As cryptocurrency’s popularity grows, more and more people are becoming interested in cryptocurrency gambling. As a result, there is an increasing need for platforms that enable users to bet on various events using their preferred cryptocurrency. So, how hard is it to start a crypto casino?
Opening a crypto casino includes a few steps, which we shall discuss in detail along the way. They include:
Analyze the marketDraft a planPrepare all documentsGet a licenseSelect software and website designChoose gamesHire staffAttract players – marketing your crypto casino
This guide will share our experience in crypto site development and outline the processes required to start a crypto casino. But, before we get into the specifics, let’s first go through the basics of cryptocurrency gaming.
What Is an Online Crypto Casino?
Before you can learn how to set up a crypto casino, you must first understand it and how it operates. Understanding the basics will assist you in developing all of the required business ecosystems for casino growth.
Generally, a cryptocurrency gambling platform is an online blockchain-based gaming site that allows users to deposit, gamble and withdraw funds using cryptocurrencies. Some also accept conventional payment methods for fiat money transactions.
Using smart contracts to bet while playing games and processing payments is another distinctive characteristic of crypto casinos. This automates and ensures the process’s reliability.
There are three types of gaming sites that support cryptocurrencies:
Bitcoin is one of the several cryptocurrencies that you will undoubtedly come across online. It is not only the most popular but also the oldest cryptocurrency. The Bitcoin system operates on a well-known peer-to-peer system, with all transactions and Bitcoin production carried out collectively by the Bitcoin user network.
Bitcoin is not owned or controlled by anybody. This implies that a centralized bank or government does not monitor Bitcoin. The blockchain system has also been designed to enable everyone on the blockchain to witness all transactions while protecting the identities of those dealing.
Even though Bitcoin is not officially recognized as a currency in many parts of the world, its popularity has skyrocketed considerably in recent years. It had remained under 1500$ for more than 5 years after its debut, but between 2017 and 2022, it witnessed massive growth and surpassed $20,000 in value.
Why Are Players Flocking to Crypto Casinos?
Game Varieties on BC.Game Crypto Casino
Crypto casinos are new online casinos that accept cryptocurrencies for deposits and withdrawals. This implies that gamers can use Bitcoin, Litecoin, Ethereum, and other popular cryptocurrencies to deposit and withdraw funds.
Cryptocurrencies are becoming increasingly popular, and Bitcoin casinos are capitalizing on this by providing players various benefits that regular online casinos cannot match.
Some of the primary advantages of playing at a cryptocurrency platform include:
Anonymity – One appealing aspect of cryptocurrencies is their anonymity. Many players value this feature since they do not want their personal information shared with casinos. Because crypto casinos do not demand this information, they can play without worrying about privacy.Transparency – Many customers do not trust fiat-based online casinos. Most believe that the gambling infrastructure is designed to limit their chances of winning and take their money unfairly. Blockchain allows you to view the history of all activities and features crypto-powered open-source algorithms that ensure any random number generator (RNG) scam or trickery is detected.Fast and simple transactions – Because cryptocurrency transactions are so quick, withdrawals are often handled within minutes, allowing players to get their winnings as soon as possible.No transaction fee – Another advantage of adopting cryptocurrency is that there are no transaction fees. In most cases, you can deposit and withdraw funds without fear of paying exorbitant transaction fees.Game variety – Unlike typical online casinos, crypto casinos have a significantly broader selection of games. There are live dealer games, Bitcoin slots, and table games. Similarly, some platforms have a wide range of specialized games you won’t find anywhere else.Bonuses and promotions – Crypto casinos provide players with attractive bonuses and promotions. Deposit bonuses, loyalty incentives, and welcome bonuses are all examples. Also, playing at a Bitcoin casino can net you free spins, cash prizes, and even exotic vacations.
What to Consider Before Launching a Crypto Casino
There are various factors to consider before opening a crypto casino, the most important of which is the type of ownership.
