Can you open an online casino yourself?
The new year is just around the corner and many people have made resolutions for 2025. Some gambling fans may have come up with the following idea: "I should open an online casino myself and make money from it." In fact, the German gambling market is currently stronger than ever - and statistics suggest that turnover will continue to rise steadily over the next few years. Good conditions for casino operators. But how realistic is it to enter the business - what do you need to consider?
The online casino business appears to be a real jackpot venture for operators.
You should get a slice of this pie. But how do you enter the lucrative competition? Simply put virtual machines live on a website and cash in? Not quite. Getting started in the digital casino world is relatively complex - characterized by strict regulations, intense competition and considerable investment. Nevertheless, it is possible - provided you have perseverance, capital and entrepreneurial courage. We also recently asked ourselves how to open a casino and what it costs to run one.
But is it really worth the bet, what do you need to consider and is a successful entry into the online casino business really realistic? Let's take a closer look at whether this dream could actually pay off!
What do I need to start an online casino?
Opening your own online casino sounds like a tempting adventure - but it takes more than just an idea to gain a foothold in this hotly contested industry. Behind the shiny facades of digital gambling lies a complex mix of creative concepts, legal hurdles and lots of investment.
1. Vision and business plan: The cornerstone of success
The first step in any successful business is a well thought-out business plan. In the online casino sector, it's not just about numbers, but also about creativity. A unique concept with clear unique selling points is crucial in order to stand out from the competition.
Tip: It is important to consider how your casino can stand out from the crowd. An original theme or special features may make the difference. A comprehensive competitor analysis forms the basis for appropriate decisions.
Cost: Depending on the complexity and professional help for creating the plan, you can expect costs of around 5,000 to 20,000 euros. Of course, you can also do it yourself. However, with the support of a professional, the chances of getting banks, lenders and other investors on board are much greater.
2. Capital: nothing happens without moss
Setting up an online casino is not cheap. Here are the rough costs to get started:
- Casino platform: A solid software solution that includes games and central management features will set you back around 200,000 to 350,000 euros.
- Website: A user-friendly, professional platform costs between 10,000 and 70,000 euros.
- License: The fees for a German online gaming license start at 16,500 euros. But be careful - the relevant authorities also require a certain amount of liquidity, which can quickly lead to a situation where 250,000 euros or more must be shown as reserves. After the major raid on tipster in spring 2023, the press even reported that a new license would require a whopping 5 million euros as security. However, the requirements here are of course completely different to those for a new opening.
- Marketing and advertising: To generate attention, at least 50,000 to 300,000 euros should be budgeted for targeted campaigns.
- Profit payouts: In the first few years, casino operators must expect profit payouts of at least 200,000 to 500,000 euros, which must of course always be made promptly.
Tip: All of these points should of course be included in the business plan to give lending banks a comprehensive impression. However, it is also important to emphasize your market strength.
3. Legal protection and licenses: you can't do without them
Anyone wishing to operate an online casino in Germany must be familiar with the State Treaty on Gambling (GlüStV) of 2021. An experienced lawyer can help you avoid pitfalls. Licensing requires detailed proof of financial resources, personal suitability and protection of players from gambling addiction. There are also many dangers that may require further legal advice but are less obvious: For example, German online casinos have recently warned against fake profiles.
Tip: License applications can vary from state to state - prospective casino operators can expect a lot of paperwork. A legal advisor can help you to work your way through the documents and evidence with confidence.
Total cost estimate for legal protection: Between 30,000 and 115,000 euros, depending on the specific requirements and scope of legal support.
4. Bringing experts on board: teamwork pays off
A successful online casino requires expertise. These experts should definitely be involved:
- Project managers for a smooth process.
- Web designers for a balanced, convincing design and a functional user interface.
- Software developers for the integration of the casino platform.
- Market analysts to study the competition and target groups.
- Marketing professionals to make your own brand known.
Tip: Without business and industry knowledge, it will be difficult - a strong business sense is a must. A specialized agency can provide effective support. However, such services are also very expensive.
