Operating an online casino has the potential to bring in big bucks but also has some steep start-up expenses. Starting an online casino in Canada is not much different than starting an online casino anywhere else in the world, depending on the jurisdiction in which you choose to license your new casino.
The growing popularity of online gambling makes starting an online casino a very tempting endeavour to pursue. If you look around, you’ll see new online operators are popping up every other day in Canada, but starting one is not cheap at all and the competition can be fierce. So what does it take to get started?
What it Takes to Start an Online Casino in Canada
Starting an online gambling business is an alluring enterprise in today’s market. With a global pandemic keeping millions of people at home, online gambling has increased significantly. The profit margins in this business are staggering, provided you have a smart business plan and a generous budget to get started.
Obtain a Gaming License
When starting an online casino, one of the biggest expenses you’ll face is getting a license. This is the most important part of the process and gives you the legal right to conduct online business in one (or more countries). You need one of these for two important reasons (both of which will affect your bottom line).
- Access to high-quality software suppliers (casino platforms) that will not do business with quasi-legal or illegal entities. And without their intellectual property, you won’t be able to use their products.
- Players are getting savvy to scammy sites and will steer clear of unregistered online casinos. Proper licensing guarantees that the owner is upfront, pays taxes and is a site that players can trust.
Canada tends to have more stringent gambling laws, therefore, it’s possible to save some hassle by incorporating elsewhere. Offshore countries like Curacao, Costa Rica, and Gibraltar typically charge between $15,000 to $20,000 per year for a license and are some of the most popular areas to register.
An authoritative license will cost at least $ 35,000 per year. It will also be necessary to pay a number of fees and charges, provide financial reporting, and pay taxes.
Hook Up with Reliable Software Providers
The gaming software itself is the key to your new business. Therefore, securing a deal with a trusted software provider is an absolute must. High-quality software will enable your new casino to be competitive in a fairly saturated market.
When evaluating software providers, pay close attention to gaming content, cooperation conditions, certifications, and technical support, which should come as a part of the whole package.
- Platform: system to manage and administer player accounts
- Casino solution: Gaming content included
- Extras: Tech support, security features, and certifications
The cost of a software package can vary considerably, depending on the platform itself and conditions of the agreement, but can run anywhere from $10,000 to over a million dollars, depending on the vendor and functionality you choose.
Choose the Games You Want to Offer
Choosing a variety of games may be quite a costly proposition if you want to offer the best selection to your players. Having the most entertainment options will help to build your reputation and clientele but it will also cost you more for a bigger selection.
Choose from thousands of slot machine games, poker, roulette, blackjack, and others. The games will be scripts of code that integrate into the platform you’ve chosen. If you decide to niche down, you can save some money by offering a smaller selection in a boutique-style casino.
Acquire Verified Methods of Payment
The most important part? Getting paid! Nowadays, online gamblers expect a wide variety of payment options (like credit cards, e-wallets, Paypal, and cryptocurrencies) on their favorite sites. Make sure your site includes multiple payment methods, quick transactions, and a wide selection when it comes to accepting deposits.
Build the Website (and Related Mobile Apps)
Next, is your storefront itself. The website you build is going to be the first thing your customers see and will be your primary gaming business tool.
You may think you can save some money by building the website yourself, but DIY can really become challenging when it comes to integrating payment software and financial tools. Despite the expense, getting the job done right by a contractor will give you peace of mind and will only cost between $1,000 and $5,000 (or more).
Get in the Game
Like any other business, you’ll need to factor in the costs associated with marketing, staff, salaries, taxes, and contingency funds that will really start to add up. As you can see, it is not an inexpensive venture. And, as always, the more money you invest in your gambling business, the more you stand to gain.
Canadians have a lot of options when it comes to online casinos but there are also a ton of players out there looking for fun, variety, and unique options to satisfy their pursuit of fun, thrills, and big wins.