Starting an Online Casino in 7 Steps: Everything You Need to Know

The timeless adage ‘if you fail to plan, you plan to fail’ is just as true in the iGaming industry as anywhere. Therefore conducting thorough market research and producing a well-structured business plan are essential first steps for success. 

We can break down this phase of opening an online casino into three distinct areas: 

• Identifying a target audience
• Defining a sustainable business model
• Establishing clear financial projections 

This detailed level of planning early on will help to lay the foundation for a profitable and legally compliant platform from the get-go.

Analyse the Target Market

The first step in launching any successful online casino is to define a market to target. This can result in a more focused and less scattergun approach to the overall plan. The global online gambling market is growing at an unprecedented rate and is expected to exceed $153.57 billion by 2030. 

However, this growth is not spread equally across all markets, so it’s important to consider the following key factors before settling on a target market:

• Regions and Territories: European markets such as the UK and Sweden have well-established regulations and mature player bases while emerging markets in Latin America, Africa, and areas of Asia offer high-growth potential but higher risks.
• Audience: Defining the ideal customer profile helps to shape future game offerings, promotional strategies, and payment options.
• Competition: Analysing direct competitors, their game portfolios, promotional strategies, and user experience helps to differentiate a new platform and identify potential gaps in the market.

Define the Business Model

Choosing the right business model is crucial to the long-term success of any online casino platform. Here are the three primary models to consider:

• A Business-to-Consumer Online Casino: The operator runs their own branded platform, handling customer acquisition, marketing, and operations. This model requires significant investment to set up but offers full control over revenue and branding.
• White-Label Solution: A pre-built casino platform provided by a third-party supplier, such as Agreegain. This model allows operators to launch quickly with minimal setup or major financial investment. A white-label approach can reduce technical complexity but will feature revenue-sharing agreements with the provider.
• Affiliate-Based Online Casino: Instead of operating a full casino, businesses can promote existing platforms through affiliate marketing. This model requires less upfront investment but relies heavily on commercial contracts, content planning, SEO and marketing expertise. 

Key Financial Considerations

Setting realistic financial expectations and assessing all the startup expenses is key to launching and sustaining an online casino. By conducting thorough research and planning effectively, casino startups can put their platforms in the best possible position for long-term success.

Operators should account for the following costs:

• Setup Costs: Licensing fees, software provider contracts, game development, website design, and marketing can cost upwards of $500,000 depending on the jurisdiction and size of the operation. 
• Expected ROI: While returns vary, successful operators can achieve a profit margin of 20-30% once a steady player base is established. This needs to be calculated once all costs are accounted for to produce a realistic projection. 
• Funding Options: Self-funding, venture capital, or partnerships with gaming software providers can help mitigate steep startup costs and smooth the road ahead. 

One of the most critical steps in launching a successful online casino platform is obtaining a valid gambling licence. It’s not just a legal requirement to operate under a recognised regulatory body but also a fundamental part of building credibility and trust with players, financial institutions, and software providers. 

A legitimate gambling licence enables operators to legally offer casino games and other gambling services while adhering to responsible gaming practices. Licensed operators benefit from:

• Legitimacy and Trust: Players are more confident engaging with licensed casinos, knowing legal frameworks protect them.
• Payment and Banking Access: Financial institutions and payment providers typically require a valid licence to process a platform’s transactions.
• Software Partnerships: Game developers and platform providers prioritise working with fully licensed operators. 
• Regulatory Compliance: A licence ensures adherence to local gambling laws, preventing potential legal disputes and fines.

Key Licensing Jurisdictions

Selecting which licence to apply for in which jurisdiction will depend on a platform’s target market or territory, budget, and regulatory requirements. Here are some of the most common and reputable licensing authorities in the online casino industry:

1. Malta Gaming Authority (MGA)

• One of the most respected regulatory bodies in the iGaming industry.
• Known for stringent player protection measures and strong compliance regulations.
• Its licences are recognised by major financial institutions and game providers alike.
• Best suited for operators targeting European online casino markets.

2. UK Gambling Commission (UKGC)

• Highly regarded across the industry for its strict compliance and player safety.
• Requires robust anti-money laundering and responsible gaming protocols.
• An essential licence for operators looking to access the UK market.
• Highly focused on fair play, financial stability, and data security.

