Did you understand that online gambling business happens to be one of the fastest growing business categories on earth? 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 twice as many online gamers as there are Internet shoppers. Around 43% of Chinese Internet users play games online, while just 16% report 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 more than $150 billion in revenues by 2015.
Until recently small entrepreneurs had no potential for getting into the gambling industry, due to huge capital investments, gaming license acquisitions gclub and legal red tape. The net eliminated most of the obstacles. Now you can 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 begin an online gaming business:
1) Most Expensive – Design and implement all gambling software for an online casino, sportsbook and multiplayer poker room that could set you back 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 will have full control of one’s gambling site, and full familiarity with the origin code of one’s gambling software. Additionally, 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 begin an online gambling business and you will receive most of the gambling software and sometimes even the equipment necessary. It is also the most popular option for both licensed land-based establishments along with entrepreneurs. Costs range between $30,000 to $350,000. The average licensing fees are about $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 create for a fully turnkey operation.
3) Most Affordable – Become a Sublicensee of an existing Licensee. Here is the most inexpensive option to begin an online gambling business. Costs range between $5,000 to $60,000. The sublicensee is responsible for the 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 in turn, the respective countries gain significant licensing fees and tax-generated revenues.
As Internet use spreads across the planet, online gambling business will remain one of most profitable online business opportunities of the 21st century.