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Extendy. How much does it cost to operate an online casino?
When thinking about launching their own online casino, many arbitrageurs consider a white label solution as the best option. With so many platforms on the market to choose from, it’s no wonder that many may feel deterred by all the work involved. Fully-fledged, high-level operations are offered only by a few white label casinos. What’s more, attempting to launch an online casino by one’s self essentially involves building a new business from scratch with all the risks and pitfalls that accompany it.
In this article, we will discuss all that goes into launching and operating an online casino based on one of our experience, the main departments and tasks involved, the number of employees needed at the start, and the costs involved in employing teams of iGaming professionals.
Payment Processing / PSP
Deals with player payment processing – from connecting payment methods to quickly resolving issues with deposits.
While part of the team monitors deposit drops, the other works ‘on the front line’ 24/7. This involves handling all player requests, and financial reconciliation. The Payment Processing department also ensures the necessary number of payment methods and their proper functioning: searching by GEO, signing, testing, integration, routing (switching payment methods), and communicating with payment account managers.
Included in the tasks of the Payment Processing team are helping to avoid signing unreliable payment methods, ensuring quick onboarding and annual payment method verification, quickly resolving deposit issues, and thus avoiding additional chargeback fees.
The department includes monitoring managers, inbound request handlers, business developers, lawyers, account managers, and technical specialists. To set up a PSP team would require at least 5 employees, with the cost of the team starting from €9000 depending on the location.
Payments, Risk & Fraud
Handles KYC, regulates payments, conducts checks when necessary, and identifies and combats fraud. While the team primarily uses automated solutions in their daily tasks, a significant part of the daily work is performed by employees.
Payment verification is carried out in several stages. Identifying fraud sometimes resembles detective work – one needs to study the overall behavior of different groups of players and look for patterns. Fraud is constantly evolving which also means employees in this department will be continuously analyzing, adjusting and tweaking processes to prevent fraudulent clients from returning, and to prevent various risks, including license complaints.
The department’s work affects direct potential losses from fraud, which can be quite substantial. A few months back, thanks to the quick work of the Payment, Risk and Fraud’s team, we were able to promptly identify and prevent a potential case of abuse of funds which could have cost us several hundred thousands of dollars.
When setting up a Payment, Risk and Fraud team, you could expect small volumes of FTDs (First Time Deposits). This means you can start off with a team of 6 employees which would cost around €9000 a month. Training employees and finding employees who are well-experienced in identifying unusual fraudulent schemes can prove to be particularly difficult, so these aspects should be taken into consideration.
CRM
Responsible for tournaments and gamification, this department’s key functions are player retention and upselling. The functionality can vary depending on which CRM system is used: more advanced solutions allow you to set up more flexible chains of actions and bonuses, quickly connect new GEOs, introduce player missions, and much more. However, such systems require more experienced employees to launch and manage activities for different segments of players, including VIPs.
When setting up your online casino, you could be looking at recruiting three CRM managers for one brand, and, depending on the location and the managers’ experience, the cost could begin at around €8000. Once again, it is important to consider the few experienced specialists on the market which could mean the price could be even higher.
Game Management
Responsible for negotiating with game providers and discussing promotions with game studios. The game management department also handles the placement of games on the casino site while taking the GEO into account. For instance, players in different countries will likely prefer different games. Localisation and dedicating proper prioritization to players will help increase casino revenue.
Specialists with a deep understanding of games and the markets might be hard to come by, and the cost of one manager when setting up a brand could start at around €2000 depending on the location.
Content
Responsible for player communication. This includes explaining tournament rules, drafting marketing material about upcoming tournaments and campaigns, drafting notifications, email newsletters, Gamble Addiction & Anti-Money Laundering policies, payout rules, various terms and conditions, and much more.
Discrepancies in the terms and conditions of ongoing tournaments can lead to thousands of support requests and even more serious consequences such as discrepancies in payout limits indications, followed by player complaints and license revocation.
When launching your content department, each language team can consist of 3 content writers who are native speakers of the language they are writing in, with each team costing around €5000 per month.
BI Analytics
One of the most important departments in an online casino, its main aim is to help the business make the right decisions. BI is critical for marketing, VIP management, CRM, antifraud, payments, and much more. The analytics team processes huge amounts of data from various sources, allowing other departments to monitor important metrics, evaluate efficiency, and optimize work.
Building an effective BI Analytics department can take up to a year and costs start from around €300,000 per year. The main expenses are the employees, software, and hardware. We should point out that investing more in the employees, or choosing rather to invest in the software aspect will have an effect on the level of automation but will not significantly impact the final cost.
While “Ready-made solutions” usually provide access to an analytical solution, there still needs to be someone who will manage it. Therefore, an operational team with high expertise is needed. Its size can vary from 5 to 20 employees depending on the tasks and solutions used. On average, the cost of the team’s work, including software and hardware expenses will be around €25,000 euros per month. An analytics team can start out with three employees, and can cost about €14,000 euros per month.
Support
This is the first point of communication for players, and the quality of the department’s work directly affects player retention and loyalty. Properly written player communication scripts, case resolution algorithms, and team training help with this.
Support agents work 24/7 to help solve various problems encountered by players regarding fund deposits and withdrawals, player and payment verification, and account settings. Customer support agents also explain tournament rules, promotions and campaigns, as well as casino features such as bonuses, missions, etc.
