Online gambling is gaining immense popularity in the US, with statistics showing that the market size reached around $10 billion in 2023 and is expected to hit $20 billion by 2032. These figures show that the industry has endless revenue opportunities, and investors willing to start online casino businesses can reap big.
However, starting a gambling business is a tedious process that requires meticulous planning, attention to detail, and strict adherence to regulatory requirements. For this reason, we have prepared this guide on how to start an online casino to help you understand what it takes to start a casino business.
The Cost of Running an Online Casino
An online casino is just like any other business, which means you need to invest money upfront. If you plan to start an online casino on your own, you can use your personal funds. However, if you lack sufficient capital, you can involve investors and operate the business as a partnership. Keep in mind that a new business might take a few years to show meaningful results, so patience is key.
The cost of starting an online casino, whether as a sole proprietor or partnership, depends on many factors. If you start an online casino from scratch, you will spend more money than you would have spent while using White Label Solutions. A gaming platform with many providers will also cost more than a site with a few providers.
Generally speaking, you will incur two types of costs:
- Pre-launch expenses are all costs that go into the first stage of casino development. These include software setup expenses, game content, licensing procedures, employees’ salaries, legal fees, and overhead costs such as electricity, rent, and insurance. Some regulators may also require you to have a certain amount of deposits to pay out players’ winnings.
- Post-launch expenses, on the other hand, are expenses that go into the second phase of casino development. Marketing and promotion are the most expensive items at this stage, as they consume almost half of the total expenses. Other expenses you can expect include loyalties to game providers, license charges, and remunerations.
The following table shows estimated costs you can expect to incur:
| Expense | Estimated Cost (% of the total cost) |
| License & Legal Fees |
10-30% |
| Website Development |
25-35% |
| Game Software |
5-10% |
| Payment Solutions |
5-15% |
| Hosting |
10% |
| Security Costs |
5-10% |
| Marketing |
50% |
| Staff |
20-30% |
| Other Costs |
5-15% |
Starting an Online Casino with Turnkey or White Label Solutions
There are two ways you can start your first online casino – through White Label and Turnkey Solutions.
White Label
White Label Solutions allows you to start your online casino site with ready-made services. In other words, the casino platform is already made and all you need to do is to purchase it. White Label companies, such as Slotegrator, provide everything you need, including the casino platform, casino software, technical support, and payment gateways.
Your main job as the casino operator is to market the brand to potential customers. You are also responsible for creating the logo and the name of the casino. As you can see, the success of your White Label casino depends on the provider you pick. It is important you choose a licensed provider who is capable of providing a wide range of games, safe payment methods, and a user-friendly platform.
Pros:
- Minimum investment
- High-quality customer support
- No need to worry about big wins
- The development takes a short time
- No need to solve technical issues on the site
- No need to enter into an agreement with every software provider
Cons:
- Fixed list of settings
- Less control over building the site
Turnkey
Turnkey casinos, also known as standalone casinos, are self-owned casinos built from scratch and let you manage daily casino operations. These casinos come with unlimited customization opportunities, allowing you to design the platform the way you want. For instance, you can partner with the software providers you want, integrate your own payment gateways, and handle all technical issues. You are also responsible for handling all legal aspects such as acquiring the iGaming license.
Pros:
- Scalability
- More secure
- Full customization capabilities
- Have more control of your casino software
Cons:
- The development can take long
- More expensive than White Label
- The operator must enter into an agreement with every software provider
10 Steps to Creating Your Own Online Gambling Site Yourself
This section provides insights on how to start an online casino in the US on your own. The process has 10 steps, including the following:
Legal Research & Licensing
Each state in the US has laws and regulations governing online gambling, so it is essential you do research and understand all the legal requirements.
Business Plan
You need to come up with a strategic document outlining the business goals, strategies for achieving the goals, and the timeframe.
Secure Funds & Financial Management
Coming up with a budget and defining how you will fund and manage it are important steps you shouldn’t overlook.
Choose your Casino Software
It is also important you pick a reputable software developer who creates games with high RTPs, stunning graphics, and exciting themes.
Game selection
To attract as many players as possible, you need to offer a diverse range of games from reputable software providers.
Hire a Team
You need to hire professionals who will help you run various departments, including finance, marketing, customer service, and security.
Website Design
The website should be well designed so that players can easily navigate through it.
Payment Solution
Your casino platform should support a wide range of payment options for making deposits and withdrawals.
Site Security
Players’ personal data and financial transactions matter a lot, so it is crucial you employ the latest SSL encryption technology.
Marketing & Monitoring Results
Once you are ready to launch the casino, you should come up with an effective marketing strategy that will help you make long-lasting customers.
