Table of Contents
- How to Build Online Casino Business
How to Build Online Casino Business
Online gambling (iGaming) is a lucrative industry which has proven itself a complicated yet rewarding market to maneuver. In 2021, the global iGaming market was estimated to be worth US$53.7 billion. Even as Covid-19 measures rolled out across the world and revenues of brick-and-mortar casinos fell, iGaming platforms scaled at an unprecedented rate with the advantages of technology without bearing the cost of physical locations. It is no surprise then that by 2027, the iGaming market is expected to be worth a staggering US$ 127 billion.
Asia an Untapped Market
While iGaming operators have typically focused on the Americas and Europe, Asia and the Pacific is proving to be the next big market to watch, worth an estimated US$ 16.6 million in 2021 alone. The developing economies of Asia in particular, have proven to be full of opportunities, with 40 million first-time users of iGaming sites recorded coming from Malaysia, Vietnam, Singapore, the Philippines, Indonesia, and Thailand alone in 2020.
Although access and use of online gambling sites remain in gray areas for users in most Asian countries such as Vietnam, Indonesia, and Malaysia, the time is ripe for daring entrepreneurs and businesses to seize the opportunity of the Asian iGaming market with the region’s rapid digital adoption, paired with the opening up of governments to the legislation of iGaming.
It is also easier than ever to build your very own iGaming platform. You can find software providers that fully custom design your platform and games to meet your every need (albeit at a high price), to equally powerful white label solutions where everything from web or app development and customer support is taken care of (typically within reachable budget).
Excited to get started on your iGaming empire? Here are the 3 stages to establishing and running your own iGaming Platform.
STAGE 1: PLANNING
Creating your own iGaming platform is a significant investment of time and money, which when done right, can yield highly lucrative results. Like with any venture, laying a strong base and having a clear plan will ensure that your iGaming platform is a success.
Define Your Target Market and Positioning
As the popularity of iGaming grows, new iGaming platforms are popping up on a frequent basis. Setting a positioning and focus market is key to creating your iGaming platform and brand. This is important in helping you determine everything from the user interface design, which games to feature on your site, to languages offered, and even payment options.
If the target market of your iGaming platform is Vietnam, you could set your platform apart from others in the Asian region by offering betting games which are popular amongst Vietnamese, such as cockfighting and fighting fish.
User behavior and preference can vary greatly from market to market, being able to narrow down your target market can ensure that you create an iGaming platform which offers localized products and services to users in your target market.
While building your own platform from scratch may enable you full freedom to develop according to your target market, it will take market research and even local knowledge of culture to create a platform targeted for your market. Do not overlook the importance of researching what your market needs.
What gap would my platform fill?
How can I differentiate my platform from other competitors?
What games can I offer that will attract users?
Consider other competitors in the market:
What are their offerings?
How user-friendly is their website?
Are there any unique platform features?
How are they marketing to their audience?
On the other hand, it might also be wise to consider white label solutions. Some providers, like Kzing, have been in the iGaming development scene since 2012, and use their data collection and reporting system to better understand the markets. With this, they are able to offer custom white label packages with specific features for different markets. By leveraging the data they have, you could easily determine the best market to launch your platform and create unique selling points that meet the demographic needs.
Establish a Budget
Next is to flesh out the two large sums of your online casino business plan.
(i) working capital
Starting costs will mainly consist of engaging an iGaming provider (build your website) or engaging a white label provider, and even pre-launch marketing.
Important Costs in Setting Up an Online Casino:
Software Development – US$ 200,00 to US$ 300,000
(ii) operational costs
Realistically, your business will take time to turn a profit. Prepare a reserve to run your platform for at least 12 months. If building from scratch, this means being able to pay for everything from web hosting to software support, customer service staff, marketing, payment processing fees and more.
Important Costs in Running an iGaming Platform:
- Marketing and Advertising – US$ 15,000 to US$ 100,000 monthly
- Payment system fees – US$ 20,000 to US$ 30,000 monthly
- Customer Support – US$ 21,00 monthly
Overall, building a platform from scratch can cost up to US$240,000 or more, while marketing and hiring staff members to run your platform could range anywhere between US$ 56,000 to US$61,000 monthly.
