How Much Money is Needed for Starting an Online Casino in Canada?
Starting an online casino in Canada carries the prospect of big bucks. However, there are some relatively high start-up expenses than need to be considered before you open your business.
Setting up an online casino in Canada follows a similar procedure to starting one anywhere else in the world, with the main differentiator being the jurisdiction in which you decide to license your new casino.
Online casinos have become even more popular during the current pandemic, since gamblers were prevented from going to land-based casinos, as a result of the various safety and security restrictions in place.
If you scout around, you will notice that new online casino operators have been mushrooming around Canada for a while. However, opening up a new online casino is not cheap, and the rivalry can be fierce. Here are a few things that you will need to get your business off the ground:
Get Hold of a Gaming License
The most significant expense that you will likely have when starting an online casino is that of a gaming license. A license represents a fundamental part of the setup process, giving you the legal authority to conduct your business online. You will need a permit for two primary reasons:
- High-quality online casino software suppliers will not do business with illegal or unregistered entities. And, without their consent, you won’t be able to make use of their products and services.
- Online gamblers have become savvy over the years and will, in general, veer clear of unregistered websites. A displayed license indicates that the business operation is legitimate, taxes are paid and is a site that gamblers can trust.
Canada has exceptionally stringent gambling laws, so incorporating your online entity offshore is advisable. A well-respected licensing provider is the Malta Gaming Authority, where the cost of a standard license usually varies from between US$15,000 and US$20,000. An authoritative permit will cost a minimum of US$35,000 per annum. You will also be required to pay several fees, charges and taxes, as well as provide financial reporting.
Link Up with Reliable Software Providers
Gaming software is the core of your business, so securing a deal with a trusted provider is crucial. The latest software will keep you competitive in a saturated market. To choose the right software provider, evaluate the following:
- Casino solution – gaming content and software
- Platform – player management and administration system
- Extras – Security features, tech support, and certifications
Select the Games You Wish to Offer
If you wish to offer the best games on the market, choosing a variety of these could end up being quite costly. Although a wide selection of games will enhance your reputation, it comes with a price tag.
Also, offer a variety of game types, incorporating slots, roulette, poker, blackjack and others. Alternatively, you could opt for a boutique-style casino, offering a smaller selection of the similar or same type of games (e.g. poker or slots-only online casino).
Set Up Verifiable Methods of Payment
The most important part of gambling is getting paid. Contemporary online gamblers expect several payment options at their disposal, including bank cards, e-wallets and cryptocurrencies. Ensure that you support many different payment options, quick transacting, and several methods of accepting deposits.
Construct a Website and a Mobile App
Your website is your storefront and is the first thing that a prospective customer will see when he searches for your online casino. While it’s possible to build your own website, we suggest that you seek professional help with this task, since it involves complicated financial tools and payment options integration. Getting a contractor to assist you can cost as little as CA$1,000 but will give you a peace of mind that the job will be done correctly.
Get a Grip of the Game
Like with any other business, you will need to be mindful of overhead expenses such as staff costs, marketing, taxes and contingency reserves. However, the more money you are prepared to invest when starting your online casino in Canada, the more you stand to gain from it. Ultimately, the Canadian players are the ones that will benefit the most from added competition and selection of online casino providers.