Here are some considerations to make:
Starting From the Ground Up
The first choice is to go it alone. You must either finish all of the requirements yourself or pay a specialist to do so. It involves developing a feasible business strategy, getting a license, registering all statutory papers with the regulatory authorities, and setting up a website. Then purchase the necessary crypto casino software, contact the suppliers, pick the slot machines, and promote the casino. The downside of this approach is that the procedure may be time-consuming and costly.
Purchase a Crypto Casino for Sale
Quantum Gaming White Label Solution
When buying a White Label Bitcoin gambling platform for sale, you are technically purchasing a fully operational institution with no identification. You can then brand it with your graphic material. It is highly advantageous if the software vendor is trustworthy. You also get a package that includes all the essential infrastructure, such as licenses, games, payment solutions, etc.
Purchasing a Pre-Configured/Turnkey Casino Website
This is your best bet if you want to open a casino rapidly. You pay for a finished product that includes the games, the website, and all legal documentation.
That said, for those who are still new in the industry and would be interested in clearly understanding the entire process of setting up a crypto casino, we will focus mainly on starting a crypto casino from scratch.
Starting a Crypto Casino From Scratch
Now that we understand the basics let’s get into the real business of starting a cryptocurrency casino.
Here’s what you need to do:
Examine the Market
Before anything else, research your target audience and the niche in which you intend to start your crypto casino business. It will also aid in studying the operations of rival online casinos, determining their benefits and drawbacks so that you consider them while building your Bitcoin casino.
Create a Business Strategy
Every new firm needs a good business plan to support its early phases of development. There are many valuable templates to help you write a business plan. Still, it may make sense to look at examples provided by other established businesses to get an idea of what goals you should set, what dangers you might encounter, and what type of ethos should drive your efforts in the future.
Complete All the Necessary Documentation
Online gambling requires a license. Consider getting a license for your crypto casino. You can obtain a permit in offshore (relaxed rules and requirements) nations or European Union countries (strict rules and many requirements).
An online casino must also be registered as a legal organization. Some developers provide software rental in addition to the essential document packages (the so-called white label plan), which influences the entire cost of services.
Obtain a License
Curacao eGaming Licensing Platform
It is recommended that you obtain the necessary authorization from regional regulators related to the crypto casino business in that jurisdiction.
The Gambling Commission in the United Kingdom issues licenses for various casinos, ranging from land-based to internet betting sites. Different regulations will apply in other regions of the world, and you may choose your territorial base of operation depending on the desirability of the rules governing web-based casinos.
RNG (Random Number Generator) certification is also essential for a reputable cryptocurrency casino. Players must be certain that all hands dealt and spins are random. It will not help your casino’s growth and development if players discover that the spins on games are not truly random. So, keep an eye out for the RNG certification by iTech Labs. Others that savvy gamblers lookout for nowadays include TST and eCOGRA certifications.
Select Software and Website Design
Web Interface of BitStarz Crypto Casino
A well-designed site is the most crucial factor in attracting and maintaining clients. It indicates superior visual information on your landing pages and considerably increases brand value. The design must be of high quality, appealing, and distinguishable from other platforms of a similar kind.
Do not overdo different graphical components since this will turn off visitors and overburden the system’s work. It is also necessary to take care of the front-end connectivity with your database and add or enhance current navigation functionality, as its layout is crucial to the speed of your website.
Solid casino software should include an attractive, user-friendly front-end and a robust back-end that allows you to collect valuable statistics about how players utilize the service. The software platform must also handle blockchain technology and transactions when developing a Bitcoin casino.
Other issues that you should consider when choosing a Bitcoin casino software for online crypto casinos include:
An easy-to-use and straightforward user interface (with the possibility to customize the configuration)A diverse selection of games (roulette, slot machines, video poker, and so on)The opportunity to examine your performance history and ratingA bonus system for new and returning gamersAn engaging but practical design that does not detract from the gameThe capacity to connect to social networks
And, of course, if we’re talking about Bitcoin casinos, players should have access to all of the perks of Bitcoins in online casinos, such as transaction speed, anonymity, and security. To enjoy the gaming experience to the fullest at any time, a crypto casino must also be accessible.
