7 Things Every Casino Startup Needs To Know

Starting a casino, whether brick-and-mortar or online, can be highly profitable; however, there are some obstacles that need to be overcome or addressed before launching your new business. 

Competition in the sector is increasing as hundreds of online and retail casinos launch each year, meaning you have to have a strong brand identity, capital investment, and casino setup to attract players to your offerings.

1. Be Clear About The Type Of Casino You’re Starting

There are six main casino types, and it is good to have a solid idea of your business type. Some of these types can be combined into a single brand, like a retail casino with a website offering games. 

• Brick-and-mortar: These physical casinos are stand-alone establishments that can be visited in person.
• Casino resorts: These casinos are linked to hotels or resorts, and include other facilities like entertainment venues, restaurants, and shops.
• Online: iGaming platforms are casinos that are completely online. They can be local and registered in the country of residence, or offshore sites like those reviewed by PokerStrategy.com that offer casino games beyond country boundaries. Online casinos accept various payment methods and currencies, and tend to offer more game options than physical establishments. 
• Sportsbooks: These are online sports betting platforms that allow users to bet on sports events.
• Mobile: Smartphones have made it possible to play casino games on our devices. Mobile casinos are apps that can be downloaded and played from phones or tablets. They’re highly convenient and accessible, and ideal for shorter gaming stints. 
• Riverboat: These unique casinos are hosted on riverboats or paddleboats, and are often major tourist attractions due to their blend of modern and historic entertainment.

2. Choose The Company’s Legal Structure

Once you know what kind of casino you want to launch, you also need to decide on your business’s legal structure. It’s best to discuss with experts to see what would work best for your startup. Any of the five structures below are commonly used by casinos (both online and physical):

1. Sole proprietor: The business and owner are the same legal entity. The casino owner is responsible for all finances, debts, and business requirements. It has an easy structure to set up, and is also affordable, making it a good option for startups. The biggest downside is that the owner will be accountable if the casino has any debts.
2. Limited Liability Company (LLC): Owners of LLCs are not held liable for casino debts or business obligations. There is no personal liability for the owner, and it also allows flexible management. One of the big downsides is that owners are self-employed and will be taxed accordingly.
3. Partnership: This is a good option for a small business if there are two or more people wanting to launch the casino startup. All casinos are responsible for debts, but also equally share the profits.
4. C Corporation: The business is viewed as a separate entity from the owners. The casino can have shareholders and is also considered its own tax identity. Owners are not liable for any debts accrued. However, there is double taxation as the business and shareholders must pay tax on profits and dividends, respectively.
5. S Corporation: S Corps enable owners to funnel business income through personal tax returns, eliminating double taxation. There’s a limit to the number of stakeholders.

3. Get All Required Licenses And Permits

To operate legally in almost any jurisdiction, you will have to obtain the correct license or permit. 

In general, casinos require a gambling license from a local or international gaming commission. These licenses ensure that casinos are regulated and not involved in any fraud.  

It is also possible that the startup will require a business license from the local city council, as well as a tax permit, so that any revenue generated can be taxed.  

For physical casinos, there’s also the need for zoning approval and compliance with OSHA standards, including fire safety and hazard communication.

4. Create A Business Plan Before Launch

Any startup will need a robust business plan to get investment, assign responsibilities, and determine how the casino will be managed in the future. 

A business plan should include the following:

• The company overview, including the type of casino, the mission, and the vision.
• An in-depth market analysis of the current gambling market, potential customers, and the biggest competitors.
• Marketing strategy to get the casino seen by the right audience.
• Operational processes, including day-to-day management and long-term operations.
• Who the development and management team is.
• A financial plan highlighting funding sources, costs, and expected revenue.

5. Be Aware Of Upfront Costs

Developing and launching a casino startup is not cheap, and owners need to know what the costs will be. The final cost will depend on the type of casino, the amount and type of games, and the number of staff.  

Other expenses should also be considered, including website development, marketing, social media management, maintenance, upgrades, customer service team requirements, and whether you’re going to have live dealers or not.

6. Secure Payment Methods Are Crucial

Customers are more likely to trust a site that offers safe and secure payment methods for deposits and withdrawals. Online casinos should support various payment options, including e-payments, bank transfers, international transactions, and cryptocurrency. 

Offering a variety of traditional and modern payment methods will ensure the casino is competitive and attracts a larger audience.

7. Stay Ahead Of Trends

Online casinos need to constantly be aware of evolving technology and stay ahead of the latest trends. Virtual reality and crypto casinos are becoming more commonplace, and those that don’t incorporate this tech will be left behind.  

Even physical casinos need to remain modern by updating game machines and entertainment offerings.

Final Thoughts

Launching any kind of business can be daunting, and the gambling space is highly competitive across the world. But, by having a clear sense of your business, prioritizing your customers, and remaining competitive in the industry, you’re startup is likely to be a success.