Realisticly, how much would you need to start/run an online casino

[Boris303]

Ok, as per the title of the post i am wondering how much it costs to start up an online casino, i think many of us assume that because a casinos online, has support staff, a flashy website perhaps that they must have a fair bit of money, i mean their a casino for christs sake so they must do right?

Well no, i don't believe they always do have a lot of money, and i think for my benefit and hopefully other members too i would be keen to know from others if they know what sort of money is required to start and run an online casino please?

My own thoughts are that, the casino software provider would probably set out some criteria that a prospective casino operator would have to have to be able to run a casino using that software providers software.
But other than that i don't really know, i know they would have to pay affiliates in one way or another, and of course certain staff that need to be paid, but how many staff and how much would they need in the bank to cover big winners etc?

Because i have a feeling you don't probably need as much money as most people think, but i really don't know so im all ears.

[zebedy]

I have often wondered the same thing, what sort of facilities they would need, how many staff, start up capital,
i think i read somewhere that at rival you only need a startup of around 40k, dont quote me on that ,
but to open a MG you need way more to meet the cryteria but how much ?? it would be interesting to know,

also at some of these online casino's i get the impression that some one like 32 red would have multiple offices all over, employing 100s of staff,
and someone like inetbet is run out of a spare room at home(sorry inet) great casino, and its just the impression i get due to the lack of phone and live help,

[Boris303]

I have often wondered the same thing, what sort of facilities they would need, how many staff, start up capital,
i think i read somewhere that at rival you only need a startup of around 40k, dont quote me on that ,
but to open a MG you need way more to meet the cryteria but how much ?? it would be interesting to know,

also at some of these online casino's i get the impression that some one like 32 red would have multiple offices all over, employing 100s of staff,
and someone like inetbet is run out of a spare room at home(sorry inet) great casino, and its just the impression i get due to the lack of phone and live help,

Exactly, i mean if we all knew how much an establishment needed in order to call itself an online casino and start up it could and should change the way we choose where to play.

Following on from what you say, i get the impression that the latest Top Game casinos probably don't even need 40K like you say Rival casinos may need.

[lots0]

The cost depends...

I could start a white label casino today... It would cost me nothing (actually less than $10. I would need a domain name).

If I wanted to start my own branded casino with an existing software provider (RTG, Rival, MG or any of the others) the cost would depend on the services provided by the software company.

The Software Company's provide customer service, payment processing, security, tech support, marketing, etc. all at different costs. Minimum start up costs would start around five figures and max would be well into the high six figures, low seven figures, depending on the services you wanted from the software provider.

And then of course you could always hire some programmers and create your own casino software platform. This is the most expensive option and it could set you back some where in the high seven figure range.

So you see there is not really just one cost but a cost range that goes from a few dollars to millions.

In addition to these costs you would also need a cash reserve to cover any large winners.

[spearmaster]

Anyone who wants to start up a casino with less than six figures, would you kindly PM me so I know which casinos to avoid?

Thanks in advance.

[Senfgnu]

True. I would start with at least 1,000,000 dollars.
You need a license, good software, player support and so on.
Then some good promotions to attract players and of course you should be able to pay your winners and affiliates.

If you want to start a casino with 40k - good luck, you'll need it. Or try to become part of the virtual casino group.

[me_and_ed]

I am pretty M/G requires a 300K trust account on top of all software and startup fees.

[AussieDave]

Hi all,

I'm pretty sure that MGS casinos for example require the operator to hold enough money to cover all bets placed at any given time.

Now here is a trip down memory lane (dig the web site):
http://web.archive.org/web/199704130....com/specs.htm

In 1999 Internet Casino System Version IV (MG top platform version) was $180,000US.

That didn't include the additional operational requirements.
Which one you needed at least a 9600kps leased line. That would have pricey back then.

Based on the 1999 figures I'd guess a MGS casino (just the software) would set you back at least $1Mil these days.


Cheers
T

[coxwel]

great post! i always asked myself this question and think its a very interesting subject. hopefully some of the igaming reps will post here.

i really can only guess on this but for a playtech or mg casino you need good credit.

and i also think to know that if you want for example offer moneybookers for financial transactions you have to! be licensed and they also check your financial backround etc.. so if a casino offers mb its kind of a good sign..

this also applies for neteller i think, it costs 1000$ to put up a merchants account and they check the manager etc.


and another question would be the country you choose for your license, there are also hih variances in startup fees etc.


i have also read in te past that major casinos all are under insurance, so they cant bust out or leave people unpayed. this insurance is kind of expensive i guess


there are quite few crap companies on the net offering you complete casino packages for about 20-50k... but i see no casinos running this software, the closest to this style is topgame imho.. poor designed and the weirdest slots i experienced at all...

would e interesting what rtg sets for standards? as there are so many crooked rtgs around..



cheers

coxwel

[pevangel]

That is an interesting question Boris.


pevangel