Ambitious, business-minded individuals are always looking for the next opportunity for success. To succeed in today’s world, you don’t just need a good idea; you need to know how to execute and maximize it. The online gambling industry is partway through its third decade, and it’s showing no sign of slowing down. Growing exponentially and embracing every new technology that comes it’s way, it provides endless options for savvy business persons looking for opportunities.
There are over 1.6 billion gamblers in the world and an increasing number of these are turning to the online world to enjoy sports, cards, table games, eSports, fantasy sports, and slot games. If you are considering setting up an online casino or gambling site, you might be wondering where to start.
The current state of play
The current state of playThe online gambling sector has been on an upwards trajectory for some time now. Recent figures have estimated that the market will continue growing at a CAGR of 11.5% over the next six years, surpassing $126 billion by the end of 2027. This is fueled by increased smartphone usage combined with cheap access to high-speed internet. It’s also supported by the popularity of new online gambling sectors and the integration of new technologies.
The eSports sector
The eSports sector
eSports is a particularly interesting and important sector that has witnessed a significant shift from the underground to the mainstream in the last couple of years. It’s now considered a form of sports betting in its own right and has garnered fans that once preferred football, horses, and dogs, not just video game fans.
A good example of this growth is Esports Entertainment Group who reported $18 million in profits in 2020, which they expect will increase to $70 million in 2022. They signed a deal recently to acquire Helix eSports and ggCircuit in a deal worth some $43 million and established Malta-based casino Lucky Dino. Through their Malta gambling license, they launched new brands and now operate in some 150 countries globally.
Furthermore, according to Esports Insider, at least $28.8 million worth of investments was plunged into the eSports market in February of this year alone.
Other sectors within iGaming that are enjoying significant interest include cryptocurrency gambling, fantasy sports, live table games, and as always, slots. In short, you can see from the figures that online gambling is, and will continue to be a sector with significant potential. A new generation of gamblers is emerging with unique demands which are resulting in a need for dynamic operators to meet their needs.
Find your niche in the online gambling industry
The online gambling sector is incredibly competitive and there are many companies out there offering similar services. When you are opening your online gambling business, you need to consider what your strengths are and what can set you apart from the others. For example, it could be your experience that allows you to tailor a product specifically to a certain demographic. Alternatively, you may have ideas to incorporate certain technologies like blockchain, AI, VR, and cryptocurrency into your platform.
Other potential competitive edges include using unique software and games that are different from those provided in the mainstream options. You can also decide to provide your offerings in multiple languages or target a certain country or region.
Before you start the process of setting up your online gambling platform, you do need to have some clarity on what your niche will be. If in doubt, ask yourself “what sets me apart from the competition?” If you are not sure of the answer, it’s time to go back to the drawing board until you can find at least one thing that sets you apart.
Who is your target audience and what do they want?
Comprehensive market research is incredibly important before you start setting up your company. You must have a solid idea of who your target audience is, where they are, and what they want.
If you aim too big and try to target the whole world, you will likely fail as you will be drowned out in a sea of competitors. As a startup, typically you won’t be competing with multinational and well-established brands, rather you will want to start small and work your way up.
The success of your venture will depend largely on whom you are targeting, whether you can meet their needs, and how well you satisfy their demands. To be accurate with this, you have to conduct market research.
Pick a geographic location
You need to pick the countries where your services will be offered. This could be a handful of countries or a larger geographic region. You should first ensure that online gambling is legal in those countries and take note of any age restrictions. The geographic location you pick will also influence other areas of your strategy including what languages you will offer services in, certain cultural considerations, and preferences.
Pick an age group
Once you know where you will be offering your services, it’s time to consider what age group you will focus on. Of course, you must consider the law, but you can drill down into other age groups such as 21-34, 35-50, or 50+. Each of these has very different skills, preferences, and needs when it comes to gambling and as an operator, you need to be aware of this.
Pick your games
Different types of games are popular in different regions and therefore you should know what the preferences will be for your target audience. It’s no good offering eSports to a country that has no interest in it, or slots to an age group that think they are boring. It’s always good to offer a selection of games on your site, but make sure they are the kinds of games that your target demographic wants to play.
Consider technology
If you are targeting 21-34-year-olds in Europe, they will likely have an increased demand for innovative technology to be incorporated into the site. Those that are 50+ however, may prefer something easy and simple to use. For the tech-savvy audience, integration of VR, AR, and crypto is worth considering, as well as mobile-friendly gaming.
Consider the type of gaming
Different demographics of users will have different preferences concerning social vs individual gaming. Age, gender, and even location can impact which your audience will prefer.
Look at your competitors
An important part of your research is to see what your competitors are, or are not doing. See what they are doing well and not so well, and figure out how you can fill in the gaps.
As an online gambling entrepreneur, you should also be taking into account projections for the region that includes your target audience. Growth forecasts may vary between jurisdictions and you need to understand realistically what your company can achieve in the short, mid, and long term.
Pick the perfect jurisdiction for your online gambling business
Once you have conducted your market research, it’s time to pick a jurisdiction to be based in. Over recent years, the offshore gambling industry has become more popular as operators look to set up their company in a jurisdiction other than the one they are from or live in. This offers greater levels of flexibility, privacy, tax efficiency, as well as making it easier to explore different licensing options.
When picking a jurisdiction to base your online gambling company, you should always consult with a professional. They will be able to guide you through the pros and cons of each jurisdiction and help you pick the one that suits your business needs. Most of our clients start with a Curacao license and then progress to other options after some years of success.
The Curacao license is cost-efficient and quick, and company incorporation there brings tax optimization benefits and minimal maintenance requirements. Once their concept has been proven and they are profitable, other options such as Kahnawake, Malta, or the Isle of Man can be considered alongside, or instead of the Curacao license. These other licenses also bring with them the possibility of access to new payment providers and markets.
Contact Fast Offshore
As a startup or entrepreneur, starting a business during these complex times can be daunting. But with online gambling, the demand is there and it’s continuing to grow. With careful research, innovative ideas, and a good, professional partner, launching a successful online gambling site doesn’t have to be a gamble. Schedule a free 30-minute conference call by visiting our contact section and get the ball rolling.
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