3. Curacao eGaming

• Typically the most cost-effective and widely accessible licensing option.
• Offers more relaxed regulations, making it attractive for new online casino operators.
• Allows operators to serve multiple international markets with a single licence.
• Marginally less stringent compliance requirements compared to MGA or UKGC.

4. Gibraltar Regulatory Authority

• Well-respected within the European and global iGaming industry.
• Offers tax advantages and a business-friendly regulatory environment.
• Requires high compliance standards but provides stability for operators.
• Best suited for established online casinos looking to expand internationally.

Legal Requirements: KYC & AML Policies

To comply with local gaming regulations, licensed casinos must implement Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. These measures help prevent fraud, money laundering, and underage gambling, ensuring a secure and responsible gaming environment for all players in the following ways.

Know Your Customer (KYC)

• Operators must verify player identities before allowing any withdrawals.
• Players are required to provide documents such as passports, driver’s licences, and utility bills to verify their identity and physical address.
• KYC can help to prevent identity theft and underage gambling.

Anti-Money Laundering (AML) Compliance

• Casinos must monitor financial transactions to detect and act on suspicious activities.
• Operators are required to report high-value transactions to relevant authorities.
• Ensures that illicit funds are not funnelled through online gambling platforms.

Selecting the right casino software provider is one of the most critical decisions when launching an online gambling platform. Using high-quality software helps to ensure a seamless user experience, along with robust security. 

Picking the right provider will also provide smooth integration of essential online casino features such as games, payment processing, and player management systems. This has a knock-on effect in improving player retention and the overall success of the platform.

Understanding Software Solutions: Turnkey vs White Label

Operators have a choice between two common options when looking for a software solution, using turnkey or white-label platforms. Here are the key differences between the two:

• Turnkey Solutions: This option provides a complete, ready-made system that provides full ownership and operational control. Operators can customise their brands, choose game offerings, and implement unique marketing strategies using turnkey solutions. This path requires a larger initial investment but offers greater flexibility and scalability in the long term.
• White Label Solutions: This option provides a pre-built platform that allows operators to launch under an established provider’s existing licence and infrastructure. The model enables a faster time to market and reduces regulatory burdens, but it often comes with revenue-sharing agreements and limited platform customisations.

Custom-Built vs Pre-Made Software

Beyond turnkey and white-label solutions, operators can also decide between the following two options:  

• Custom Built Platforms: These offer full control over the casino’s design, features, and user experience. However, they require significant time, financial investment, and technical expertise to get started.
• Pre-Made Software: This option enables platforms to launch faster, leveraging existing frameworks developed by leading providers. While it limits customisation, it ensures stability and compliance with industry standards.

User Experience and Mobile Optimisation

A successful online casino must deliver an exceptional user experience, making it as easy as possible for users to load up their casino games and start playing. Partnering with the best casino software provider will help a platform achieve this. 

Mobile compatibility for seamless casino use across devices is an essential consideration when picking a software provider. As mobile gaming continues to grow globally, users want the option to play on screens of all sizes. Fast loading times are equally key to minimising disruptions and retaining players who won’t tolerate laggy online casino sites.

Curating a well-rounded game library is a key element to attracting and retaining online casino players in an increasingly competitive industry. The appeal of any online casino can be broadened by hosting a variety of high-quality and popular game titles. It’s important to focus on the following two areas to build a strong game portfolio:

Decide on Game Types 

Including a balanced mix of game types that cater to different player interests is a key consideration when first looking to build a game portfolio. The most popular categories of casino games include:

• Slot Games: Video slot machines are a mainstay of any online casino. They come with various engaging themes and can have a range of engaging bonus features and even progressive jackpots.
• Video Table Games: A virtual version of classic casino table games such as blackjack, roulette, and poker.  
• Live Dealer Games: Live-streamed casino games with real dealers bring the atmosphere of a land-based casino to online players. The options range from classic table games to interactive game show-style live streams.  
• Sports Betting: Integrating a sportsbook into an online casino platform allows players to place wagers on various sports, beforehand or in real-time. This can help to broaden a casino’s market appeal.

Partner with Game Providers for a Diverse Selection

As mentioned above, partnering with the right game providers is crucial to ensuring quality, variety, and reliability among game offerings. Working with multiple game providers allows platforms to offer a broader selection of games and keep their content fresh by hosting the latest releases.

