How to start an online casino franchise: advantages and important aspects
The gambling industry is growing – analysts from Juniper Research have calculated that the online casino market will reach $1 trillion by 2021. The popularity of the field inspires entrepreneurs to open new gambling sites, but this requires going through many stages. Gambling franchise helps to start a gambling business faster.
Let’s find out what an online casino franchise is and how it helps to build the gambling business.
What is an online casino franchise?
An online casino franchise is an agreement that provides the right to make use of the existing brand of some other company. Thanks to such partnership, an entrepreneur can build a business in short time and start attracting players and making revenue straightaway.
To sign such an agreement, the buyer or franchisee makes a payment and takes the name and the business scheme of the chosen brand.
The seller or franchiser receives two types of payment. A franchise fee is paid only once and includes all seller’s expenditures on the delivery of service. The second payment is called royalty and is paid regularly, according to the franchiser’s terms.
Advantages of a gambling franchise
Starting an online casino franchise is the simplest and fastest way to build your own business. The independent launch of the platform can take more than a year. License acquisition alone takes 6-8 months, and opening a platform basing on a franchise is possible within 2-3 weeks.
It is important to understand that if you start a gambling business on your own, you have to study the market, handle legal issues, select hosting and domain, and choose a software developer. In case you buy a franchise, all these tasks are fulfilled in advance.
Moreover, the franchiser is interested in the success of the buyer. The more franchise companies earn, the higher royalty payments the franchiser receives. The franchiser provides consultations and assistance and offers schemes of increasing player loyalty and casino advertising.
Other advantages are:
realization of profits in short terms;
cutting expenses on brand promotion;
saving of time and money on license acquisition;
lack of competition at the initial stage.
Thanks to the fact that the franchisee receives a readymade operation scheme of the casino, all possible difficulties with affiliate programs, player retention, and setup of advertising are streamlined.
What does a franchise include?
When you buy an online casino franchise, you should check whether it contains the following items:
- a license – the casino should operate legally;
- qualitative software with popular slots, payment systems, analytics tools, affiliate programs, and security systems;
- a website with user-friendly navigation and bright design;
- legal support from the moment of registration to the payment of tax;
- accessible support service of the franchiser;
- recommendations on the promotion.
How to open an online casino with a franchise?
Today many gambling houses offer franchises for online casinos.
Before you start your business with a franchise, learn the company’s history and pay attention to legal aspects, reputation, popularity among players.
Besides, it is important to read feedbacks of partners and other platforms that already cooperate with the chosen casino. Gambling experts also recommend factoring in feedbacks and assessments of players to check whether winnings are paid and make sure that no fraud schemes are used.
If a franchisee chooses the franchise correctly, he or she will have a possibility to open a gambling business without lots of efforts, funds, and time. The online casino will start working and bringing profit straightaway.
Experts will discuss gambling platforms and collaboration opportunities at Minsk iGaming Affiliate Conference.