Thinking about starting your own online casino? Sounds exciting, right? Trust me, it is. Launching your own gaming site can be a wild yet super rewarding journey.
But hold up, before you jump in all guns blazing, you need to know one thing: it’s not just about slapping a website together. There are real costs involved, and you’ll want to be ready for them.
A report by Coherent Market Insights says the online casino market is expected to grow by about 11.5% every year for the next seven years. That’s huge!
But, and it’s a big but, setting one up isn’t exactly cheap. In this article, we’ll break down what you really need to know: how much it’ll cost to get your license, build your website, set up your software and games, develop payment systems, run your ads, and all the other important stuff you’ll have to budget for.
Here’s how much it costs to start your own iGaming business.
1. Registering Your Business
Before you can launch your online casino, you need to set up a legitimate company, no way around it. Without a registered legal entity, you won’t be able to open the right kind of bank account, apply for a gaming license, or sign deals with software and payment providers.
Now, it’s usually best to register your company in the same country where you’re getting your casino license. Many jurisdictions actually require this. If you go with an offshore location, that can sometimes mean lower taxes too (bonus!).
How Much Does This Cost?
There’s a table below showing the basic government fees for setting up your company. But fair warning, that’s just the starting point. You’ll likely need to hire a local lawyer to help prepare and file all the paperwork, which usually adds another $500 to $1,000.
And don’t forget: there could be extra costs like application fees, trademark registration, renting an office, buying equipment, or even hiring local staff, depending on where you set up shop.
2. Buying the Right Software
Now let’s talk about software, this is the engine that powers your entire online casino. Without solid, reliable software, your business is going nowhere fast. It controls everything from how your site runs to how players interact with games and make payments. Plus, your platform has to look sleek and professional, trust plays a huge role in getting people to actually play (and stay).
There are three main types of software you’ll need:
Game Platform
This is your core system, it handles account management, user settings, backend controls… Basically, it’s the brain of your operation.
Prices vary a lot, anywhere from $10,000 to $500,000, plus an ongoing commission (15% to 60%) on your revenue.
Popular providers include White Label Gaming, Playtech, Microgaming, and Cryptologic.
Game Content
These are your actual games: slots, table games, lotteries, all the fun stuff your players come for. Some platforms bundle games with the main software, but you can also buy them separately.
Prices range from $200 to $5,000 per game, plus a cut of your profits. It’s cheaper and easier to buy games in bulk from providers.
Top names here: Playson, NetEnt, Evolution Gaming, Microgaming, and BetSoft.
Payment Solutions
These tools handle all the money stuff, such as deposits, withdrawals, and transactions between your players and your platform.
You’ll want to offer plenty of options so players can use what they’re familiar with.
It’ll cost you around $20,000 per month per payment gateway.
Big-name providers include PayPal, Skrill, Neteller, Visa, MasterCard, and Click2Pay.
3. Paying for Your Casino License
You can’t legally run an online casino without a gambling license, simple as that. This license allows you to host your casino’s servers in a country where online gambling is legal. And no, you can’t just pick any country, some don’t allow online gambling at all, and others require a separate local license.
Where Can You Get a License?
There are a few popular countries where online gambling is allowed and regulated, places like Malta, Curacao, Isle of Man, Kahnawake (Canada), Gibraltar, and Antigua & Barbuda.
Each of these places has different rules, prices, and types of licenses. For example, Malta offers 6 different classes of licenses depending on what kind of gambling you want to offer:
- Class 1 – Games of chance like online slots, roulette, and lottery.
- Class 2 – Sports betting, fantasy sports, esports, etc.
- Class 3 – Affiliate marketing and promoting other gambling brands.
- Class 4 – Hosting and running gambling platforms for others.
- Class 1 on 4 / Class 3 on 4 – Managing or promoting casinos on someone else’s platform.
The license you need depends on your business model, and the class also affects how much you’ll pay in fees and taxes
So, How Much Does it Cost?
Here’s a rough idea of what you’re looking at:
- Offshore licenses (like Curacao or Kahnawake): around $100K to $300K
- EU licenses (like Malta or Isle of Man): around $300K to $1M
And that’s just the license. You’ll likely have extra fees too, for example:
- $15,000 CAD in Kahnawake for technical testing.
- $15,000 + $100,000/year in Antigua & Barbuda for document checks and ongoing regulatory fees.
If You Want to Save on Licensing Costs…
If those prices are blowing your budget, don’t panic, there are other options:
- Use your software provider’s license (like a franchise):
This lets you operate legally under their license. Costs range from $30K to $300K, and they handle most of the tech work, you just focus on marketing and operations. - Get a sublicense:
This is the cheapest way in, starting from as low as $5K (like on the Isle of Man). You basically become a partner or referral under someone else’s license and share profits instead of doing everything yourself.
4. Building Your Website and Mobile App
Alright, you’ve got your license and your software. Now you need a place for players to actually play. That means building a killer website and a smooth mobile app.
This part starts with planning what features you want to include. Sure, you’ll need your casino games and backend tools, but there’s more to it if you want players to stick around and actually trust your platform.
Here are the key features your site and app should have:
Registration and User Accounts
Players need to sign up before they can start spinning slots or placing bets. Make registration easy, through email, phone, Google, Facebook, etc. Also, users should be able to manage their profiles and payment info easily.
Payment System
Players want fast, smooth deposits and withdrawals. Your site needs to support multiple payment options, such as credit cards, e-wallets, crypto, and make the process more flexible. Bonus points if players can set their own cash-out limits for safety and control.
Customer Support
This is non-negotiable: you must have 24/7 support. Whether it’s live chat or email, players need to know someone’s always there to help. Good support builds trust, and trust means more loyal players (and more revenue).