Some of the industry’s top online casino game providers include:

• Evolution Gaming: A leader in live dealer games, known for its immersive experiences and innovative streaming technology. 
• Pragmatic Play: Specialise in a wide variety of slots and live casino games, with a strong emphasis on player engagement and immersive experiences.
• Hacksaw Gaming: Offers a selection of exciting and creative instant win, scratch cards and slot games, known for its distinctive style and high-quality design.

The next stage in launching an online casino is to ensure that seamless and secure payment processing is in place. Players expect a frictionless experience when depositing and withdrawing their funds. Therefore, offering a variety of trusted payment methods while maintaining top-tier security standards is essential.

Offering A Solid Mix of Payment Options

To appeal to a broader audience, providing a diverse range of payment options is always advisable. It’s important to consider that different markets have varying preferences, so a one-size-fits-all approach will seldom work. 

Here are the key payment methods every online casino should look to support:

• Credit / Debit Cards: Major card brands like Visa and Mastercard continue to remain the most commonly used deposit methods. They are highly trusted by users thanks to their convenience and familiarity.
• E-wallets: Services such as PayPal, Skrill, and Neteller enable faster transactions with added security. They are highly appealing to players who prefer digital banking solutions and mobile payment methods.
• Cryptocurrencies: Bitcoin, Ethereum, and other digital currencies are gaining traction due to their anonymity, speed, and low transaction fees. While not yet widely accepted in all jurisdictions, crypto can provide a competitive edge when it comes to payments. 
• Bank Transfers / Alternatives: Some players prefer direct bank transfers, utilising their existing payment accounts. Also consider region-specific options like PaySafeCard, Trustly, or Sofort that offer alternative ways to make online casino transactions.

The Importance of Fraud Prevention and Payment Security 

Security is paramount in the online gambling industry. Players must have complete confidence that their financial data is protected at all times. 

Creating a trustworthy environment where players feel confident depositing and withdrawing funds helps to enhance player retention and long-term business success.

To establish credibility and trust, operators must enforce the following robust security measures, safeguarding both the platform and its users from fraud, data breaches, and other active cyber threats. 

• SSL Encryption and PCI Compliance: End-to-end encryption helps to protect all financial transactions against cyber threats. Compliance with the Payment Card Industry Data Security Standard (PCI DSS) is essential for handling card payments securely.
• Anti-Fraud Systems: Implementing AI-driven fraud detection tools can help identify suspicious activity, preventing chargeback fraud and money laundering attempts.
• Two-Factor Authentication (2FA): Requiring an extra layer of authentication for withdrawals and logins helps protect players from unauthorised account access.
• KYC and AML Policies: Strict KYC verification ensures all players are who they claim to be, reducing the risk of fraud and illegal activities. Regular AML checks help detect and report suspicious transactions in compliance with regulatory requirements.

Players are the lifeblood of any online casino and a platform’s success depends on attracting, engaging and retaining players. A well-thought-through marketing and player acquisition strategy is crucial in achieving this. 

From SEO to promotional campaigns, there are plenty of tactics that can be strategically implemented to maximise a new platform’s visibility and engagement. This section provides an overview of the different strategies available to attract and retain active online casino players. 

Leverage SEO Content for Organic Traffic

Search engine optimisation (SEO) can be an effective long-term strategy for driving organic traffic to an online casino. Using relevant keywords and creating high-value content that users are searching for can improve a site's ranking position in search engines. 

Here are the three main methods that platforms use to leverage their content to bring in organic (non-paid) web traffic: 

By optimising your website with relevant keywords, high-quality content, and a seamless user experience, you improve your site's ranking on search engines.

• Keyword Optimisation: Using appropriate search terms like ‘best online casino’ or ‘real money slots’ across a platform to help with ranking. 
• SEO Content Marketing: Creating informative blog posts, game guides, and industry news to engage users and establish credibility with potential users.
• On-Page and Off-Page SEO: Ensure fast-loading pages, mobile responsiveness, and quality links coming into the platform from reputable and authoritative sites.

Utilise Affiliate Marketing and Strategic Partnerships

Affiliate marketing is a popular and cost-effective way to expand reach and attract high-intent players. Partnering with reputable affiliates is an efficient way to tap into established audiences who are looking for a new platform to try.