Cost point: The involvement of experts is essential, but entails considerable costs. For services from specialized professionals, you should expect to pay between 50,000 and 150,000 euros - (again) depending on the level of support and the specific requirements of the project.
5. Marketing: visibility is everything
The best casino is useless if nobody knows about it. An individual marketing strategy - from SEO and social media campaigns to collaborations with influencers - is essential. Speaking of which: at the beginning of December, the well-known casino streamer ROSHTEIN caused a stir when he apparently exposed himself: he is said to use fake balance for his sessions as part of advertising deals with casinos.
Tip: Creativity pays off here! Reward systems, bonus promotions and loyalty programs attract new players and retain existing ones.
Cost point: Depending on the scope and target group focus, 50,000 to 300,000 euros can quickly be incurred.
These long-term costs are incurred by casino operators
Unfortunately, operating an online casino does not end with the initial costs. A successful business requires ongoing investment at various levels. It takes more than a shiny website and lots of games to keep the business running!
- Technology and hosting: The platform and the website or the corresponding backend form the heart of every online casino. In order to keep this technological basis stable and secure, regular costs are incurred for hosting, updates and maintenance. Operators can expect to spend between 10,000 and 30,000 euros a year on this. Investments in new technologies to remain competitive can amount to an additional 20,000 to 50,000 euros per year.
- Creative customer loyalty: Players want to be entertained - and that doesn't end with the games on offer! Bonuses, loyalty programs and exciting promotions are key to retaining customers in the long term. Bonus offers can have a powerful effect. Such measures cost between 5,000 and 25,000 euros per campaign, depending on their scope and creativity. We recently asked ourselves whether BingBong's innovative Slot Academy is legal.
- Marketing - the show must go on: Visibility is everything! Social media campaigns, paid advertisements, TV commercials or sponsorship - all of these must be maintained and expanded in the long term after the launch. While smaller social media measures cost between €2,000 and €10,000 per month, TV advertising or sponsorship deals can quickly cost €100,000 or more per year. An in-house marketing team (once the casino is established) can cost between €100,000 and €300,000 per year.
- Employees and support: Even a digital casino is not a one-man show. It needs people behind the scenes. A competent support team for players, professional accounting and other standards are must-haves. Depending on the size of the platform, this can cost between 50,000 and 200,000 euros per year. An experienced casino manager or additional in-house staff for technology, marketing etc. can cost a further 100,000 to 200,000 euros per year.
- Transaction and license fees: Payment service providers such as PayPal or paysafecard charge transaction fees, which often relate to certain percentages per payment. Ongoing license costs must also be calculated. With all this, you should expect to pay between 10,000 and 50,000 euros per year and more.
- Expanding the range: If you stand still, you lose. In order to expand your own online casino or create and implement new functions, you need to invest continuously. The costs here quickly amount to around 10,000 to 100,000 euros per year, depending on the scope of the innovations.
- Other business costs: Like any other business, online casinos also have typical operating costs. Taxes, insurance and general expenses can add up to 50,000 to 150,000 euros a year or more.
Conclusion
Starting your own online casino is an ambitious undertaking that requires extensive planning, a lot of know-how and ultimately considerable investment. The costs for the start - from the platform and license to marketing and legal protection - quickly add up to several hundred thousand euros. Added to this are annual operating costs, which can be in the six-figure range depending on the size of the project.
Even if the market is promising, it takes time for the investment to pay off - usually several years. A successful start depends largely on your own prerequisites: Without experience in the sector and without sufficient capital, the road ahead is rocky. However, if you have sound knowledge, a strong team and sufficient financial resources, you have a good chance of establishing yourself in the long term and benefiting from the growth of the market.
In short: starting your own online casino is possible, but certainly not a project for everyone.
Source of the image: https://pixabay.com/illustrations/tree-business-plan-growth-grow-2987962/
Central text sources: https://de.statista.com/outlook/dmo/eservices/online-gambling/online-casinos/deutschland?utm_source=chatgpt.com, https://rechtmeyer.de/dienstleistungen/konzessionserteilung/
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