Enter into agreements with reliable hosting service and payment system providers for a great end-user experience. Look into this problem as soon as possible while addressing legal hurdles to minimize delays once everything is up and running.
mBit Casino Games
The online casino business is remarkably diversified regarding the gaming options available. This means you can choose to concentrate on a specific kind of game or provide a diverse selection that can compete with and outperform other traditional online casinos regarding diversity.
You can decide that your brand will focus on providing players with the most up-to-date online slots. Starting with something particular like this might benefit young but ambitious enterprises. Alternatively, you might focus on providing casino table games such as blackjack and poker, or you could branch out into areas such as bingo and roulette.
Alternatively, you might focus on providing table games such as blackjack or poker, or you could branch out into areas such as bingo and roulette. Similarly, creating an all-encompassing gambling platform that incorporates all of these games, sports betting, and other services might be a great idea if you have the resources to do so.
Even with the most outstanding software, and a unique crypto casino idea, you can expect some glitches once your firm is up and running. This is where dependable employees on board to assist customers and deal with behind-the-scenes infrastructure concerns become critical.
Specialists will also be required to advertise your nascent Bitcoin casino, so do not overlook the need to have a skilled marketing staff on hand. Your gaming company won’t find it hard to grow with hard work and the ideal people on board.
Attract Players – Marketing Your Crypto Casino
Now that you have all the groundwork, it is time to market your crypto casino. A good strategy will play a significant role in determining if your efforts will pay off.
Here are some handy tips:
Know The Geographical Locations to Target
In jurisdictions where gambling is prohibited, Bitcoin casinos have become some of the most visited Bitcoin-related websites, providing a haven for gamers who could not previously enjoy online gambling. For instance, players from the United States, Canada, and Asia found enjoyment in crypto casinos. And these countries represent only a few potential markets for all casino owners. Keep this in mind when deciding where to target your marketing campaigns.
Draw Attention to Your Casino7Bit Casino Promotions and Offers
Persuade new players to make a deposit when they visit your platform for the first time. This can be done by displaying large banners with deposit bonus codes. Having high bonus payments and making new visitors aware that other players have won big at your casino can be a game changer. One method is to include a podium with the top winners on your online casino site.
Rewarding players on Bitcoin-related forums with bonus free spins or free chips will undoubtedly draw new gamers who may simply want to try out your offers.
Reputation is essential in a small business environment whereby there’s fierce competition. When opting to make a deposit, players will feel more secure if they see a conspicuous “provably fair” banner or a certificate attesting to the fairness of your online gambling casino.
Adverts on cryptocurrency websites should not be overlooked. However, the expenses for such marketing methods are somewhat more than the norm. Newsletters should notify current players about new games and provide new bonuses and features to them.
You can use press releases to tell everyone about your promotions and who has just won the jackpot!
Creating a Facebook page that is updated daily, making bonus codes available on Twitter, and posting videos of players who have won your jackpots on YouTube are popular strategies for advertising any online business. You can go a notch higher by offering a bonus to whoever wins the jackpot. Also, organizing tournament events for players to participate should keep your community happy and motivated to gamble.
Offers on Mirax Crypto Casino
Offering fresh material is also vital for providing new forms of engagement to users of gambling sites. This can be accomplished by providing them with free chips and additional free spins. The latest offers can be categorized into loyalty levels, daily login bonuses, new games, and VIP programs. New content will always entice existing users who may just want to test out the new visuals. Consider this a vital factor for keeping your Cryptocurrency casino ranking high.
