How Much Money Do You Need To Start An Online Casino Business In 2020?
Today it has already become a tendency to observe how online casino business are rolling into a scam (some of them do not pay winnings, block accounts, confiscate payments, etc.). In simple words, they turn into a trash heap. In this article, I will tell you why Operators behave in such a way, what is the reason for their deliberate or forced deception of players, and a few other interesting topics. Let’s talk about everything in order.
About the specifics of business and white label casinos
Companies such as Softgaming, Softswiss, Slotegrator, and others have spawned a huge number of non-professional online casino operators. They have no understanding of the gambling industry. Although at the first stages they are told about the mountains of gold and the easiest money that online casinos bring thanks to the white label. But nobody talks about the risks of this business.
The pitfalls of the gambling business
I want to stress and give you an overview of how much you have to spend when you open an online casino. The amounts of course are indicative.
Affiliate programs, or affiliates
This option is the safest as there is practically no risk of fraud. The main thing is to find affiliates who have work experience, as an example, you can take a look at this affiliate with a list of mobile casinos. However, this option is expensive. The essence of this method is simple. Affiliate site owners post links to your casino on their resource pages. These can be sites, forums, and other online resources with high traffic in your niche. The player follows the affiliate link to your casino and becomes a client. You pay your partner 50% of all the bets lost by the player in casino games and slots no download. It sounds tempting, but this is only at first glance.
The negative carryover model is used by most online casinos today. If the establishments refuse this scheme, the affiliate will remove all your links from their resource.
What negative carryover is?
Affiliate hours run on the first day of each month until the last day of the same month. After that, the profit received is calculated and paid to the partner. But what if one or more players hit the jackpot at the end of the month. Then the partner remains in the red. After all, the sum of the winnings of its players significantly exceeds the size of the loss. In this case, the operator makes payments to the players (the main thing is that operator has enough money to payout winnings) and cancels the affiliate’s share. The new month will start from scratch.
Flat fee, or payment for posting on the site
As you already understood, the number of online casinos is simply huge, but partner sites that can really bring good traffic to your casino are few. Each of the market participants understands the price of the competition. In simple words, if you want to occupy 1, 5, 8, and not the 25th position on the affiliate website, you will have to pay an additional 1 to 3 thousand dollars. But that is not all. A beginner will have to spend even more. For adding to the site, a newly opened online casino will pay up to 10,000 dollars to make a better position for ONE MONTH! Remember that the winnings situation does not disappear anywhere either.
Another way to attract players is CPA programs for PBNs (Private Blog Networks), traffic sellers, and traffic arbitrage. This method has greater risks than those previously presented. Since the casino is obliged to pay a flat rate for any deposit, even the minimum one. But the prices are very high. For example, for a player from the US, you will have to pay from 70 to 150 dollars, and Europe – about 80 dollars. For players from Scandinavian countries, you must pay up to $ 200. However, the average deposit of each player is only 10 dollars!
You will have to sweat a lot to achieve the result. And you will lose a lot of money. Don’t forget about unscrupulous online services and various scams.
The total sum for starting a white label casino can worth starting from 250k to 500k dollars! As you can see this is a pretty expensive business niche, which has a lot of risks. And most likely this won’t bring you any income in the end.
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