The online casino industry has taken off at an astronomical pace. The last two years have been a blessing for the industry, and new businesses have flourished. Amidst the neon websites and engaging titles, players have been flocking to online websites to play games for stress relief. Now it may give the impression that the casino industry is a lucrative and profitable market.
While we don’t deny that claim, we’re also taking a pinch of salt while believing it entirely. If you’re looking to start an indie casino, this article is for you. Today, we’re going to look at the myth – “casinos are always profitable and lucrative”. So, keep reading to find out what the risks associated are.
1. Barriers to Entry
Online casinos are cheaper to set up as opposed to real-life casinos. That doesn’t mean the barrier to entry is absent. To set up an online casino, you’d need to follow an elaborate process.
First and foremost, you’d require the cost of certification and registration with at least a couple of gambling commissions globally.
Next, you incur the cost of developing a website that functions on low network requirements but offers the highest experience. That’s because the industry is growing to become more competitive with each passing day.
Thirdly, you’ll incur the cost of hiring a customer service team. Remember that the customer service team cannot be small since millions of players flock to online casinos every day.
Fourthly, in several articles in which bonuses are revered because of the benefits they bring to a player. However, for a casino to grant bonuses is a risky affair. In the first years of your casino site, you won’t be able to dish out the best online casino bonus in Canada as given out by competitor sites.
Finally, hiring out games from existing software developers or developing your games will either cost a lot of time or money or both.
Failure to complete these steps can be catastrophic for your new casino. On the contrary, to break even with the cost you’ve incurred, it’ll take at least a couple of years or more. Hence, it’s not as rosy and easy as it seems. Let’s move on to the next step.
2. Establishing Credibility
The stigma surrounding online casinos is one of the most threatening factors regarding the business. Even though it is slowly disappearing, credibility remains a massive element. Establishing credibility for a casino requires at least a few years of good press. It’s simply because consumer trust regarding new sites is considerably low.
It’s also because new sites can never look as good as sites that have been around for ages. Hence, in the initial years, the customer base of a casino is also limited. If anything, this event will extend the period of breaking even in the business.
We live in a digital age. At the same time, the rate of cyber threats has increased by multiple folds. It brings about the requirement to set up adequate measures to protect consumer information and payment data.
For a new casino, this again is quite an extensive and costly affair. It requires you to employ professional cybersecurity experts to help your website be completely secure. Cutting costs in this element also looks like a red flag to consumers and may drive your customers away.
Is It a Hopeless Pursuit?
Well, we wouldn’t say it’s a hopeless pursuit. Casino businesses have emerged even after the existence of several top-notch players and are doing just fine. It’s wise to be aware of the risks and figure out ways to innovate the casino gaming industry.
Coming out with a disruptive idea is the best way to get to the top. We suggest you conduct thorough market research and create an ironclad business plan before putting money into it. Plan, disrupt, enjoy, and play on.