part, curious what others think.

It's been too long since I did any sort of ruin theory to figure it out mathematically.

I was initially thinking a $100,000 reserve to start, on top of the casino opening cost.

Do you think the casino opening cost is a fair price, given Wizard's comments earlier about it being fairly White Label?

Quote: DRich

I would think a major cost would be advertising. How much is it going to cost acquire players? There are so many casinos out there not only do you have to differentiate yours, you need to educate players on why your casino is a better choice than all the others out there.

In terms of acquisition, we have come across a few methods of driving traffic to our site mainly from a macro, country-specific perspective. I will be looking to rely on heavy affiliate promotions and word of mouth and am thinking of targeting particular demographics which will be able to ensure a steady stream of players.

Also sorry for the multiple posts in this thread from me, just realised I can insert quotes from others into the same post.

Quote: Zuga

yes you need to have some sort of advertising budget, but not so much for TV ads. Most online casinos heavily depend on affiliates sending them the traffic ( players ). So that advertising budget is usually directed at tenancy fees, CPAs , hybrid deals etc.

But most important is to have enough money to pay your winning players. Without having some reserve no one should start a casino.

The focus on budgeting for player payouts is a good point. My first thought was $100,000 - is this too big or too little? What about the opening cost for a casino, is that too expensive in your opinion DRich?

I have would budget at least half a million USD to do a White Label Internet casino. You should consider this expendable money that won't bother you if no players find your casino among the hundreds of others out there.

How do you plan on getting and keeping player's?

What makes your casino different then other's?

There's casinos that offer thousands in sign up bonuses.

What will you be offering?

Can't wait to see a list of your terms and conditions.

I apologize for the late post. Average prices in recent years:
The price for white label will be about 5000 euro
For a project from scratch about 15,000 euro
I turned to several companies for development. I chose the Slotegrator. They offered better conditions. Games selected from the developers: microgaming, habanero and some else

Online-casino - is a complex object. For every part of it You need to pay special attention, if You want to make a casino works like a swizz watch.
There may be some problems with opening online-casino, because You have to talk a lot with lots of providers in terms of integrating everything You need into Your project.
Online-casino consists of several main parts:
- Platform - 15K$ minimum + percent for its usage (from 3% - till 30%);
- Games - it all depends on the price of game providers and the number of game providers that will be in online-casino. 3 good quality game providers cost, at least - 5K$ - 6K$ + percent every month for the usage of their games (from 10% - till 15%);
- Payment systems - the average percent of using payment system - 5-7% for deposits, depending on the method of payment, 1-3% on withdrawals;
- License - for example such license, as Curacao, costs 20K$ for the first year + 13K$ for the operating payments every year + 2% taxes from revenue.
- Marketing - It is hard to calculate the price, it all depends on the operator's opportunities.
For each point You have to spend some time for negotiations, contracts, etc.
So, as You understand, there may be obstacles on your way to Your success.
We at CASEXE Company helps each of our clients with such tasks. What is more: if You buy our project(s) - we do everything for You, so at that period of time Your nerves might be in safe.
That is it. For getting more information You may contact with managers of CASEXE Company. They will provide all the necessary information for You.

Quote: SergeiTr

Online-casino - is a complex object. For every part of it You need to pay special attention, if You want to make a casino works like a swizz watch.
There may be some problems with opening online-casino, because You have to talk a lot with lots of providers in terms of integrating everything You need in Your project.
Online-casino consists of several main parts:
- Platform - 15K$ minimum + percent for it's usage (from 3% - till 30%);
- Games - it all depends on the price of the game providers and the number of game providers that will be in online-casino. 3 good quality game providers cost, at least - 5K$ - 6K$ + percent every month for the usage of their games (from 10% - till 15%);
- Payment systems - the average percent of using payment system - 5-7% for deposits, depending on the method of payment, 1-3% on withdrawals;
- License - for example such license, as Curacao, costs 20K$ for the first year + 13K$ for the operating payments every year + 2% taxes from revenue.
- Marketing - It is hard to calculate the price, it all depends on the operator's opportunities.
For each point You have to spend some time for negotiations, contracts, etc.
So, as You understand, there may be obstacles on your way to Your success.
We at CASEXE Company helps each of our clients with such tasks. What is more: if You buy our project(s) - we do everything for You, so at that period of time Your nerves might be in safe.
That is it. For getting more information You may contact with managers of CASEXE Company. They will provide all the necessary information for You.

Sounds cheap so far. Let's be honest and tell us what the marketing costs really are if you want to all but guarantee success? What if you live in the USA and own an online casino?

Quote: Wizard

I have would budget at least half a million USD to do a White Label Internet casino. You should consider this expendable money that won't bother you if no players find your casino among the hundreds of others out there.

I would like to correct myself. For a premium White Label, it costs about 50,000 Euros to develop the casino. Expect to pay more if you want to staff it yourself, which you should. Then there is the cost of advertising. There are economy White Labels that cost much less. I've seen them as little as $1,000. However, how you find customers seems to be the bigger problem.

Talking about marketing support/ online-casino promotion. Unfortunately, I can not tell You how much You will need. Our platform has already had a number of built-in tools that facilitate operator's work much more on the promotion of an online-casino project (this is SEO module, player's management, working with a website content, module of affiliate programs, etc.). In addition, we provide operators with contacts of experts and companies that specialize in the promotion of online casinos - from complex solutions to individual specialized areas.

As a minimum, operator has to integrate/ connect with affiliate prorgam. We are working with, f.e., PostAffiliatePro. You may see their prices by entering their website (price starts from 97$/ per month).

There are casino scripts even for 200-300$. What do people expect to have by buying such projects? To make such casinos workable, operators, eventually, will spent thousands of dollars more so it will be even more expensive to start such project rather than take a project from a proven online gambling software developer.

Today, You do not get a normal online casino cheaper than for 15-20K $.

What is more: it will cost several times more, than 1K $ only to connect original game providers of middle segment to a project.

Quote: BricksandMortar

Hi All,

I wanted to firstly thank you for taking the time to read this.

I am thinking of creating my own online casino and wanted to ask for your
advice and input, as to how much such a setup would typically cost online.

I have done research into companies such as SoftSwiss casino, who have
provided a costing of 30,000 Euros.

SoftSwiss have advised this cost covers a gaming platform with CMS and a
powerful backend that I have full control of, 40 casino games by Softswiss
and 150 games by BetSoft, website design and development, gaming license
and an infrastructure of payment gateways.

SoftSwiss also charge recurring costs of royalties in the amount of 15% of
Net Gaming Revenue starting from the first month of operation.

Do you think the above figures sound fairly expensive, or at a reasonable rate in
your opinion?

I have looked at other avenues of launching an online casino but SoftSwiss
is (so far) the only one that I have come across. In your view, would you
be able to recommend any others or have you come across any other online
casino developers that provide a superior service for a cheaper price?

I am quite new to the industry and am looking to gain an insight into the
approximate costs involved with setting up an online casino from scratch.

Thank you for taking the time to read this.

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