If the high capital of building your own is not an option, going with a white label provider is an equally viable path. White label packages can cost between US$1,000 to US$ 10,000 or more, depending on the range of their products and services.
With white label solutions, you save time and money by picking from a pool of ready themes for your website, games or sports-betting options, and even affiliate marketing systems and channels. With this, it is even possible to get your iGaming platform up and running in a matter of weeks.
You can also put hiring a large team on the backburner, with many white label providers offering software and customer support in their packages as well, in return for a share of the revenue. With this method, all you have to focus on is marketing to grow your platform!
STAGE 2: BUILDING
Once you have decided to engage a developer or provider, this is the stage where things really get going.
Develop the Online Casino Platform
Your site is essentially the ‘building’ of your business. Like when a visitor walks into a casino, the key is to build a platform which is easy to navigate – from where users can go to register, deposit and get their chips, to getting on the floor to browse tables and games, and finally, even receiving membership perks and promotions.
Your online casino will consist mainly of a website/front-end, which is what users will see and interact with, while a software/back-end is what goes on behind the scenes to run your platform.
iGaming platform general structure:
- Website (front-end, UI/UX) (like your casino lobby, floor etc.)
- Games/offerings (popular casino selections like Roulette, Baccarat, Poker/ horse-racing, football etc.)
- Platform management (back-end)(payment system, fraud detection, hedge monitoring and risk control etc.)
Depending on your budget and needs, you can opt to build your platform from scratch by hiring a software developer, and working with game providers to offer games on your site. The fully-customisable approach is the best option if you want to create a unique platform and set of offerings.
White label providers essentially offer you a platform with features and services that are repackaged to your brand and market, along with partner providers’ game offerings. The white label solution is perfect if you want to build your platform without the time restraint and high investment of starting from zero.
Either method you choose, here is a checklist to note when developing your iGaming platform:
- Good selection of games and offerings which appeal to your target users
- Diverse payment method options (online banking, credit card, e-wallet, cryptocurrency etc.)
- Availability of multi-currency payments
- Multiple language options
- Front-end design which represents your brand and appeals to users
- Easy to use backend for effective management of your business
- Customer relations management (CRM) system
- Robust security and risk management
- Customer support
- Tech support
- Mobile-friendly website or possibility to develop mobile application
Of course, depending on your target market and demographic, additional features should also be considered. This is when research and knowledge of your market (as discussed in Stage 1: Planning) is important.
According to local knowledge that Thai users are more keen on discounts and supported by data gathered on their platform, white label provider Kzing offers a rewards system as part of their platform package that will enable you to run events like discount campaigns on your platform.
Again, weighing your needs and resources, the white label approach could help you leverage on the expertise and experience of providers. Make use of their full range of products and services to build an iGaming platform that meets the needs of different markets.
Pre-launch Marketing and Advertising
The goal of the pre-launch strategy is to get as much exposure for your platform, reach the right audience, and offer them perks to take action. Pre-launch marketing and advertising can set the stage for a successful launch.
To plan the right strategy, here are some key concepts to get started:
Pay-per-click (PPC) advertising – this form of advertising typically involves digital display ads like banners, videos and even social media posts displayed on websites, social media channels, and in-app advertising. The idea is to place your ad in front of as many relevant users as possible, and get them to click on your ad (you pay the marketing channel, such as Google or Facebook with each click gained). Although usually effective at helping your brand gain exposure, a clear user journey is important to hit your targets – what are the actions you want potential users to take, starting from seeing your ad to becoming a player on your platform?
Call-to-actions (CTA) and Perks – CTA is a behavior or action that you want your potential user to take, with some form of a perk or benefit that will encourage them to complete the action. They can be designed for different stages leading up to the launch. In the early stages, it might make sense to prompt potential users to sign up for email updates or even join a group chat on platforms like Discord or WeChat (depending on your audience) to start forming your community. Closer to the launch, it might be more effective to offer immediate perks like free credits when users pre-register or even make early deposits.
Affiliate partnerships – fast becoming the most effective way for iGaming platforms to reach audiences. Work with key opinion leaders (KOL) who have a following within your target market to generate a first wave of potential users who will then attract others. Commonly effective methods include allowing affiliate partners early access or demo versions of your platform to create hype before the launch, and perks for bringing in players. This is where having an iGaming platform with a proxy system can give you the ability to assign roles, monitor progress, and reward your affiliate partners to ensure transparent management and encourage collaborations.
