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

Boris303

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

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:p


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?:p as there are so many crooked rtgs around..



cheers

coxwel
 
Total ESoft just offered me their premium package for 4800 pounds (spam), you can start your very own clip joint for under 5k. :D
 
Hah I like this question.

Let me give you some of the basic costs which have no reflection on Jet...

License - 60,000 per annum + 10,000 investigation & ICS Approval
Key Individual Certificates per director & senior manager - 5,000 each
Servers & Hosting will cost a minimum of 6 figures per annum
Staff costs, Marketing, Payment Processing, Six Figure Capital...

All in all you should expect costs of well over 500,000 in the first year of operating if you really want to drive your business and make it succeed. This cost will only grow as you employ more people and increase your player base.

It's not a cheap business to run so always be sure to stick with credible companies with good backing and a good management team.
 
It would probably be sensible to buy insurance to cover the cost of any very big winners when you first start out.
 
It would probably be sensible to buy insurance to cover the cost of any very big winners when you first start out.
... or just open another RTG clip-joint - then you'd never have to pay any winners at all! :thumbsup:

:p
 
Looked into it somewhere around 2002. To fire it up the right way was somewhere around 1.3 million back then. Plus me and my partner would of had to share time off shore to over see operation. Plus costs of setting up both paperwork and residence in a foreign country. We both had family and local business interests, didn't make much sense risking our balls with an uncertain future. Besides not having any connections what so ever, we certainly weren't no computer whiz's either. Would of been at the mercy of what we were being told, and on the job training.
 
This is kinda funny, since I accually was into the belief that my losses could atleast keep a casino going... I tried (email, so I didnt) to get in touch with Microgaming, however that didn't work.

Im a guy from Nowray, and I do know some people in the industry. Working with software myself, it's easy to get the belief that (just like Adobe software) you might just download with bittorrent and start your own casino. However, the truth is that, like a few people already added, you need staff. Think what you yourself would want as a salary, and think of how many staff members you want.

Also, consider that Microgaming, after all - has to be the best software ever. This has to cost, Microgaming are not rookies, they know the game! This is a marketplace that brings alot of money, also it brings alot of "newbies", which in turn makes Microgaming a service provider that has to pick their customers. This makes the price go up, on the other hand, this is good for the customers.

It is easy (?) to calculate the cost of running a casino, you need to add you employees and license fees (software and casino papers). I believe the biggest cost is having insurance of a possible win, since no serious casino can afford NOT to pay the win. If you look at investors, I would think that any figure below ten million dollars is wishful thinking!

Remember, there is alot of people involved, and this is a money business! Maby there are software brands that make you the king for 1K, however this is no way to run a business!

I belive, as what I thought some years ago, that a few hundred thousand dollars... No way, that doesnt work!
 
OK - so --- realistically - if I had 4 million AND I wanted to move overseas (where to?)

This could be a possibility?

And what are the percentages on returns?

I mean realistically WHAT do casinos ON AVERAGE make?

Is it worth investing 4 million?

Seriously guys - anyone know?

I may be in a position to do this type of thing in the not too far off future and it IS a thought that has crossed my mind.
 
since the new fashion is NetEnt and multi-platform casinos, is good to know early what to do after i win the mega $1m off Dark Knight. :drink:
so how much cost to build a top multi-platform casino on nowadays standards?
this is what i found on google at first occurred link

Playtech.com, Rival Gaming and Viaden.com offer quality casino products, being considered some of the top online casino providers but they charge a minimum of 10000 EUR per month while also demanding a minimum of 15% cut of the royalties from the casino. If you choose to buy a complete solution from these guys you will end paying them a minimum of 120 000 EUR in just one year.

if true, how some of the less known Playtech Casinos survive?!
 
