Did you know that online gambling business happens to be among the fastest growing business categories in the world? The popularity of online gaming is increasing rapidly and this year has seen significant growth in Europe and Asia. In China and Malaysia, there are twice as many online gamers as there are Internet shoppers. Around 43% of Chinese Internet users play games online, while just 16% report which they shop online.
Revenues in online gaming business rose from only $800 million to over $2 billion in 1999! By year 2010, it’s estimated that online gambling industry will top over $16 billion in revenues! London-based Merrill Lynch analyst Andrew Burnett says online gambling could generate a lot more than $150 billion in revenues by 2015.
Until recently small entrepreneurs had no potential for engaging in the gambling industry, as a result of huge capital investments, gaming license acquisitions gclub and legal red tape. The net eliminated most of the obstacles. Now you can own and promote your own online casino, sportsbook and multiplayer poker room gaming business and generate revenues you’ve only dreamt about.
There are 3 ways to start an on line gaming business:
1) Most Expensive – Design and implement all gambling software for an on line casino, sportsbook and multiplayer poker room that could run you an incredible number of US Dollars. You will also need to obtain a gaming license to perform your online gaming business, which requires approval from most governments. However, you may have full control of your gambling site, and full familiarity with the foundation code of your gambling software. In addition, 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 less expensive option to start an on line gambling business and you will receive most of the gambling software and sometimes even the gear necessary. It can also be typically the most popular option for both licensed land-based establishments as well as entrepreneurs. Costs range from $30,000 to $350,000. The average licensing fees remain $150,000 (this usually includes marketing costs). Generally a royalty is paid to the gambling software provider as a percentage of the monthly “take” or “drop” (gross profit). Usually the gambling software provider has payment processing (merchant account providers) already setup for an entirely turnkey operation.
3) Most Affordable – Become a Sublicensee of an existing Licensee. Here is the least expensive option to start an on line gambling business. Costs range from $5,000 to $60,000. The sublicensee is responsible for all your marketing and receives a smaller percentage than a 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 consequently, the respective countries gain significant licensing fees and tax-generated revenues.
As Internet use spreads across the world, online gambling business will continue to be one of most profitable online business opportunities of the 21st century.