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Setting up an online gambling business comes with its own unique array of challenges, whether that be branding, licensing or even product development.
In the latest edition of BetConstruct’s ‘back to basics’ series addressing all things gambling, we take a look at seven key criteria that must be met when setting up a new online gambling business – and, more importantly, how to avoid any pitfalls on the way.
The first consideration for any prospective operator is to take a closer look at the market in which they choose to operate.
As you can imagine, every market requires a different approach – bettors in Argentina may have different preferences to those in the UK, not to mention the difference in legislation.
Before entering any new market, advises BetConstruct, you must look at the individual nuances of that specific jurisdiction. The firm noted: “The market-specific jurisdiction is the backbone of any firm in igaming, hence you should observe all laws, business rules and regulations to ensure having all the necessary permissions.
“While intending to provide gambling services in a specific territory, you should apply for a licence in that particular country, as there are countries where local law has supremacy over international jurisdiction.
“With each jurisdiction having different legal standards to follow, deciding on the region of operation and its legal background can be rather challenging. However, it is the most vital step you should take to ensure the legal functioning of your business.”
Once the market has been selected, the next step is to acquire a licence. Without this, no company can offer betting products or services to players within that jurisdiction, so this is arguably the most important point to consider.
To make things slightly more complex, each market has different licensing requirements, and with that, varying licensing costs.
In its blog, BetConstruct draws particular attention to six markets: Denmark, Germany, South Africa, Sweden, the United Kingdom and the United States.
As well as these ‘one to watch’ markets, there are several other international markets that are worth considering including Alderney, Curacao, Gibraltar, Isle of Man and Malta. The significant aspects to consider when selecting a jurisdiction are licensing criteria, reputation, the difficulty and duration of the application procedure, upfront and annual fees and taxes.
BetConstruct explained that when partnering with new operators, it offers legal support to ensure that they can enter new markets. Its white label offering comprises a package of igaming products and an opportunity to function under the licences of Malta, Curacao, France, and the UK.
On the tick list of things to consider when setting up a new gambling business is vertical choice, platform providers and setting up a website. Choosing a marketing strategy creation is key to helping an operator promote its online gaming business to potential players.
According to BetConstruct, not only can an effective strategy help you tap into new audiences, it can also help position your business more strongly in an industry which is becoming increasingly competitive.
“One of your prime objectives should be positioning yourself as a reputable company in a rather competitive market,” it added. “The ideal approach is to provide high-quality games from trusted providers on a platform with great UX to keep the players engaged and excited.
“Sound marketing strategy and ongoing campaigns are the key factors in enhancing the company name, attracting new players and keeping the existing ones. So bonus systems and retention programs are the best solutions in this context.
“Your campaign should include loyalty programs, such as sign-up bonuses, deposit bonuses, free bets etc. As a part of your strategy, retention methods are a standard way of keeping the existing players.”
You can read BetConstruct’s blog on setting up an online gambling business.
