Breaking into the world of online casinos – The Pitfalls along the way
Ad disclosure
SilentBet (SB) is proud to be the partner of numerous renowned casinos and bookmakers around the world. As such, we do use affiliate links to earn commissions (at NO cost to our readers whatsoever). These aff links help us stay a cut above our competitors, delivering top-notch content you can trust. Take a look at the Ad Disclaimer page for more information on our affiliate business practices.
As we have seen, launching a new online casino in 2024 is not an easy process. In fact, it’s safe to say it is one of the most complicated online businesses you can get involved in, especially if you do not have any experience.
You know the steps to get your website off the ground, but this does not mean you are ready to have your own business. Like any other venture, creating an online casino can have numerous pitfalls along the way, and this article will show you the most of them.
Content Navigation
Not receiving the license, you may want
The first big problem that you could face when you decide to start a new online casino in 2024 is related to the license. There are many instances where you can offer your service even if you do not have a permit, but most business owners want something else. After all, users who read our tips and tricks and decide to check if a given casino is legit will notice your brand doesn’t have any licenses, which will raise a red flag.
There are many reasons why you may not get a license from a specific gambling regulator. Aside from the fact that you may not have every document needed for the procedure, there might be instances where your website does not meet the criteria. Some gambling regulators have much more complex rules and regulations you must abide by before obtaining their seal of approval.
Teodor Todorov, Betting Expert & Writer for SilentBet
Institutions, such as the United Kingdom Gambling Commission, are famous for their strict regulations that companies must abide by. Therefore, obtaining a license from the UKGC should be more difficult than getting permission from a different regulator.
Legal Issues
It is time to address the elephant in the room and mention the biggest pitfall when creating an online casino. Regardless of the business you want to be involved in, you will need to have a good legal team behind you. This is especially true if you are interested in running an online casino because the latter is illegal in many parts of the world.
We have already mentioned some of the potential difficulties related to getting permission. This is, however, only one of the countless legal difficulties you have to go through. You may also have problems with the casino software providers, specific payment method operators, brands that do customer support for you, and much more.
All of the legal difficulties you will face mean only one thing – you will need a lot of money. Good lawyers are always expensive, and this is a department where you do not want to cut any corners. Therefore, you have to be prepared.
Teodor Todorov, Betting Expert & Writer for SilentBet
Nowadays, you can find special law firms that specialize in online gambling. Usually, these people know how to deal with some of the most common issues online casino website owners face.
Tax problems
Regardless of the type of business you want to get involved in, you will need to pay taxes. This becomes even more complicated when you are in niches, such as gambling. Although there are exceptions, if you learn more about this industry, you will see that the taxes are a lot higher than usual, especially in some countries.
Speaking of countries, this is where you can have a lot of problems because most online casino websites are available in multiple jurisdictions. As a result, you might be in a situation where you will have to pay taxes in multiple countries. It goes without saying, but you must have an excellent account if you don’t want to have problems.
One way to avoid tax problems is to register your company in specific parts of the world. Curacao is a very common example because a lot of the big online casino companies are registered there.
You need a lot of money
One thing that we have mentioned several times throughout the text so far is money. The latter is needed no matter what business you want to start, but you need a lot of it when it comes down to online casinos.
Everything costs money, starting with creating your website. You also need a lot of cash to get a license because some permits can cost well over $150,000.
Also, when talking about money, you need to hire staff. No matter how good you are, you can’t run an online casino alone, especially when it gets more customers. You will need at least one dev, support agents, people who take care of the news section (if you have such a thing), and more. All of these positions usually have fairly high salaries, so this is something you need to be prepared for.
Teodor Todorov, Betting Expert & Writer for SilentBet
Keep in mind that getting loans for business, such as online casinos, is not always easy. That’s one of the reasons why large corporations own most gambling websites.
Working with partners that are not as good as you thought
One very important step when you decide to open an online casino is marketing. You need to know how to advertise the operator you want to use. One of the most common options people go for is affiliate marketing.
Once you find the right casino affiliate, the latter should be able to bring in new customers. However, this is where it gets tricky because not all affiliates do a good job at it. Many of them will want you to offer them a CPA model and may try to abuse this.
Also, some affiliates may use illegal methods of getting new clients, which could reflect on your brand’s reputation. That’s why it is extremely important to research the market before you decide which companies to trust.
Conclusion
There are many different issues you may have to overcome when you decide to open a casino website. We tried to point out some of the most common difficulties, but we’ve barely scratched the surface. Be ready for a lot of other challenges.
Certified Betting Expert
No reviews added yet. Be the first!