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The Transition of Land-Based Gambling Business to the Online Environment

24 april 2020
Online casino, Land-based solutions
Author: James Burton
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Despite the widespread distribution of online projects, ground-based establishments do not lose their relevance in the USA and many countries in Europe. However, the coronavirus epidemic disturbed the plans of many operators. They were forced to look for new ways to develop their projects and ensure the stability of their business.

That is why the theme of creating digital fall-back options for offline operators is unusually relevant today. The main issues worth considering are legal regulation and search for reliable partners. The Casino Market team will help you figure out the essential nuances.

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Legal Aspects

Legal aspects of gambling

The land-based gaming industry has many prospects for development in the online space. For example, the government of some states creates favourable conditions for operators from the ground-based sector.

Wolfgang Bliem (CEO of Grand Casino Luzern) says that only owners of land-based establishments can obtain licenses for online gaming activities. Grand Casino Luzern managed to become the first online operator in Switzerland. 

The parallel development of offline and online business guarantees stability. In the event of an unforeseen situation, entrepreneurs will not lose their sources of income. A loyal audience will pay more attention to virtual platforms and continue to bring high profits.

The situation in the US differs from the peculiarities of the Swiss gambling business. Seth Young from PointsBet claims that a large number of illegal betting services appear in the USA every day. This situation is visible today when the number of sporting events and offers from legal bookmakers has sharply decreased. Dishonest entrepreneurs try to lure the audience in any way. 

Therefore, the key factors ensuring a stable transition of the offline business to the online space are as follows:

  • ensuring optimal taxation conditions;
  • adherence to fair play principles;
  • countering fraud and money laundering.

Improving regulatory standards will help reduce the number of illegal virtual establishments. At the same time, the process of adapting ground-based projects for the online environment will become simpler and faster.


This issue is critical for many businessmen working in the ground-based segment. Opinions of experts on this subject differed. Some specialists believe that the tax rate for online entrepreneurs should not be too low. At the same time, the amount of tax should be adequate. Such conditions will allow more legal operators to enter the market and provoke healthy competition.

However, Wolfgang Bliem claims that a high tax rate helps to control the legitimacy and honesty of operation. High taxes will prevent money laundering. Besides, the higher the withholding rate, the more efforts will be made by a businessman to make big profits. An interesting fact is that the contribution rate for online operators in Switzerland makes up from 20 to 90 per cent.

Customer Protection

Much attention is paid to this issue both in Europe and in the USA. The fact is that the quality of consumer protection and adherence to the principles of fair play affects not only the legal aspects. These factors also form a positive image of the company.

Users trust the owners of land-based establishments that are offering transparent conditions for players, protect financial transactions and their data. This peculiarity will allow you to switch to the virtual segment in the shortest possible time.

It is also worth noting that the subject of illegal financial transactions and money laundering is extremely relevant for the gambling business in the United States and Europe. For example, the Swiss government controls local operators rather strictly. Dishonest entrepreneurs may even lose their licenses.

Search for Relevant Content

Rise of an online gaming area

Ground-based and online betting, as well as offline casinos, suffered significant financial losses during the quarantine. However, the online gaming area continued to attract users and increase its revenue quite actively.

Therefore, the search for new content is a crucial area of work for land-based operators now. Bookmakers found themselves in a rather difficult situation during a pandemic. 

Expanding business and searching for new ideas is an excellent solution in this situation. There are many examples of the successful combination of online poker, casino games, and betting services within one resource.

However, the transition to a new format of activity is a rather tricky process. Kresimir Spajic notes that only companies with huge budgets can afford to grow in the online area on their own. Firms with modest capital should seek the support of reliable intermediaries to protect themselves from financial losses.

Experts believe that the adaptation of ground-based projects to the online format should take place in several stages:

  1. Defining goals. It is necessary to assess the state of your business adequately and determine your aims for the future. If you do not have much experience or a significant budget, you should not try to cover too many directions. For example, the main goal of novice businessmen should be in attracting customers and creating a positive image, rather than making big profits.
  2. Search for the optimal format of work. Having evaluated your current state, you need to choose the optimal work format for your company. It is necessary to study the available market offers to make the right choice.
  3. Selecting proper content. You need to cooperate with experienced and reliable providers that are ready to propose suitable content. Remember, the reputation of your brand depends on the quality of gambling software.

Free and Real Money Games

As already mentioned, earning money is not the primary goal of many operators. Building a good reputation is a crucial task for entrepreneurs. That is why many businessmen launch online projects with free games (so-called social games). Such an approach will help operators attract a broad audience and gain the trust of players.

The development of real money games is beneficial for well-known companies that want to increase their income by starting to work in a virtual field. The combination of free and real money entertainments will help you cover different target audiences.

Offline operators are doing their best to attract a new audience on the Internet. For example, Hard Rock Casino (Atlanta) provides the opportunity to play slot machines in a real-time format. 

How to Choose Decent Providers

Undoubtedly, the selection of worthy business partners is a very responsible task. Businessmen should pay attention to the following criteria:

Recognition of the manufacturer

The popularity of providers plays a critical role here. Companies with large budgets will not start cooperation with little-known brands. This is quite logical. Brand recognition testifies to its excellent reputation

Stability of the brand

The stability of a company is even more important than its popularity. Some vendors, working in specific niches of the gambling business, are known only in narrow circles of businessmen. However, they produce really high-quality products

Assortment of games

Undoubtedly, providers must have the most relevant high-tech solutions in their arsenal. The world of digital technologies is developing rapidly. That is why it is crucial to monitor the evolution of the gaming business

The Casino Market team will help you to choose the most suitable software provider for your business.

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The Role of Competition

Competition between gambling operators

Switching ground-based activities to the online market imply the emergence of a large number of competitors. However, this is an extremely positive phenomenon, that may bring lots of benefits to both businessmen and players.

The fact is that the absence of competition leads to stagnation. This applies to the land-based business too. If entrepreneurs do not compete with each other, they cannot offer interesting products to players.

At the same time, the interest of players can decline rapidly in these conditions. Outdated projects will not catch anyone’s attention. That is why they are often looking for new entertainment in the underground field of the gaming business.

Healthy competition helps the owners of gambling platforms analyse the strengths and weaknesses of their rivals. Such an analysis can let businessmen find the right path for the further development of their online and ground-based projects.


The rapid growth of advanced technologies dictates new rules for the gambling business. Undoubtedly, operators, working in the land-based sector, should develop their online projects. The COVID-19 pandemic confirmed the fact that many companies were not ready for the sudden closure of their offline establishments.

It is essential to find a good partner that will ensure the successful launch of your project in the online space. Casino Market has been working in the field of virtual gambling for many years. We provide a wide range of services, ranging from legal and financial counselling to the creation of attractive websites.

Turnkey online casino development includes a whole package of services needed to start a successful business.

If you want to learn more about this or other offers, please contact our manager:

  • Skype: support.casinosupermarket
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  • the feedback form.
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