How Much Does It Cost to Open a Casino?

How Much Does It Cost to Open a Casino?

In current economic realias, the gambling industry is one of the most profitable and promising business directions. This fact encourages entrepreneurs from all over the world to open gambling facilities in different countries.

How much does it cost to organize a gambling business? What stages will primarily need investments? Read in the article below.

What nuances to factor in when you open a casino?

How Much Does It Cost to Open a Casino?

Setting up a casino is not a simple task, which requires a great contribution of efforts and big investments. Before you get down to establishing a new gambling platform, it is important to decide on what market and in what format you are planning to work.

Some countries regulate the gambling business at the legislative level, and some countries ban it. If you intend to run a legal business, tap into the markets where gambling is legal.

As for the format, casinos fall into online and land-based. Some business owners develop both segments at the same time: open land-based facilities and launch their analogues on the Internet. Here you should take into account the peculiarities of the local legislation and your possibilities.

According to approximate estimates of Slotegrator, which supplies online casino software solutions, expenses on the launch of an online gambling platform divide into:

  • 3-7% – registration of the new company;

  • 10-30% – licensing;

  • 25-35% – purchase of software;

  • 10-20% – selection of personnel;

  • 5-15% – additional expenses.

In the case of a land-based casino, the percentage proportion is different. According to estimates of different experts, the development of the land-based gambling business costs much more than online.

Expenses for opening a casino

The opening of a gambling business consists of many stages starting from building a business plan to the purchase of hardware and formation of the team. Let us review the main stages.

License acquisition

Legal operation of a casino is possible only if you have a corresponding license. Depending on the jurisdiction, the price of this document may vary from zero to several hundreds of thousands of dollars.

For example, a gambling permit costs €20 000-25 000 in Curacao, up to €180 000 in Australia, €427 000 in Latvia.

In Ukraine, it is forbidden to organize gambling activity today (except lotteries). However, the draft law about the gambling business legalization, which has been already sent to the Verkhovna Rada for consideration, offers to set up an annual payment for the land-based casino license equal to up to 9000 minimal salaries. The sum differs depending on the region.

When you form the budget of the gambling company, it is also important to include funds intended for the annual renewal of the license.

Purchase or rent of premises

This paragraph primarily relates to entrepreneurs that want to open a land-based casino. The success and profitability of a gambling facility depend on the premises and its location, among other things. It is essential that the premises is located in an easily approachable area. Besides, it is necessary to create comfortable conditions for players. For example, players will prefer a spacious casino with a good-looking exterior to a hard to notice club functioning on the ground floor.

The cost of rent depends on location and many other factors, for example, the availability of communications, etc. It can range from several hundred to several tens of thousands of dollars for one square meter.

Owners of online casinos will need land-based premises if they want to manage the business from the office.

Website development

While you primarily need to take care of the premises to open an offline business, it is important to build a website for an online casino. The quality of the online platform will influence its popularity among users.

The price of website development depends on the number of available functions and the degree of complexity of its structure. The cost can range from several hundred to several thousand dollars.

Purchase of gambling software

The next important stage of opening an online casino is the purchase of gambling software. It has to meet the following criteria:

  • legality – give preference to software developers and providers that offer licensed and certified games;

  • quality graphics and sound;

  • user-friendly interface;

  • new software solutions – opt for the latest software version and the possibility of further updates;

  • adaptability to mobile devices.

The purchase of software from market leaders will cost you $10 000-15 000 or more.

Purchase of gambling hardware and other equipment

Land-based casinos have to buy or rent slot machines, play tables for card games, terminals for accepting bets. A new slot machine produced by a global manufacturer can cost around $100 000. Previously used slot machines will cost cheaper. Minimal prices for poker, roulette, blackjack tables can start at several hundred dollars.

Besides, to organize a business in the offline segment, you will need computers, printers, TV-sets, and many other things. The full list of required equipment and hardware depends on the needs and possibilities of the entrepreneur.

Selection of personnel

To make the land-based casino popular among players, you need to form a team of qualified specialists that will not only ensure the operation of the casino but will also promote it.

The team of a land-based casino should include administrators, dealers, marketing specialists, lawyers, advertising and PR specialists, experts in finances, managers, security guards, technical workers, and many others.

The team of an online casino usually consists of fewer people including IT, marketing specialists, lawyers, bookkeepers, SEO experts, financiers, etc.

It is difficult to assess objectively how much a businessperson may have to spend on personnel maintenance. In this issue, everything depends on the economic situation in the country, the qualification level of workers, and the generosity of the business owner.

Additional expenses

The graph of additional expenses may include many items: conduct of maintenance and repair works, purchase of stationery products, transportation costs, services of translators (in the case you decide to enter the foreign market), and many other things.

Conclusion

The launch of a casino costs a lot. However, experts advise not to save funds on the opening and development of the business, as the competition is tough in the gambling market, and only those companies that offer high-quality service become successful. Newcomers are recommended to plan their budget for a year ahead and orient toward the increase of possible expenses.

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