Did you know that online gambling business is 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, there are two times as many online gamers as there are 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 a lot more than $150 billion in revenues by 2015.
Until recently small entrepreneurs had no potential for stepping into 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. It’s simple to own and promote your own online casino, sportsbook and multiplayer poker room gaming business and generate revenues you’ve only dreamt about.
You can find 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 which could cost you an incredible number of US Dollars. You may also need to obtain a gambling license to perform your online gaming business, which requires approval from most governments. However, you can have full control of one’s gambling site, and full familiarity with the foundation code of one’s 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 is a far less costly option to start an on line gambling business and you will receive most of the gambling software and sometimes even the equipment necessary. It can be typically the most popular option for both licensed land-based establishments in addition to 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 set up for an entirely turnkey operation.
3) Most Affordable – Become a Sublicensee of a preexisting Licensee. This is actually the most affordable option to start an on line gambling business. Costs range from $5,000 to $60,000. The sublicensee is responsible for the marketing and receives an inferior 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 subsequently, the respective countries gain significant licensing fees and tax-generated revenues.
As Internet use spreads across the planet, online gambling business will continue being one of most profitable online business opportunities of the 21st century.