Did you realize that online gambling business is one of many fastest growing business categories in the world? The popularity of online gaming is increasing rapidly and in 2010 has seen significant growth in Europe and Asia. In China and Malaysia, you can find doubly many online gamers as you can find 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’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 more than $150 billion in revenues by 2015.
Until recently small entrepreneurs had no potential for stepping into the gambling industry, due to huge capital investments, gaming license acquisitions gclub and legal red tape. The net eliminated all of the obstacles. You can now 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 the web gaming business:
1) Most Expensive – Design and implement all gambling software for an on the web casino, sportsbook and multiplayer poker room which may run you countless US Dollars. You may also need to obtain a gambling license to operate your online gaming business, which requires approval from most governments. However, you may have full control of one’s gambling site, and full knowledge of the source 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 can be a far less costly option to start an on the web gambling business and you will receive all of the gambling software and sometimes even the apparatus necessary. It is also typically the most popular selection for both licensed land-based establishments along with entrepreneurs. Costs vary from $30,000 to $350,000. The common licensing fees are about $150,000 (this usually includes marketing costs). Typically 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 put up for an entirely turnkey operation.
3) Most Affordable – Become a Sublicensee of a current Licensee. This is actually the most inexpensive option to start an on the web gambling business. Costs vary from $5,000 to $60,000. The sublicensee is responsible for all your marketing and receives a smaller percentage when compared to 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 world, online gambling business will remain one on most profitable online business opportunities of the 21st century.