How to Get a Gambling License
Online gambling in the US is regulated at the state level, meaning that the laws vary from one state to another. Some states have already legalized online casinos, while others haven’t. For this reason, you should check the legal requirements of each and every state before opening a casino.
- For example: If you want to start an online casino in New Jersey, you should first acquire a gambling license from the New Jersey Division of Gaming Enforcement. And if you want to start one in Michigan, you should apply for a license with the Michigan Gaming Control Board.
It is worth mentioning that you can start an online gambling business in the US and run it as an offshore casino site. In this case, you won’t need to acquire a gambling license in different states. Instead, you can buy a license from offshore providers such as the Government of Curacao, Malta Gaming Authority, and Gibraltar Gambling Commission.
Moreover, buying an offshore license from a certain country doesn’t mean that only players from that country can access your online casino. People from anywhere in the world, including the US, can still play games on your site.
There are a few things you need to consider when picking the licensing jurisdiction. If you are a first-time casino operator, you should choose a licensing authority with lower costs. The Government of Curacao, for example, is cheaper than licensing authorities in the US states. The age restrictions and Anti Money Laundering (AML) requirements are also simpler when operating with a Curacao license.
You also need to consider your game content as some jurisdictions allow you to offer all types of games with one license, while others don’t. If you want to launch your casino as soon as possible, you should acquire a license from a jurisdiction with a shorter processing timeframe.
Create a Casino Business Plan
A casino online business requires a business plan just like any other business. Before starting anything, you need to come up with a strategic document outlining the goals you want to achieve, how you will achieve them, and the time it will take. This document is also a necessity for acquiring licenses and attracting potential investors.
A typical business plan would have the following points:
- Executive Summary: This part of the business plan describes the organization of the business, business goals, and the market gap you want to address.
- Management: You need to indicate whether your business is a sole proprietorship, partnership, or limited liability corporation. The staff size you wish to engage should also be indicated here.
- Market Analysis: This section shows how your business fits in the online gambling industry. You should analyze your target market and the competition and then show there is a demand for your product. Additionally, you should indicate your pricing and marketing plan.
- Financial Plan: It is important that you include financial projections in the business plan. For a startup, you can indicate the level of success you want to achieve during the first year.
- Risk management: An online casino business is not immune to risks. You should, therefore, indicate how you are planning to handle different risks such as operational risks, financial risks, compliance risks, and legal risks.
- Responsible Gambling Policy: A responsible gambling policy is important for licensing authorities, investors, and players. These parties would like to see the tools you will put in place to help players suffering from gambling addiction.
Once you have developed a business plan, you can gather your capital and establish the right corporate structure. If you are a first-time casino operator and want to launch the casino as soon as possible, you can use White Label companies.
Secure Funds & Financial Management
This part of securing funds and financial management is already included in the business plan, but it is a crucial step. The question of how much you need to start an online casino doesn’t have a clear answer, but it is always good to come up with a budget estimate.
Once you come up with a budget estimate, you can use your own capital to start the casino business or present the business plan to the bank for financing. You can also secure funds through investors, crowdfunding, and government grants.
After securing enough funds, the next important step is financial management. This involves monitoring, controlling, and protecting financial resources. It is, therefore, important you define your revenue streams and employ the right finance team to manage cash flows and track expenses.
You also need to open a bank account and a merchant account to help manage finances easily. The former is a repository for the company’s funds and lets you pay salaries and other bills. On the other hand, a merchant bank account lets you receive money in various ways, including credit/debit cards and electronic wallets.
Choose Your Casino Software
The success of your online gambling business highly depends on the software provider you have partnered with. Online casino software providers vary in terms of quality, so it is important you do due diligence before collaborating with one. One way to know whether a software provider is trustworthy is by checking their licensing information. The last thing you want is to partner with scammers, so you need to check if the provider is licensed by well-known authorities like MGA.
Offering online casino games with high RTP will also give you an edge over other casino operators. To this end, you should only collaborate with companies that create games with the highest RTP. Microgaming, NetEnt, Play N’ Go, Evolution Gaming, Playtech, Pragmatic Play, and Novomatic are some of the developers known for creating games with highest RTPs. Besides high RTPs, the software companies create games with stunning graphics, juicy bonus features, and engaging themes.
Technical support is another aspect you shouldn’t forget when signing a contract with a software provider. As part of the agreement, the software company should be ready to offer any technical support, especially in the case of game downtime.
Building a Library: Game Selection
Game content is the main selling point of your online casino business. You need to analyze your target market and get to know what players need in terms of game selection. If they are slot enthusiasts, you should provide a vast range of titles, including classic slots, video slots, megaways slots, 3D slots, and progressive jackpot slots. You can also narrow down to themes and provide exclusive titles with themes that revolve around their world.