Obtaining a Crypto Casino License
As mentioned earlier, obtaining a casino/gambling license is one of the most critical stages in entering the online casino sector. Licensing is particularly important if you want to earn the trust of your players and prevent any legal issues.
The easiest way to do this is to contact an online gaming lawyer in your jurisdiction, so you can get advice from someone familiar with all the legal issues of acquiring an online gaming license. Many governments worldwide have enacted rules concerning internet gambling, and many only permit online casinos that operate under a local gaming license.
Curacao eGaming Logo
Another option would be to establish an offshore business in a country such as Cyprus, Costa Rica, Malta, or Panama and receive a gaming license there. Because of the low fees associated with the process in these regions, they are popularly referred to as the ‘backbone of casino operations’. Annual licensing fees can be as little as 20,000 EUR.
Meeting specific standards of good character, integrity, and disclosing financial and organizational information are some requirements you might be required to meet. Others include information about its owners and associated persons and providing criminal and employment records of some people within the organization.
The regulations and standards that must be completed to receive a license to run a gambling company in the U.K. are analogous to those required by financial organizations such as banks and insurance firms. These strict conditions aim to dissuade applicants who may be involved in organized criminal organizations or lack the financial stability to operate a gambling establishment properly.
Nonetheless, many gambling control boards have begun allowing multijurisdictional applications to simplify and streamline the registration procedure for enterprises conducting business across multiple state boundaries.
Before Applying for a Casino License:
Getting a casino license may be time-consuming, and awareness of the legal issues can substantially reduce the time between applying for and receiving your online crypto casino license.
Learn about the gaming jurisdiction, including the requirements, gambling license prices, taxes, and application timeLearn how to establish a locally registered corporation that will enable you to run an online crypto casinoBe prepared to submit any needed personal papers, such as a bank reference letter, a certificate of no criminal record, passport copies, and other paperwork that may already be mentioned on the gaming commission’s websiteDetermine if your online gambling supplier has games and software that meet the jurisdiction’s local criteria, such as RNG, software functionality, etcetera
Companies like Fast Offshore, Slogold, and Capstone Group can help you get a license and register a betting firm. They may provide low-cost options for obtaining licensing in offshore jurisdictions and undertake essential research and other legal compliance work that a jurisdictional gaming regulatory board needs.
The following jurisdictions are appropriate for cryptocurrency gambling:
Misses of Crypto Casinos
The rising popularity of cryptocurrency does not imply that it is without drawbacks. The following are some of the most notable ones:
The volatility of cryptocurrencies – The digital currency industry is evolving rapidly, making it impossible to forecast its growth or fall. As a result, there is a chance of receiving a low real profit or none.Industry insecurity in the digital currency market – Any legal framework does not govern the cryptocurrency market. As a result, persons who utilize cryptocurrencies are vulnerable to unanticipated events.Exposure to cybersecurity threats – Yes, cryptocurrencies protect data and money during transactions. However, this does not imply that the servers used to run online casinos are immune to hacker assaults.
Despite the risks, a cryptocurrency casino can be a rewarding investment.
The Legality of Bitcoin Casinos
There are a few key points to consider while determining the legality of a Bitcoin casino:
There are no particular regulations stating that providing players with the opportunity to gamble using cryptocurrencies needs a license or that this sort of business is prohibited in most countriesThere are no specific laws recognizing Bitcoin as having real money worthIf the players deposit only cryptocurrencies, gamble using cryptocurrencies, and withdraw cryptocurrency, your enterprise will not be transacting real money or Fiat. As such, a gambling license will not be necessaryAll Bitcoin transactions In a Bitcoin casino are confidential, and how you acquired them cannot be tracked. It is almost impossible for someone else to trace how you got your Bitcoins or used themPlayers are also protected if they reside in a nation where gambling is unlawful and use Bitcoins for gaming. For example, online real money gambling is prohibited in most states in the U.S, but Bitcoin gambling is unregulated (no laws mention that it is either legal or illegal)
So, do you require a gaming license to operate a Bitcoin casino? The answer is No. Because all of your casino transactions take place on the blockchain and the money does not enter any bank account (and hence does not enter the area of any legal authority), you will not require a gambling license.