• Affiliate Networks: Join platforms to connect with experienced casino affiliate sites and quickly expand platform reach.
• Commission-Based Incentives: Revenue-sharing or CPA (cost-per-acquisition) models can motivate affiliates to push a site.
• Brand Partnerships: Collaborate with industry authorities and gaming streamers to boost brand awareness to an engaged audience. 

Deploy Bonus and Promotion Strategies

Online casino bonuses and promotions are one of the main methods of player acquisition and retention. Offering competitive rewards encourages potential users to sign up and continue playing at a specific site.

Here’s an overview of the main bonus types offered by online casinos:

• Welcome Bonuses: First-time deposit bonuses and free spins attract new players and reward them for signing up.
• Loyalty Programs: VIP perks, cashback, and exclusive promotions act as ongoing rewards to loyal players. It’s common to have a multi-tiered program with increasing reward value that mirrors player loyalty. 
• Seasonal Promotions: Holiday-themed offers, tournaments, and limited-time bonuses help to keep players engaged and make a casino feel relevant.

Engage Social Media Marketing 

Social media platforms provide direct engagement with potential players while strengthening brand visibility. A strong presence on Facebook, Instagram, X, or YouTube can help generate buzz around a new casino brand. 

Here’s why social media marketing can be beneficial: 

• Building Community: It’s possible to build a loyal following by creating engaging social posts, hosting giveaways, and interacting with followers.
• Influencer Collaborations: Working with gaming influencers and casino live streamers is an ideal way to showcase a platform to a primed audience.
• Paid Advertising: Targeted ads on social media platforms can help to drive traffic and conversions from people already searching for casino content.

The final step on the path to operating a successful online casino is to stay compliant with industry regulations and deliver exceptional customer support. Strict adherence to legal requirements builds trust and helps to create long-term success.  

A solid focus on compliance, player protection, and responsible gambling helps to create a safe and engaging environment for all users. This player care aspect can even be leveraged to differentiate an online casino platform in the highly competitive iGaming industry. 

Regulatory Compliance: A Non-Negotiable Online Casino Requirement

Online gambling is one of the most heavily regulated global industries. Failing to comply with legal obligations can lead to severe consequences for a casino platform, including fines, licence revocation, and reputational damage. 

To remain compliant at all times, operators must stay updated on the latest regulations in their licensing jurisdictions. This includes implementing the following key measures that were detailed in Step 2 of this guide:

• Know Your Customer (KYC) Protocols: Verifying player identities to prevent fraud and underage gambling.
• Anti-Money Laundering (AML) Policies: Ensuring secure financial transactions and preventing illicit activities.
• Fair Play & Responsible Gaming Practices: Using certified random number generators (RNGs) and offering self-exclusion tools to protect vulnerable players.
• Data Protection & Security: Implementing encryption technologies to safeguard player information and payment details.

Offering Stella 24/7 Player Support

Making players feel supported and valued so they are keen to return is a fundamental aspect of building long-term loyalty and a thriving online casino platform. Offering top-level player support goes a long way to achieving this.

Offering round-the-clock assistance via a mix of the following support channels ensures players receive swift responses and solutions to their concerns:

• Live Chat: A preferred option for most players is to get an instant response from a human support team member.  
• AI-Powered Chatbots: These can be used out of hours to help direct players to the appropriate help articles for their queries. 
• Email Support: Ideal for less urgent or more complex queries. 
• Phone Support: Reassuring for players but can be costly to run, especially with a high volume of calls. 
• FAQ and Help Centre: Providing comprehensive answers to queries in a wiki-style can help to answer simple queries. This prevents the need for unnecessary contact from players. 

Launching a successful online casino requires careful planning and execution, following the seven critical steps outlined above. From securing the correct licences to choosing reliable software providers and payment options, every detail matters. 

Alongside the technical setup, it’s equally important to implement strong marketing and retention strategies to build a solid player base. While the planning and launch process looks complex, rapid growth and success are achievable by actioning a clear business strategy and having a laser focus on user experience.

At Agreegain, we specialise in guiding online casino operators through every step of the journey. Our experts ensure full compliance from day one, helping you lay a strong foundation for long-term success.