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START CASINO . COM
Independent Information Site on Starting an Internet Casino Business
BUSINESS ARTICLES
January 1, 2001STARTING A CASINO BUSINESS: WHERE TO BEGIN
By Marc Lesnick
For those with the entrepreneurial spirit, owning an internet casino seems to appear as the closest one can come to a "sure thing." Its popular, its lucrative and almost anyone can start one.
Most of the companies with online casino operations have licensed the software from a gambling software provider (GSP). StartCasino.com lists over 90 GSPs and provides more information on how to start an online casino business. Most entrepreneurs choose licensing software from a GSP because its less expensive than the development of gaming software. Its also a faster way to start an online casino business.
StartCasino.com interviewed the GSPs. We asked what they saw as the most important factors an entrepreneur should consider when starting an online casino business. Here's what some of them had to say:
MARKETING
Aggressive marketing and initial cash on hand are two of the most important factors, according to Richard Brightling, VP of International Marketing and Sales at IQ-Ludorum. "Newcomers to this highly competitive marketplace must commit to a marketing driven approach, backed up by an equally strong focus on execution. Your new internet casino must be well capitalized for essential monthly marketing programs."
As for selecting whom to work with, Go Call president James Palmer believes that finding an honest partner, planning, smart advertising, and expecting a higher budget than anticipated is the key to success. "Don't try to use all your prior business experiences to change the way this business should be done... it is unique."
SOFTWARE SELECTION
There are plenty of choices of software, according to Patrick Smyth, President of Wiremix Media. "It is important to use a turnkey solution that offers the essential elements of a successful online casino: casino games, sports betting, bingo, lotteries, pari-mutuel racing, java games, downloadable games, affiliate programs and back end financial and security systems."
In selecting downloadable versus instant-play casino software, there are advantages and disadvantages of both. "Whatever your choice, the software technology you choose should be both stable and cutting-edge, and developed by a company that has been proven in the marketplace," says Mark Waters, Director of Business Development at GamblingSoftware.com.
Evergreen New Media's president Steve Tautz believes that a new casino operator should create something "ten times" better than existing operations. "Creating a successful online casino demands more of its investors than many anticipate. It's expensive to be ten times better than your competition."
"The software must be a stable, evolved product. Otherwise you will be wasting precious energy in the wrong places," advises Bryan Abboud, Managing Director at Interactive Gaming and Wagering. "Choose a software vendor that has been in business for at least 2 years and has more than 10 websites that are running the platform."
Martin Moroian, President of First Multimedia Group also believes in checking who you're dealing with. "The software company should have a physical address where it can be located, and its own team of developers. It doesn't matter the amount of developers that the firm has. What is important is the quality of the work. It should be a dynamic and flexible firm, and it should be able to adapt itself to the market's needs. "
Interactive Solutions Corporation President David Bailey told StartCasino.com, "if one doesn't have a superb software manufacturer who has software with great quality graphics, reachable customer service, reliable hardware, and strong bandwidth from a solid company, than the internet casino will be like a fish without water."
"While rich graphics and a player-friendly front end are important, the back-end system lets the entrepreneur configure their games, track play & bonuses, and generate key reports," agrees Andrew Branscombe, Director of Sales at dot com Entertainment Group Inc. "It is the engine of their business and a very key factor to look at before getting started."
LOCATION, LOCATION, LOCATION
This was continually repeated to StartCasino.com during these interviews by most of the companies in this business. The issue of where to place your casino operation is a very important factor. Sherri Paisley, Director of Marketing for SoftNetGaming, advises that the business operation be in a legal, licensed, regulated jurisdiction. "Operating in the absence of such licensing is risky and completely unnecessary as there are now many recognized jurisdictions with the proper infrastructure in place."
Tim Conroy, President of I-Net Software told us the following factors to consider in selecting an internet casino business location: "cost of licensing, national workforce wages, employment rates, cost-of-living, and, most importantly, the expense and availability of quality telecommunications."
CUSTOMER SUPPORT
Customer support was also repeated again and again to StartCasino.com by the companies in this business. Daniel Shultz, Chief Marketing Officer at RealTimeGaming said "Many entrepreneurs make the mistake of believing that once they 'flip the switch' the software will 'obtain' the customers; 'retain' the customers and make them lots of money. An online casino operation is just like any other business. Proper management must be in place to oversee the daily operations of running a casino. Strong customer support is also a key to retaining your players."
PUTTING IT ALL TOGETHER
Incorporating the gaming software, marketing and player support into one solid entity is "the trick" according to Sam Riedel at CasinoAge.com. "A software company should have an experienced management team, be constantly upgrading the gaming software, and offer player and software support that is second to none. A large marketing budget doesn't necessarily translate into a successful marketing campaign. The key is efficient marketing strategies."
Poker.com offers a unique philosophy for starting a casino business. "You've heard of the three 'R's. Now there's the three 'D's. Drive...Download...Deposit," says James Duchscherer, VP of Marketing. "Drive traffic to your site. Download your casino software. Deposit for real money play. Streamline the processes surrounding the three 'D's and your casino will hit the jackpot."
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