Everyone seems to be investing in the booming online video game industry. But around the world, there’s another gaming related sector showing tremendous promise to investors: iGaming.
Already a multi-billion industry, iGaming isn’t exactly new. Developer Microgaming created the world’s first online casino in 1994. Within six years, the online poker boom was born.
The golden age of poker is gone. However, the online casino sector as a whole is still thriving. Should you invest in the sector?
Demand is At an All-Time High
There has never been a better time to invest in iGaming than now. With the US and Canada fast licensing iGaming, the sector is projected to hit $150 in revenues by 2025.
Online gambling is an expansive industry that includes poker, slots, sports betting, bingo and lotto games. But you don’t have to offer all these products. You can niche out to specialize in poker or bingo.
That being said, iGaming is extremely competitive. The average online casino goes out of business after just one year. If you want to succeed, you must learn how to thrive in a competitive business environment.
New Games Like Bingo Slots
New casino games keep cropping up. Bingo slots are a good example. The slots combine elements of slots and bingo to create a unique albeit exciting experience. The first bingo slot came out in 1994.
But the games have always been a small niche until iGaming exploded. Now, everyone wants to try out Slingo games. If you would love to learn more about bingo slots, find out more information at Bingoslot.com.
At the best Slingo casino sites, you get welcomed with a sweet 100% match on your first deposit. You can use the money to play regular casino games or Slingo. The choice is up to you.
That being said, investors who want to venture into iGaming need to understand one thing. Most casinos offer a variety of games. Although you can specialize in Slingo games, the market might be too small. As such, it makes more sense to partner with software providers who offer multiple casino games.
Flexible Licensing Options
In the early days of online gambling, you had to visit Curacao, Panama or Costa Rica to acquire a casino license. Most countries either prohibited or had no regulation laws for the industry.
In 2023, you will be spoilt of choice if you want to setup a mobile sportsbook or casino. In the US, more than 25 states permit sports betting since it became legal in 2021.
Speaking of which, legal sports betting is now worth more than $20 billion in the US. And more states are expected to license the industry. Around the world, you can acquire licenses in Malta, the UK and Canada.
The cost of buying an iGaming license depends on where you want to setup your business. In the UK and Malta, you can get an iGaming license for as little as $5000. In the US, a similar license can cost as high as $1M.
Affiliate Marketers Can Get You Customers
Although you can’t escape paid advertising as a casino owner, you can lower your expenses by embracing affiliate marketing. Nearly every iGaming business has an affiliate program.
The main reason: it works. Affiliate marketers make money through commissions. You can decide to pay a flat amount for every new customer who makes a deposit. Or, you can payout commissions based on the profits you make from every customer.
To become an affiliates’ darling, learn what casino players love. Spoiler alert: they want outstanding services. Create a neat, mobile-optimized website. Offer high-quality slots and live games.
Importantly, welcome new customers with bonuses. If you have zero bonuses on your site, affiliate marketers will find it difficult to market your casino. Additionally, be ready to handle the onslaught of questions new casinos get by employing a customer service team.
Globally Accepted Payment Options
One of the reasons nearly every iGaming provider has an international reach is because of global mobile banking. In the past, foreign gamblers had few options when it came to paying for casino gaming.
These days, companies like PayPal operate all over the world. And PayPal is not alone in facilitating deposits to casinos and sportsbooks. More than a dozen well-known brands work with iGaming businesses.
Where customers can’t use PayPal, Skrill or Google Pay, they can use Visa or MasterCard. And if they can’t access credit card banking, there’s always the option to use crypto.
Crypto casinos and sports are on the rise. And the main reason is because they break financial barriers to people who can’t access conventional banking options. Crypto casinos also don’t have to acquire licenses, although most of them do.
Low Overhead Costs
Online casinos are cheaper to run than their land-based counterparts. You may require a physical office. But you don’t need vast amounts of land for your casino. That means fewer employees and less money required to pay staff.
To run an iGaming business, you require website programmers, designers, marketers, accountants and customer service reps the most. You need people to look after your website so that it runs smoothly 24/7.
More importantly, you need a team to help you market your brand. You can outsource certain aspects like content creation. But you need someone to ensure everything runs smoothly.
A bricks and mortar casino has a limit on the number of customers it can accommodate. And it starts facing competition from a nearby casino, its fanbase could reduce.
With iGaming, you can start a business that will grow for years to come. Sure, competition is stiff. But the market keeps expanding. More and more countries are legalizing online gambling.
This means iGaming businesses are not limited to any geographical location. If the UK market gets saturated, a business can target Europe, Asia, Africa or South America.
Now, success in any online business is easier said than done. As we mentioned earlier, plenty of new iGaming businesses shut down after a year. But if managed properly, a casino or sportsbook startup can be a great business idea.