Did you HAVE to dig up a 5-year-old thread to ask this question? :(

since the new fashion is NetEnt and multi-platform casinos, is good to know early what to do after i win the mega $1m off Dark Knight. :drink:
so how much cost to build a top multi-platform casino on nowadays standards?
this is what i found on google at first occurred link

Playtech.com, Rival Gaming and Viaden.com offer quality casino products, being considered some of the top online casino providers but they charge a minimum of 10000 EUR per month while also demanding a minimum of 15% cut of the royalties from the casino. If you choose to buy a complete solution from these guys you will end paying them a minimum of 120 000 EUR in just one year.
Errr... I don't think so! If those 3 are "some of the top" then just about ALL other softwares must be "some of the top" too!

if true, how some of the less known Playtech Casinos survive?!
Possibly by ripping off their players and earning interest on Progressive Winnings kept in their banks for years...?

KK
 
Appreciate this is an old thread but it seems to have been revisited recently. The set up costs with a white label provider these days are not prohibitive it is really about how much you are willing/have to spend on marketing.

If you are an existing affiliate, with strong traffic and a good knowledge of the market you could begin making money from your own brand of casino relatively quickly. If you are starting from absolute scratch then it would likely take longer and cost more but that is fairly self evident.

I work for a company who provide a white label platform that incorporates MG games as well as a host of others and would be happy to answer any questions about the costs, the process and the likely returns from launching your own brand.
 
Estimate to start you own online gambling business

Hi forum. I’m a Marketing Director for an online gambling software provider and I can share some knowledge regarding the costs to operate an online gambling website. And for those who don’t want to read the whole explanation, I can say the lowest investment would be around at least 150.000 EUR for a legitimate business with license and everything. I will explain below the process.

First you need to decide what form of online gambling you want to provide as an operator: sports betting, casino games, live dealer games, lottery, bingo, financial betting etc. No matter what type of gambling product you want to provide on your website you will need a license to operate. This license must be issued by a gambling licensing organization. The price for the license varies depending on the country that issues the license. Your “business office” must be located in that particular country. Last time I’ve checked Costa Rica provided a license for $15.000 with a quarterly fee of $1.500 but there are more such organizations: Isle of Man’s Gambling Supervision Commission, Gibraltar Regulatory Authority, Alderney Control Commission, Malta Lotteries and Gaming Authority, licenses issued by the Governor of Curacao and several others. Just google “online gambling license” and you’ll find plenty.

The second thing you need to consider is the software or the platform you are going to use for your website. The software must be reliable, fast and secure. Reliable how? Let’s presume you operate an online sportsbook and you have a section for live betting. Now if just one bug screws something you will lose a lot of money. If one bet line doesn’t update the odds fast enough, users will start placing bets like crazy and you will lose money. Of course you could cancel all bets but then you will have negative comments and the fastest way to kill your online gambling business is by getting bad reputation. So the software needs to be tested and needs to be of high quality. Now about the price you will pay for the software. Big companies ask for a lot of money and I can understand why. If they work with 100 - 200 online gambling websites they can choose their clients. Their products are good but there are a lot of software providers offering the same quality for a lot less (around 85.000 – 100.000 EUR).

Some software providers offer with their platform additional services for free including trained staff to handle all daily operations like: settlements, customer support even affiliate managers if you’re running an affiliate program as well (which I consider a good idea).

Once your gambling website is operational and running, you will need marketing. Initially, you could market your website with: a rich bonus offer, referral programs and affiliate programs. Again, some software providers include in their package marketing services to a certain point, but it’s a start.

You will also need to make payouts in the initial phase until you business starts to make some profits so you might take this aspect into consideration as well. Have realistic expectations. Don’t think you will compete against the big brands overnight but I have seen operators recover their initial investment in less than 1 year. If you have any questions I will be happy to answer. Good luck!
 
Yeah . . . I'm thinking a $100 US Savings Bond

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.

Top Game is truly a joke. It's ashamed they have licensed their software to the rogues of the rouges. There may be one exception out there but I'll never deposit at Top Game again--unless it associated with one of the accredited groups here on this site then I just might.
 
Well that is comforting . . .

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

NOT!!!!!!!! Even on top of licensing fees and everything else I personally do not think it's sufficient.

Of course there are so may things they can place in their terms regarding maximum weekly withdrawal amounts. Additionally they can stall endlessly with that withdrawal in pending status which always has been and always will be their most effective and primary weapon to thwart off a winner.
 

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