Security
Your players are trusting you with their money and personal info, so don’t mess around. Make sure your site uses SSL encryption and powerful security tools to protect all data and transactions.
Bonuses and Promos
A strong bonus system keeps players coming back. Offer rewards for signing up, depositing money, joining tournaments, or even just returning to play. The more attractive your bonuses, the better your player retention.
Affiliate Program
Early on, most of your players will probably come through referrals, that’s why you need a clear and fair affiliate system. Set up how, when, and how much affiliates get paid. Make it worth their while to bring you new traffic.
Additional Features (nice to have)
If you want to distinguish yourself, add things like:
- Multi-language support
- Live chat between users
- Push notifications
- Ratings & reviews
- VR/AR gaming experiences
- Multi-currency options
These extras can boost player engagement and make your brand more memorable, though yes, they’ll bump up the development cost.
What Will All These Cost?
The cost to build your site and app depends a lot on your approach. Do you:
- Hire a freelance team?
- Use a pre-built template?
- Pay for a fully custom solution?
We’ll touch base on that down next.
5. Marketing and Promotion
Getting the word out about your online casino isn’t cheap. In fact, marketing costs can range anywhere from $20K to $100K a month, and here’s why: Gambling ads are banned on big platforms like Google, YouTube, Facebook, and Instagram. That means you can’t just run a bunch of ads and expect quick results.
Instead, you’ll need to focus on SEO (search engine optimization), basically, creating tons of content that’ll help your casino rank high on Google and other search engines like Yahoo, Bing, Baidu, and Yandex.
The best partners to help promote your site are the ones who already show up at the top of search results for terms like “online casinos” and “best online casinos.” To get these partners to work with you, you’ll need to offer them a good deal, usually 40% to 60% of your revenue. This means most of your marketing budget (up to 80%) will go into paying these affiliates.
How Payments Work:
There are two main ways you’ll pay your affiliate partners:
- CPA (Cost Per Acquisition):
You pay the affiliate a fixed amount (up to $500) for every new player they bring in who registers and deposits money on your site. - Revshare (Revenue Sharing):
You share a percentage of the money the player loses. Typically, this is around 25%, but when you’re just starting out, you might need to offer up to 60% to get those key players onboard.
The remaining 20% of your marketing budget will go toward creating SEO-friendly content, which is super important because it helps your casino show up in searches. But keep in mind, this part is a bit of a long game, and not always super efficient.
Sponsorships
Another way to promote your brand is through sponsorships, like backing sports teams or events. But, be prepared for some huge costs. For example, Chevrolet paid $559 million for a 7-year deal with Manchester United in 2012. Yikes!
You could save a lot of money by sponsoring smaller teams or events, but be warned: you won’t get the same audience reach, so it might not be worth it.
6. Staff Salaries and Ongoing Costs
Running an online casino isn’t a “set it and forget it” kind of business. You’ll need a solid team to keep things running smoothly, make updates, and handle customer issues. At the start, here’s the team you’ll need:
- 1 Designer — to make your site look amazing.
- 2 Web Developers — to build and maintain the website.
- 1 Project Manager/Leader — to keep everything on track.
- 4 Support Agents — to help customers with any issues.
- 1 Anti-Fraud Specialist — to spot any shady behavior (this person can also double as a support manager early on).
- 3 Sales Managers — to bring in new customers.
- 1 Marketing Specialist — to create campaigns and promote your casino.
- 1 Affiliate Manager/Media Buyer — to buy traffic and handle affiliate marketing.
- 1 Payment Systems Specialist — to manage payments and transactions.
- 1 Content Manager/Copywriter — to create all the written content for your site.
- 1 Accountant/Bookkeeper — to handle all the finances and make sure you’re staying on top of taxes.
Besides, some regulators (like the Isle of Man) may require you to have two directors and an official representative.
How Much Does This All Cost?
Here’s a brief look at salaries:
- Western Europe, Japan, the U.S., and Canada: $500K–$600K per year for the team, not including taxes, office rent, or other costs.
- Eastern Europe: $200K–$300K per year.
- Africa, Latin America, and some parts of Asia: $100K–$150K per year.
Server Costs
You’ll also need to set up a dedicated server to host your casino. This will cost anywhere from $5K to $20K. Some countries (like Curacao) require you to place the server in-country, and it has to be connected to local systems for tax and anti-money laundering purposes.
7. Player Payment Reserve
When you operate an online casino, you need to have a reserve fund, basically, a safety net to ensure you can pay out winnings to your players. This money has to be kept in a separate account, and you can’t use it for anything else, like paying your bills, taxes, or staff. It’s just for player payouts.
The amount you need to keep in the reserve is usually set by local laws, and it varies depending on the country. Here are some examples of the minimum required reserves:
- Curacao: 60,000 Dutch Maltese guilders
- Antigua and Barbuda: $100,000
- United Kingdom: At least £175,600
- Belgium: Between €75,000 and €250,000
- Panama: $100,000
This reserve makes sure that if players win big, you’ll be able to pay them out without any issues.
Remember to Also Consider…
Transaction Fees
When money moves around, whether it’s players depositing funds or cashing out, you’ll have to pay transaction fees, usually between 0.1% and 3% of each transfer. So, the more money that moves, the higher the fees.
Representation Costs
This covers things like business meals with potential partners, gifts for officials, airline tickets for you and your team, etc. These costs can vary a lot depending on where you’re located and the legal rules of the country you’re working in.
Office and Server Costs
If you need a physical office space or a place to host your servers, this will depend on where you set up shop. Office and server hosting prices can vary a lot based on your location.