Nonetheless, we advise all of our readers to start a Bitcoin gambling website with or without a license. However, if their business will thrive, they should obtain an offshore gambling license and declare their income there when exchanging cryptocurrency for real money and depositing funds into bank accounts from their online casino.
How Much Does It Cost to Open a Crypto Casino?
Cost of Starting a Crypto Casino
To start an online Bitcoin casino, you need between $300,000 and $2,000,000. That should cover the cost of website development, marketing, and licensing. You will also need to cover the casino’s running expenses, including taxes, employee salaries, and operational fees.
Here’s a breakdown of the costs associated with starting a crypto casino:
The Gambling Commission in the United Kingdom imposes a £10,000 application fee and a £25,000 licensing cost for anyone who wants to start an online casino or open an online gambling business. In Malta, the Malta Gaming Authority charges a €2,330 application cost and an €8,500 licensing fee.
Website Development Costs
The website development cost of an online casino is determined by the complexity and size of the website. A simple website with a few pages and no sophisticated features can go for as low as $3,000. A more elaborate website of an online casino with several features, like a live dealer casino, can cost up to $10,000.
Software Platforms Cost
Your online casino is powered by software, which enables you to provide games, handle payments, and handle user accounts.
Turnkey and white-label solutions are the two primary kinds of online casino software developers. Turnkey packages contain everything you need to operate your casino, from the games to payment processing to the website. White label solutions, on the other hand, only give you the basic framework and allow you to design the rest.
Keep in mind that turnkey solutions are often more costly than white-label solutions.
According to Merehead, a business that designs blockchain-based software, the following are some of the expenses associated with various kinds of software platforms:
Gaming Platform: $10,000 – $500,000Payment Gateway: Up to $20,000 per monthGame Content: $200 – $5,000 per game
According to Glassdoor, the average salary for an online casino employee is $35,100 per year. The compensation can rise to around $62,500 annually if you pay additional commissions and bonuses.
So, if you hire 20 people, expect to pay wages ranging from $700,000 to $1,250,000 yearly. Remember, this is a good number compared to the number of clients you’ll have. If your casino expands, you might be required to recruit hundreds or even thousands of personnel.
In general, launching an online gambling crypto casino is prohibitively expensive. You are unlikely to break even in your first year. Nonetheless, this should change over time as your business grows.
Crypto gambling sites are thriving, and there are good reasons for that. Many players want to play online casino games without paying payment processing or currency conversion fees. By using cryptocurrencies like Bitcoin, Ethereum, and Litecoin, gamers can save on banking transaction fees, enjoy faster withdrawals, stay anonymous, and still access exciting casino titles.
That’s why it is not surprising that the gaming industry has welcomed cryptos in a big way. If you want a piece of this lucrative cake, now is the time to invest in a crypto casino. Although there are aspects to take care of, once you do, profits are virtually assured in the gambling Industry.
Frequently Asked Questions
Are Bitcoin/Online Gambling Casinos Profitable?
Any online gambling business can create massive returns with the appropriate techniques. Bitcoin’s value surpassed record-breaking levels, prompting crypto casino players to move quickly.
Is It Legal to Start a Crypto Casino?
Unlike typical online gaming services, there are no legally declared requirements for launching an online crypto casino. The regulations are only bound to the areas where the casino will be launched or base its operations.
Do You Need a License for Crypto Casino?
If the nation where the online gambling casino will operate has cryptocurrency restrictions, you may need a gaming license; if not, none is necessary.
How Do Bitcoin Casinos Work?
These are casinos where gamers use cryptocurrencies to make deposits or withdrawals. In this case, punters use Bitcoins to fund the casino games they intend to play at an online crypto casino of their preference.