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How To Start Your Own Online Casino & Poker Room Gaming Business (Page 1 of 2)
Date: June 7, 2007
Dear Entrepreneur,
Did you know that online gambling business is currently one of the fastest growing business categories in the world? In fact, the gambling industry in the United States alone generates more annual revenues, than the Hollywood movie industry, music industry and video game industry sales combined! Americans spend over $54 billion on gambling annually. The popularity of online gaming is increasing rapidly and this year 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 that they shop online.
Revenues in online gaming business rose from only $800 million to over $2 billion in 1999! By year 2006, it is estimated that online gambling industry will top over $14 billion in revenues! London-based Merrill Lynch analyst Andrew Burnett says online gambling could generate more than $150 billion in revenues by 2015. The potential of online gaming business is too big to ignore. Now is the perfect time to get onboard.
Until recently small entrepreneurs had no chance of getting into the gambling industry, because of huge capital investments, gaming license acquisitions and legal red tape. The internet eliminated all the obstacles. You can now 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 start an online gaming business:
1) Most Expensive – Design and implement all gaming software for an online casino, sportsbook and multiplayer poker room which could cost you millions of US Dollars. You will also need to obtain a gaming license to run your online gaming business, which requires approval from most governments. However, you will have full control of your gaming site, and full knowledge of the source code of your gaming software. In addition, no royalties are paid out to a gaming software development company.
2) Average – Become a Licensee of an Online Gambling Software Provider. This is a far less expensive option and the client receives all the gambling software and sometimes even the equipment necessary. It is also the most popular option for both licensed land-based establishments as well as entrepreneurs. Costs range from $30,000 to $350,000. The average licensing fees are around $150,000 (this usually includes marketing costs). In most cases a royalty is paid to the gaming software provider as a percentage of the monthly “take” or “drop” (gross profit). Usually the gaming software provider has payment processing (merchant account providers) already set up for a fully turnkey operation.
3) Most Affordable – Become a Sublicensee of an existing Licensee. This is the least expensive option to start an online gaming business. Costs range from $5,000 to $60,000. The sublicensee is responsible for all the marketing and receives a smaller percentage than a full licensee (2), because royalties paid to the licensee are much higher.
International Climate Change Lottery a Possibility
Lotteries are popular around the world and provide funding for a wide variety of government programs, charities, veterans groups and many other organizations. Despite the ongoing global recession lotteries continue to do well and make a profit. In the US most states operate lotteries and there are two major multi state lotteries, Powerball and Mega Millions. Several countries have national lotteries such as the UK and Canada. In Europe the cross border lottery EuroMillions is popular and offers huge tax free jackpots. So far no one has implemented a global lottery but that may change if participants at the next climate change meeting in Cancun Mexico have their way.
The idea of a global lottery has been around since the 1970s and is has been estimated that the global lottery market is worth about $126 billion dollars a year with gross profits amounting to $62 billion dollars a year. Climate change is a controversial topic in many countries but proponents of the global lottery say that it could fund a wide variety of research projects. Revenue generated by the climate change lottery would be channeled to one or many climate research funds.
There are several hurdles that would have to be overcome. Opposition from established government sanctioned lotteries is almost certain. It has been estimated that the global lottery could siphon profits from other lotteries to the tune of $6.2 billion dollars a year resulting in diminished profits for state and national lotteries. Political opposition from any of the first world countries could easily kill any lottery deal. In some countries religious concerns could prevent participation in a global lottery and ethical concerns would have to be addressed.
A global climate change lottery would attract many people who do not normally participate in state and national lotteries. Climate change is a hot topic and many have strong views in favor of climate research and would probably participate and buy lottery tickets for a climate change lottery. The sale of tickets for the climate change lottery would have to be addressed. In Europe, New Zealand and Australia players can purchase online lottery tickets but in the US recently passed online gaming laws and vague regulations could pose a problem for ticket sales.
Some proponents of the climate change lottery have suggested using the EuroMillions lottery as a model for the global climate change lottery. EuroMillions is a joint multi nation lottery where the bets of participants in nine countries are pooled into a larger jackpot. An International Climate Change Lottery could be a step in the right direction and would not cost taxpayers a dime!