Did you realize that online gambling business is currently one of the fastest growing business categories in the world? The popularity of online gaming is increasing rapidly and this season has seen significant growth in Europe and Asia. In China and Malaysia, you will find doubly many online gamers as you will find Internet shoppers. Around 43% of Chinese Internet users play games online, while just 16% report that they shop online.
Revenues in online gaming business rose from only $800 million to over $2 billion in 1999! By year 2010, it is estimated that online gambling industry will top over $16 billion in revenues! London-based Merrill Lynch analyst Andrew Burnett says online gambling could generate significantly more than $150 billion in revenues by 2015.
Until recently small entrepreneurs had no chance of stepping into the gambling industry, as a result of huge capital investments, gaming license acquisitions gclub and legal red tape. The web eliminated all of the obstacles. Now you can own and promote your own personal online casino, sportsbook and multiplayer poker room gaming business and generate revenues you’ve only dreamt about.
There are 3 ways to begin an online gaming business:
1) Most Expensive – Design and implement all gambling software for an online casino, sportsbook and multiplayer poker room which could set you back countless US Dollars. You will even need to obtain a gaming license to perform your online gaming business, which requires approval from most governments. However, you could have full control of one’s gambling site, and full understanding of the foundation code of one’s gambling software. Additionally, no royalties are paid out to a gambling software development company.
2) Average – Become a Licensee of an Online Gambling Software Provider. This can be a far more affordable option to begin an online gambling business and you will receive all of the gambling software and sometimes even the equipment necessary. It is also the most popular selection for both licensed land-based establishments along with entrepreneurs. Costs range between $30,000 to $350,000. The average licensing fees are around $150,000 (this usually includes marketing costs). Generally a royalty is paid to the gambling software provider as a portion of the monthly “take” or “drop” (gross profit). Usually the gambling software provider has payment processing (merchant account providers) already set up for a totally turnkey operation.
3) Most Affordable – Become a Sublicensee of a preexisting Licensee. This is the least expensive option to begin an online gambling business. Costs range between $5,000 to $60,000. The sublicensee is responsible for all your marketing and receives a smaller percentage than the usual full licensee (2), because royalties paid to the licensee are much higher.
To legally operate online gambling businesses, online casino and poker room owners turn to sovereign governments in countries that permit online gambling and duly issue licenses for gambling operations. The casinos and poker rooms are registered as offshore gambling operations and subsequently, the respective countries gain significant licensing fees and tax-generated revenues.
As Internet use spreads across the globe, online gambling business will remain one of all profitable online business opportunities of the 21st century.