Not limited to the above areas, the possibilities and options of marketing and advertising your platform are countless. Whether you intend to do it yourself, hire a team, or engage a marketing agency, pre-launch marketing is a step that should not be missed when and can work wonders in ensuring that your iGaming platform takes off!
STAGE 3: LAUNCH, MAINTAIN, GROW
If you have made it to this stage, then the next important thing to remember is to keep your players happy. First impressions will matter, and keeping a long-lasting relationship going will ensure that your platform goes no way but up.
At launch, invest in having tech support on hand and ample customer service representatives available. Your platform needs to be able to handle the influx of users and any problems which may arise.
Tech support – The performance and user experience of your platform can make or break your iGaming business. Problems such as slow page loading, payment failures, games buffering, or every platform’s nightmare –crashing– could spell the end before you even get started. Although it may not be completely trouble-free, ensure that your site and system performance is monitored frequently and any issues which come up are fixed quickly to avoid losing users.
Prepare your site before going live:
- Invest in a good website host
- Ensure your site is up to date
- Monitor site performance
- Run website tests
Website issues can also be caused by malicious attacks from hackers or bots trying to access user information or steal from your site. Make sure that your platform has a robust security system to keep users and your resources safe.
Customer support – Ensure that users can easily find help on your site when they need it. On top of ensuring that your website is clear and easy to use, do not forget to have frequently-asked-questions (FAQs) on your site, and more importantly, a 24/7 helpdesk to answer user questions and handle any issues they may have. Nothing leads to more frustration and a loss of customers than poor customer service.
Once you have a steady stream of players, growing your platform and user base will come down to retaining players and keeping them interested.
Customer retention – loyalty and reward programs are a great way to keep players coming back for more. Reward your platform players with free credits, lucky draws, free spins, cashback, signup or deposit bonuses, and more. Do not be afraid to get creative in keeping your users happy and motivated. There is a reason why experienced white label providers like Kzing have a gamified membership system with different player levels, rewards system to hold events and discount promotions, and even a rebate system for platform partners – they are proven effective in retaining players!
Future growth – information is king in this day and age of economic advantage. Be it which games users spend most of the time playing to payout frequency and even method, your platform should be equipped with a data reporting system which can help you monitor and gather user behavior which will help give insight into what new games and offerings to develop, which aspects of your iGaming platform works best, and even which features should be added.
KEY TAKEAWAYS TO BUILD YOUR iGAMING PLATFORM
- Define your target market and positioning to form a brand and develop selling points which set your casino site apart from competitors.
- Develop the platform with a front-end focused on user-friendliness, speed, and accessibility, and a comprehensive, stable, and reliable management system.
- Carry out pre-launch marketing and advertising through channels like PPC, affiliate partnerships and more.
- Keep players happy from launch by ensuring your site runs smoothly and their issues are solved with round-the-clock tech and customer support.
- Leverage on data and information to design reward events and new games to retain customers and determine future growth.
CONCLUSION – WHY BUILD YOUR iGAMING PLATFORM WITH KZING
If you’ve made it this far, chances are you already have a good understanding of how an iGaming platform is built and launched. The process may seem daunting to take on all alone, which is white label providers like Kzing can help get you started in the exciting market of iGaming in Asia without starting from zero.
Kzing’s professional white label solution services includes:
- Stunning templates for your platform which can be applied across desktop and mobile, along with mobile applications for iOS and Android.
- Network of game providers to bring you a great selection of games
- User-focused system which can optimize user experience by analyzing user activity and anticipating their behavior and preferences
- 24/7 security and defense system for platform safety and stability
- Multiple languages, currencies, and payment channels (including cryptocurrency)
- Proxy system, with traditional agent model or universal agent model
- Intelligent risk control to protect your business interests.
- Clear reporting and data analysis system
- 24/7 operations and maintenance service, dealing with technical or customer issues to reduce unnecessary loss of users
With such comprehensive services, all you have to do is focus on branding and marketing, and let Kzing handle the rest! Ready to launch your own iGaming platform? Check out all of Kzing’s products and offerings here or reach out for a free professional consultation to help you get your iGaming platform started.