Did you know that the online gambling industry is one of the fastest-growing business sectors in the world? Online gaming is growing in popularity and has experienced significant growth in Europe as well as Asia this year. Online gamers are nearly twice as popular in Malaysia and China than they are among Internet shoppers. Nearly 43% of Chinese Internet users play online games, while only 16% say they shop online.
Online gaming revenues grew from $800 million to more than $2 billion in 1999. It is expected that the online gambling industry will reach $16 billion by 2010. Andrew Burnett, a Merrill Lynch analyst based in London, believes that online gambling could generate over $150 billion in revenue by 2015.
Because of the huge capital investment, acquisition of gaming licenses, and other legal red tape, small entrepreneurs were not able to get into the gambling business until recently. All of these obstacles are gone with the internet. Online casinos, sportsbooks and multiplayer poker rooms can be owned and promoted by you. You can generate the revenues that you have always dreamed of.
There are three ways to start an internet gaming business.
1) The most expensive – You will need to design and implement all the gambling software required for an online casino or sportsbook, as well as a multiplayer poker room. This could run you millions of dollars. To run an online gambling business, you will need a gaming license. This approval is required by most governments. You will still have complete control over your gambling site and the source code for your gambling software. A gambling software company is not entitled to any royalties.
2) Average – Become an Online Gambling Software Provider Licensee. This option is far more affordable than starting an online gambling business. You will get all the software and sometimes the equipment you need. This option is popular for entrepreneurs as well as licensed land-based businesses. The cost of licensing can range from $30,000 to $350,000. License fees average around $150,000, which usually includes marketing costs. Most cases, a royalty is paid to the software provider for a percentage of the monthly take or drop (gross profit). Most gambling software providers have payment processing (merchant accounts providers) set up to make it a completely turnkey operation.
3) The most affordable – Sublicense an existing licensee. Ewallet Online Casino Malaysia This is the cheapest way to start an online casino. Prices range from $5,000 to $60,000. Sublicensees are responsible for all marketing activities and receive a lower percentage of royalties (2) than full licensees.
Online casino and poker room operators must apply to the sovereign governments of countries that allow online gambling. They will issue licenses to operate legal online gambling businesses. Online gambling operations are registered by casinos and poker rooms, which in turn allows them to collect significant licensing fees and tax-generated revenue.
Online gambling will be a profitable business opportunity in the 21st Century as more people use the internet.