The game selection goes beyond slot machines. There are other online casino games with a huge fanbase, so it is important you include them in your offering. Such games include online roulette, blackjack, baccarat, sic bo, video poker, bingo, and keno. Live dealer games also have a big fanbase and it is not hard to see why.
Collaborating with prominent software providers will also give your online casino business a competitive edge. It is important you partner with different software providers to satisfy the needs and preferences of different players. Furthermore, most players love trying something new, so you need to be on the lookout and add fresh games occasionally. New games will make your site remain evergreen.
Hire a Team
No matter how small your online casino business is, you will need the help of professionals to succeed. The first step to hiring a team is to determine how many departments you want. This, again, depends on the size of the business. For startups, you can start with key departments such as finance, customer service, fraud and security, marketing, and CRM.
The customer support department will be responsible for helping customers with any questions they may have. Professionals working in this department should be friendly, experienced, and conversant with both technical and non-technical queries. Moreover, they should be able to respond to queries via multiple support channels such as live chat, email, and phone. And if your customers are multilingual, support agents should also be able speak different languages.
The marketing department is also one of the business pillars that shouldn’t be overlooked. You need to hire professionals to convince potential players to sign up with your site and make deposits. They can achieve this by creating enticing bonus systems, marketing the casino through SEO content, and partnering with brand ambassadors.
Website Design
A user-friendly website plays a big role when it comes to attracting and retaining casino players. There are so many online casinos out there, and each of them wants a share of the market. This competition makes players choosy; all they want is something easy to navigate.
As you design your website, you need to make sure that all buttons, including registration, promotions, deposits, and withdrawals, are strategically located. The bottom of the page should have helpful links to site articles such as how to play online casino games and how to deposit and withdraw funds.
Payment Solutions
Reliable payment methods are a must-have ingredient when starting an internet online casino in the US. You need to make sure that your site is integrated with all popular payment systems for making deposits and withdrawals. For example, you can use fiat currencies such as PayPal, MuchBetter, Skrill, Neteller, Credit/Debit cards, and Bank Transfer. Crypto casinos are also becoming popular, so having Bitcoin and other cryptos on your site is important.
There are a few things you need to consider when choosing the best payment options to use on your site. The first thing you need to focus on is the safety and security of funds. To make sure you don’t lose money to fraudsters, you need to employ verified payment providers that use SSL technology. You also need to check the processing speed and deposit/withdrawal limits for various payment systems.
Site Security
This step on how to start an online casino business in the US is critical. As you probably know, online casinos are usually targeted by online hackers and fraudsters. To this end, you need to come up with various security measures that promote online gambling safety.
You can also introduce Know Your Customer (KYC) measures on your casino platform. This includes manual reviews of government-issued IDs, passports, and driver’s licenses. The KYC guidelines may also require players to submit proof of address documents, including utility bills and bank statements.
Licensing authorities may require you to comply with Anti Money Laundering (AML) policies. This includes developing robust security systems that detect suspicious financial transactions. Casino compliance may also include doing customer due diligence, maintaining records of transactions, and training the finance department on how to recognize suspicious transactions.
Marketing & Monitoring Results
Marketing is the final step in how to create your own online casino in the US. As an investor, you have two main goals – to attract new customers and retain them. To achieve these goals, you need to come up with an effective marketing strategy that will increase traffic to your site. Affiliate marketing is by far one of the most effective strategies you can apply. With this, you partner with bloggers or streamers who direct their audience to your online casino for a small commission.
A decent bonus system also plays a big role in player acquisition and retention. If your goal is to attract new players, you need to offer a better welcome bonus than competitors. Once you acquire new players, you need to retain them by offering regular promos like free spins, reload bonuses, and free bets. When coming up with a bonus system, you need to make sure that terms and conditions, such as wagering requirements, are fair.
Loyalty and VIP programs have also proven to be effective marketing strategies. Those players who make regular deposits, spend more time on the site and bet big deserve to be treated like VIPs. Therefore, it is important you come up with VIP/loyalty programs that offer exclusive benefits for the most loyal players. You can offer benefits such as VIP managers, instant withdrawals, VIP cashback bonuses, and birthday bonuses.
Once you have launched your casino site, it is now time to grow it and make it one of the best online gambling sites in the US. Growing your business is simple as you only need to pay close attention to every detail and optimize every process. You can also monitor results with the help of Customer Relationship Management (CRM) systems and Google Analytics.
Conclusion
Starting an online casino in the US can be difficult, especially for those doing it for the first time. However, the business can be successful when you acquire the right gambling license, choose the right casino software, hire the right people, and develop an effective marketing strategy.
In this guide on how to start an online casino, we have covered in details all the steps you need to follow. Pay close attention to every step, and your new casino will always stay ahead of the competition. And remember, there are many casino solutions, such as White Label, that help launch your casino within the shortest time possible.