Tag Archives: revenues
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.
Lottery Myths Exposed
Lottery Myths Exposed
There are many myths surrounding lotteries and most of them that you hear are just that-myths. Perhaps the most commonly heard lottery myth is that you have a greater chance of being struck by lightning than you have of winning the lottery. While this may be partially true for mega jackpot lotteries like Powerball and Mega Millions many lottery games with smaller payouts have surprisingly good odds in favor of the player. Every year there are thousands of lottery players who have won prizes of $10,000 or more.
Many moralistically inclined and the self righteous claim that lotteries are a ‘tax on the poor.’ To be profitable lotteries must target those able to afford lottery tickets. Most lottery players have disposable income which enables them to play various lottery games. Lottery players are a varied lot and many wealthy people routinely play lottery games. In Ohio a millionaire won the lottery not once but twice.
Many people also like to claim that lotteries are some sort of ‘stealth tax.’ Again this is pure unmitigated hogwash! Taxes are compulsory and if you don’t pay you go to jail. No one has ever been imprisoned for failing to purchase a lottery ticket. Playing the lottery is the individual’s choice.
Lotteries cause compulsive gambling. This is probably one of the most ridiculous claims made against lotteries. This attitude about lotteries is rare in Europe but for some reason persists in the US. In the first place compulsive gamblers require constant action and lotteries do not fill that need for those with gambling problems. Lotteries do not cause gambling addiction and studies have shown that gambling addiction is not fed by lotteries. Most compulsive gamblers favor casino games and some online gambling. The online gaming industry has gone to great lengths to identify problem gamblers and many land based casinos bar problem gamblers.
Another big lottery myth is that only winners get any benefit from lotteries and winners are few. Most state lotteries benefit and fund a wide variety of government services. Most states use the greater part of lottery generated revenues for education including scholarships for economically disadvantaged students who would not be able to afford college or professional schools without financial help. Lottery generated revenues have also been used to fund infrastructure projects and programs for the disabled, blind and senior citizens.
There are probably other lottery myths but these are the most commonly heard. If you are a lottery player and someone tries to tell you these myths are true you will have some ready answers!