The launch of an offline casino requires serious investment and time expenditures, as well as a deep understanding of the specifics of the market. At the same time, the offline gambling sector remains one of the most profitable business areas, along with IT, biotechnology, and finance. Therefore, thousands of entrepreneurs annually strive for opening profitable gambling establishments.
It is almost impossible to bargain on all the pitfalls of the industry but it is quite possible to get acquainted with the basic knowledge of how to launch a project.
Analysis of the Legal Framework and Licensing
Doing a gambling business always starts with the selection of a specific tax jurisdiction where land-based casinos will operate.
A feature of the operation in the land-based sector is that a gambling establishment should be located on the territory of the country that issued the permit. In the case of the online segment, there are nuances, thanks to which the gaming site can work in the online space of several regions simultaneously.
Before you launch a land-based casino, it is important to analyze the legislation of the selected country. There are several key points:
Conditions for the Acquisition of a Permit
Each jurisdiction has its own requirements related to casino licensing:
- Most likely, an entrepreneur will have to register a company and open commercial accounts in local banks, rent an office, and take care of the certification of the equipment and software.
- You also need to have a financial guarantee, the size of which varies depending on the country. In Ukraine, for example, it is 30 million hryvnias.
- The list of requirements often contains a clause about the working experience of the founders of the company and its staff.
To obtain a permit, applicants should prepare and send to the commission a complete package of documents that confirm their financial well-being, the registration of the company, and legitimacy.
Time Frames and the Cost of a License
These options vary depending on the country. At the same time, a casino license cannot be cheap, taking into account the high profitability of gambling. The more prestigious is the jurisdiction, the more expensive is casino licensing.
How often an offline casino will have to update its portfolio of documents and pay contributions depends on the validity of the permit. The best solution would be to choose a country where a license is issued for 5 years or more.
Taxation System
Anyone who decided to open a land-based casino in one of the offshore zones can count on good benefits. In such well-known jurisdictions as Curacao, Costa Rica, Kahnawake, and the Isle of Man, the total annual tax rate does not exceed 5%. There are no deductions to social insurance funds, as well as corporate taxes and ownership fees.
As for the launch of an offline casino system in European countries, the tax stakes are much higher:
- In most countries, a profit tax of 18-40% is paid. The exception is Bulgaria where, since 2020, they apply the rate of 10% of the turnover.
- Many countries provide additional fees for each piece of equipment installed in the gambling club. Slot machines, tables for card games, tables with roulette, and other entertainment equipment is subject to taxation.
Search for Suitable Premises
The legislation of each country provides requirements for the location of the premises of a gambling club. Most often, the institution should be away from schools, hospitals, kindergartens, and other social institutions. On the other hand, the premises must be in a busy and well-traveled place, which would guarantee a steady flow of visitors.
Many states allow gambling only in special zones. The most famous project is American Las Vegas. It is also prestigious to open land-based casinos in Macau, Singapore, and Cheju. Starting the business here, operators can be sure that it will be profitable but, at the same time, the entry threshold to one of the above-mentioned zones is very high.
Six gambling territories have been opened in the Russian Federation. As a rule, they are located next to the places where there are many tourists, and it attracts an additional audience.
Certain demands are laid down for the internal configuration of the premises. They are related to the separation of zones for visitors and staff, the presence of the ventilation system, water and heating facilities, and compliance with fire regulations.
The launch of the casino is associated with a large-scale indoor repair job. Even if the plans include a simple redecoration, in practice, it will result in a huge item on a budget.
Gambling: the Selection of the Equipment
This is a key moment in the process of launching a gambling project, and the return on investment depends on it.
All equipment can be divided into two categories:
- Standard devices. These are computer and administrative equipment, cash registers, and other equipment, which is necessary for the unimpaired operation of any land-based casino.
- Gambling equipment. It includes servers, modems, “one-armed bandits”, consoles, lottery terminals, and other devices.
Regulators lay down strict technical demands. The manufactured dates and the last testing of each unit are carefully checked. Devices that come with a random number generator must undergo additional certification.
The best solution for operators is to buy new equipment from the world’s leading suppliers with a good reputation. This approach will help them to avoid a lot of problems in the future.
When launching a land-based casino, it is necessary to take care of purchasing specialized furniture. These are tables for poker and card games with the built-in roulette. It will be almost impossible to work without them if an operator is planning to receive decent money.
Software
Just like in the case of operation on the Internet, land-based casinos cannot fully exist without the well-thought-out software.
The software must have different access levels:
- One-time visitors will receive one access with certain bonus features, and VIP players will have advanced features.
- Even more, options can be provided for the administrative panel. It includes the control of gamblers, reporting, and financial forecasts for future periods.
All this can be achieved by integrating a modern CRM system into the software structure. Forward-minded providers offer software with built-in functionality.
Search for the Staff
The minimum staff includes administrators, croupiers, dealers, and support staff. It is also worth taking care of hiring a competent lawyer, accountant, and marketer, although, these functions are often outsourced.
If you are planning to place a bar in a gambling establishment, then you will need to additionally hire waiters, bartenders, and a barista. In this case, you will need special equipment (a coffee machine and a cocktail machine), as well as a license for the sale of alcoholic beverages.
Promotional Marketing
This is a serious item of expenditure, especially when you have just launched a casino. As we have already mentioned, the services can be transferred to outsourcing companies or you can hire the staff of marketers by yourself.
Much depends on the professional competence of the hired specialists because it is important for any casino to quickly attract the target audience. To this end, large-scale advertising campaigns are organized, special offers are arranged, and all customers are provided with the extended bonuses to all customers. If the owner has a big budget, he will be able to become a sponsor of a popular event in the world of iGaming.
Conclusion
To launch of a land-based casino is a meticulous work that includes a lot of main and additional stages. It is necessary to foresee everything, from the choice of premises to marketing. Special attention needs to be paid to casino licensing. This is a complex and expensive procedure, and it is better to entrust it to professionals.
Casino Market is your reliable assistant in all matters related to the opening of an offline casino. From us, you can order the gambling equipment and flexible software and get legal and advertising support.
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