How to develop the online casino business plan
The online gaming industry has got an explosive growth over the recent years. As the gaming projects profitability becomes obvious for the investors, the Internet casinos are developing at the rapid-fire pace, bringing their owners the immense revenues.
Any casino business is always based on some plan, where the general strategy and financial matters are provided. Casino Market provides the detailed consultancy and support with the required turnkey solutions on the casino business plan and other elements needed to start a gambling project.
The scale of the Internet-based services share is impressing, as it includes potential users from the whole world. An online gaming platform is available everywhere, which facilitates to their extreme popularity.
However, huge profits cause stiff competition. A smart business plan for the online casino is a key needed to win this struggle. This plan allows outlining the main strategy of your project leading to profitability and performance increase.
Therefore, if you want to develop a successful casino project, you should place greater focus on the development of the business plan in order to make it correct, effective, and comprehensive.
Though the profitability of online gaming platforms has the promising potential, the improper organization or poor management of such projects can lead to considerable losses.
This is the reason why the online casino business plan should be aimed at the elimination of any potential failures and thorough elaboration of the strategy.
Each stage of the business development presupposes some problems and pitfalls, which you should overcome. All these points are to be clearly defined, and possible clear solutions shall be provided for them. In this way, the risk of unforeseen expenses and other potential problems can be reduced.
As the gambling business becomes forbidden in many countries, it gradually shifts to the web. There is a huge army of potential inveterate gamblers, which are always ready to try out some new and high-quality gaming content. Huge amounts of money are spent on such activities every day.
Opening the online casino shall start with making a business plan. Get a professional consultancy of the relevant specialists in order to be informed on the particular specific features, which may arise in the process.
To develop a business plan, take as a basis any standard template. There is a lot of such samples on the web.
However, you should remember the basic features of the electronic commerce services and the casino industry, which constitute the idea of the online casino business. Take into account all these aspects to have a clear and comprehensive vision of your project.
Before taking any steps to implement your project, make sure that you can raise the required sum of the initial capital. This capital may constitute your own funds or raise outside investments.
If raising the investments, the online casino business plan should be a kind of justification of the project profitability. It should be convincing enough to make sure your project is really worthy of any investment.
Then make all the necessary calculations and all types of analysis needed to launch the business project. When it is done, draw the consolidated summary on the key issues.
The online casino business plan should start with the general industry overview. It should be based on the detailed answering the following questions:
- What is the casino in terms of business organization?
- What is the gaming industry in general?
- Which products and services are provided within the industry?
- Describe the economic background of the gambling industry.
- Provide the basic factors of the gambling industry growth.
- Present a list of the countries providing the best conditions for such startups.
- Describe the regional casino markets around the globe.
Then present the basic information on your website platform. The general information of your project should be provided here considering the above-mentioned points in the gaming industry description. Think about your project in the context of the global markets and draw the relevant conclusions.
Describe the kind of services you are providing. Indicate the facilities needed for this, including the extended list of the relevant equipment and programming products. What about the Internet platform, servers, type of connection etc?
Here, the standard business vision of your project shall be presented.
Describe the mission regarding your business.
The organization structure of the business includes the scheme of the main positions regarding their responsibilities:
- chief executives;
- marketing specialists;
- technical support specialists.
Include all the positions you have to employ in this description in order to provide the appropriate planning.
Online casino startup launching requires the work of the extended team of different specialists: programmers, designers, financial and layer advisors etc.
As the online casino services are provided 24 hours a day, the business plan should indicate the work of several personnel shifts. These specialists provide the technical support, payment and marketing services etc.
This chapter should contain the extended presentation of the responsibilities per each position. Start with the chief executive and proceed with other positions.
Economic and marketing analysis
One of the most effective types of economic analysis is the SWOT analysis, as it helps to provide the general vision of a company in terms of its potential strength, weakness, opportunities, and threats.
The sample of possible basic characteristics regarding the Internet casino is presented below.
- Strength: the availability of the internet platform to all categories of users around the globe; provision of the state-of-the-art gaming software.
- Weakness: significant dependence on the need for high internet security and connection reliability tools, high probability of hacking attacks etc.
- Opportunities: increasing the number of users by means of effective promotion and management, entry to the new markets.
- Threats: an unfavourable policy of the government of the country housing the casino servers, demographic and social changes, economic slowdowns etc.
Then proceed with the marketing analysis, describing the main marketing trends of the industry, distinguishing the target market of your project. Present your competitive advantages and the marketing strategy based on the relevant analysis.
- Which marketing activities would be developed and implemented?
- What media to be used in terms of advertising?
- What loyalty programs and bonus systems would be provided?
Build up the detailed program of your marketing strategy taking into account all necessary elements.
The Internet casino shall have a good promotion, and this requires significant investments. The relevant ads are arranged on different gaming-themed websites and greatly contribute to the extension of gambling projects popularity.
The casino marketing should cover maximum age categories of users because the population of the different countries has different mentality regarding the gambling activities.
The maximum level of revenues you should aspire to is ten million dollars per year, however, it is not easy to reach this amount. At the same time, the average period of investment return is a year and a half.
The key point regarding the marketing policy that every casino startup owner should bear in mind is the exclusive and unique character of the products to be distinguished regarding the competitors.
The diversity of content, loyalty programs, and attractive bonuses are the basic tools to improve the opportunities of your gaming business.
Basing on the economic and marketing analysis, state the anticipated values of revenues per each year. See what to expect within the period of 3 years and make calculations.
Present the detailed financial planning and the cost statement regarding each item: license and Internet platform acquiring, software integration, security provisions, personnel salaries, incomes, taxes are to be calculated and listed with the corresponding cost figures.
Regarding the points requiring the highest expenses, license acquisition and the software developments, some considerations are presented below.
The online gaming business is often registered at the offshore jurisdictions. For example, Costa Rica is one among the cheapest jurisdictions, requiring the simplest registration form for several thousands of dollars and no additional taxes.
The experienced specialists provide assistance in registration, however, the turnkey development results in some additional cost.
Apart from registration expenses, purchase of the high-quality software is also a valuable thing. But any casino should propose the best products of the industry for maximum users attraction.
Novomatic, Microgaming, Playtech and other software providers are well-known all over the world and are widely for such projects.
The last section of the online casino business plan shall present a checklist on the key milestones description to follow up the progress and the development. The steps are marked with the corresponding status, whether completed, in progress, or just planned as the next step.
Casino Market specialists provide the assistance for the Internet gaming projects in terms of the business plans elaboration, turnkey solutions on different technical issues etc. Contact Casino Market and purchase the high-quality products with a professional consultancy.