Online casinos can turn unbelievable profits, but before the money starts rolling in, operators need a clear picture of exactly how their business will function — known as a business model. iGaming software and business solutions provider Slotegrator outlines why a business model is essential for online casinos.
The online casino industry is unique in many respects. But in one respect, it’s exactly like every other industry: new enterprises absolutely must have a detailed business model. Why? A business model outlines the process, partnerships, and resources your business will use to generate revenues — useful not only for your own operations, but for attracting investors.
A business model will help to clarify the main vision and make sure that you know what you’re doing. What are the main elements of a business model?
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A product. You need to define exactly what your customers are getting from you. For online casinos, this seems a little cut-and-dry (betting on casino games) but it’s better to be specific. Which games, exactly, are you offering, which bonuses are you adding – think it all through to figure out your unique selling point.
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A target market. Determine the exact demographic you envision playing on your platform: age, gender, game preferences, playing habits, level of affluence, and cultural opinions on gambling. You need to know your players as well as possible.
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Investments. You have to spend money to make money. It sounds trite, but it’s true; expenses will be one of your biggest concerns. How much are you spending on material and immaterial resources? How much does it cost to acquire a new player, and then to retain them? There must be a detailed investment plan with predictions of payback and profit.
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Licensing. You should never operate an online casino without a license. The license you will obtain will depend on your target market; oftentimes, you’ll need a license from your market of operation.
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Marketing strategy. It should be a prominent part of your business model. Even if your casino is tailored perfectly to your audience’s preferences, they won’t come knocking if they don’t know you exist. How are you going to bring them in? Also, it’s crucial to describe future partnerships, promotional channels and customer segments.
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Technical facilities. Online casinos require sophisticated software and other solutions. You’ll need to plan out your partnerships with other companies such as software providers, payment system providers, and game content providers. Your hardware and software are the foundation of your business.
“When making your business model, you have to carefully account for every cost that you’ll be facing. Neglecting necessary costs during the planning phase could mean that all of your plans go out the window once the hidden costs unveil themselves,” says Yana Khaidukova, Managing Director at Slotegrator.
You can find a new article about a business model for an online casino at Slotegrator Academy.
Original article: https://www.yogonet.com/international/news/2023/06/19/67566-slotegrator-analysis-what-does-an-online-casino-business-model-look-like
