Gaming was once the realm of arcades, while gambling was the forte of physical casinos. However, the modern age of the smartphone has made them both something that can be accessed and enjoyed in the palm of our hands.
Similarly, the different gambling types nowadays include everything from sports betting to card and table games that can all be played from the comfort of one’s own home. Research and development into the various types of gaming have unearthed a treasure trove of potential benefits for both the players and the sites that host them.
All that growth has also turned gaming into one of the most lucrative enterprises around for entrepreneurs with an interest in the market. If you’re one of them, here are some tips for starting a gaming business.
Different Types of Gaming Businesses
Before we delve into the tips themselves, it’s probably a good idea to first look at the different options available to such businesses.
Traditional Gaming
The gaming world in general has grown into a diverse scene of different players and developers. A multi-billion dollar industry, its true scope is impossible to define under one umbrella. The different types of games and simulators out there alone is proof of this.
With subgenres encompassing everything from first-person shooters, racing games, simulations, sports games, strategy games, fighting games, and puzzle games, there’s virtually no limit to what’s available. The gaming world has burgeoned into a professional platform too, turning ordinary gamers into celebrities who leverage their gaming skills all the way to the bank through professional competition.
iGaming
On the other end of the spectrum, iGaming has revolutionized modern gambling. Between online casinos, betting apps, and a myriad of online gambling sites, there’s never been a better time to enjoy one of the world’s oldest forms of entertainment. Whether you’re a card player, enjoy table games, betting on sports, or the thrill of slot machines, iGaming platforms have something for everyone.
The plethora of digital solutions offered these days now means a tech-reliant business can segment the different requirements of starting up by outsourcing various key aspects to other companies that specialize in them. According to Global Edge, more than 3.3 billion people worldwide now play games, with revenues from the industry exceeding $180 billion this year. With that kind of commercial potential, there’s no time like the present to start a gaming business, and here are five tips to consider if you’re looking to get one off the ground.
1. Plan and Research
Before diving into starting an online casino or other kind of gaming business, like any business venture, performing market research is always a good idea. This can provide you with insights into important factors like start-up costs, who your key customer base is, and the best strategies for market penetration.
Given the fact that industries like online gambling are heavily regulated, research can also point you in the direction of the legalities involved. Gathering as much data as possible on your market and the legal terrain it operates in will help provide a better overall picture of the business’s feasibility.
2. Have a Business Plan
Once the research phase is complete, drawing up a business plan takes the data you’ve collected and collates it into an actionable outline of how to proceed. The plan does not have to be unreasonably long, detailed, or cater to every single eventuality. However, even a basic one can provide a calculated understanding of potential risks and the possible cost-benefit ratios involved.
As an added benefit, funding can also be catered for and a business plan becomes especially relevant if the business will be reliant on attracting investors to provide or contribute its start-up capital. The kind of analysis that goes into such a plan should also take into account factors like competitors, what the marketing strategy will entail, forecasts for revenue, expenses, future growth, and expansion.
3. Get the Right People
Once there’s a plan in place, provided sufficient capital is raised, the next logical step would be to find and recruit the right people to put it into action. Whether the business entails traditional gaming in the form of video game development, a platform to host online games, an app, or iGaming, a competent and experienced team will be required.
There will likely be various aspects that will need specialized attention. From the tech side, having suitable talent is inevitable since, for online gaming businesses, digital infrastructure will need to be developed.
Other important business areas where specialized personnel will be required are finance, accounting, and legal guidance. However, as mentioned, many tasks and requirements can be outsourced to other firms that specialize in them. Once the groundwork is complete, what’s left will be the day-to-day running and maintenance of the business.
4. Ensure the Legalities Are Taken Care of
In the case of online casinos, it is especially important to ensure that all legal requirements are met. This will likely require professional help from a suitable legal advisor. It’s important to note that in some countries, online gambling is illegal altogether. Even when it isn’t, the industry is still often heavily regulated.
While the legal requirements will differ from place to place, common legal requirements will include making sure all business licenses and permits are applied for and acquired in terms of the relevant regulations. There are likely to also be stringent financial regulations to follow to ensure there are adequate reserves to cover player winnings, security features to prevent things like money laundering, and financial stability of the business at all times.
5. Software Requirements and Payment Methods
Since modern gaming businesses often exclusively run on digital platforms, the software and development required for them need to be of good quality. This requires specialist help and must ensure regulatory requirements are met. For example, to ensure fairness for the players, most software for online casinos will feature encrypted algorithms and the use of Random Number Generators (RNGs).
Since, like traditional business requirements, there is also real money involved with gaming businesses, both for the convenience of players, and ensuring security, adequate digital solutions should be made available for players to top up accounts, make in-game purchases, and for players to withdraw winnings or balances. Common payment methods include credit cards, catering to e-wallets like PayPal, or voucher systems that can be pre-purchased and loaded onto a player’s account. Either way, providing variety, convenience, and security should be the top priorities for a successful gaming business.