An effective customer support team usually includes between 20 to 70 customer support agents, depending on the level of automation and the GEOs involved. As the number of GEOs grows, finding enough employees with the required language skills and suitable experience can be a challenge. When setting up a customer support team, you need to consider starting out with at least 6 people, and the cost of this team would be around €7000.
Call Center
Partially complements support functions in solving new player problems but also performs other important business tasks, such as reactivation. A properly set up call center could mean a return of up to 20% of players.
Another function of call centers is collecting feedback and passing it onto the product team. For example, optimizing bonuses could result in players receiving more attractive rewards and an increase in deposits for the casino.
A call center department can start off with two employees, and can cost around €3000 per month.
VIP Management
Working with VIP players is key in casino operations, ensuring retention of high-paying clients and revenue growth. VIP managers develop a VIP management strategy and set metrics to classify clients as VIPs, such as average bet size, frequency of play, or deposit amount.
The main principle in working with VIPs is to provide a highly personalized service through creating exclusive promotions and bonuses based on the VIP players’ preferences and actions on the site. Unique bonus calendars need to be developed for each product the client plays: casino, sports, live.
The VIP manager should have a good sense of the player, a desire to solve problems, and have a sense of empathy, as well as be able to upsell bonuses, games, and other offers to the client.
The department also handles objections, resolves complex cases, and legal issues together with lawyers and other departments such as Risk & Fraud.
When starting out, a VIP department can consist of two managers, and should cost around €6000.
Conclusion
When launching an online casino, you’ll be looking at a minimum of 30 professionals and a minimum monthly cost of €63,000. This amount is based on CIS countries and only includes the net salaries of department heads and employees, mainly at mid-level. When hiring on the international market or head-hunting the best industry professionals, you could be looking at double the cost per team, and possibly higher.
Extendy is a white label solution that offers turnkey operations without additional costs for partners. We look forward to discussing the possibilities of launching your online casino brand. Reach out to us by filling in an application on the website if you want to discuss the possibility of cooperation and launching your casino brand with us.
Eastern Europe
Soft2Bet Invest Wins the “Outstanding Contribution to Gaming 2024” Award at SiGMA East Europe
Soft2Bet is delighted to announce that its Soft2Bet Invest venture has won the Outstanding Contribution to Gaming 2024 award at this year’s SiGMA East Europe taking place this week in Budapest, Hungary.
The award celebrates executives and organisations that make significant impacts on the industry through technical innovation, advocacy or mentoring and investments. Winning the “Outstanding Contribution to Gaming 2024” award for this category is therefore fantastic recognition of Sof2Bet’s work and efforts in the field.
Soft2Bet Invest launched a €50m iGaming Innovation Fund to support innovative iGaming and casual gaming companies and provide financial and business support to entrepreneurs. It reaches across the corporate spectrum and is open to growth-stage and/or mature companies that are harnessing pioneering technologies in casual gaming, AI, traffic differentiators or behavioural-UX analytics.
Launched in 2024, Soft2Bet Invest has already attracted major interest from iGaming startups and visionaries wanting to innovate and revolutionise the sector. Its investment bracket ranges from €500K to €1m per individual project, with the investment strategy to be discussed on a case-by-case basis.
Martin Collins, Chief Business Development Officer at Soft2Bet, commented: “Winning this award is highly rewarding since we launched Soft2Bet Invest just this year. It shows the hunger there is among our industry peers for a specialist investment fund that can harness the energy within iGaming and turn entrepreneurial dreams into realities. Soft2Bet’s focus has always been innovation, of spirit, business and technology, and this award recognises those qualities. We’re truly delighted to have won it!”
Africa
Tusk Casino Celebrates Trace’s R2.3 Million Jackpot Victory
Tusk Casino proudly announces another thrilling win for one of its players, Trace, who secured an impressive R2.3 Million on the Secrets of Cleopatra slot, crafted by PG Soft. This notable win is proof of the exciting potential of Tusk Casino, supported by www.SouthAfricanCasinos.co.za, the leading online gambling guide for South African players.
Trace’s Winning Moment at Tusk Casino
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SouthAfricanCasinos.co.za: Gateway to Winning Opportunities
As a premier guide for mobile casinos enthusiasts, SouthAfricanCasinos.co.za has earned the trust of countless players. Trace, after his significant win, commented, “Coming across Tusk Casino thanks to SouthAfricanCasinos.co.za was a turning point.” His experience mirrors that of many others who have benefited from the platform’s professional advice and well-researched recommendations.
About Tusk Casino
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A Bright Future for Online Gambling in South Africa
Thanks to the support from SouthAfricanCasinos.co.za, Tusk Casino reaffirms its position as a leading venue for safe and exciting online gaming. This partnership provides players with the most up-to-date information and prime gambling opportunities, ensuring a secure and enjoyable experience for all participants.
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Trace’s impressive win at Tusk Casino not only transforms his life but also underscores the exciting possibilities available through SouthAfricanCasinos.co.za and Tusk Casino, marking a significant moment in the South African online gambling landscape.
Latest News
Atlaslive Celebrates Multiple Nominations for EIGE 2024, Including Best Marketing Campaign
Atlaslive, a B2B software provider delivering high-quality solutions for the iGaming industry, has been shortlisted in all four of its nominated categories for the upcoming European iGaming Excellence (EIGE) Awards 2024. This recognition underscores Atlaslive’s commitment to innovation, excellence, and leadership in the iGaming industry.
The nominations include:
- Best Marketing Campaign: Our rebranding campaign has been recognized for its strategic approach and impact, reflecting Atlaslive’s dynamic evolution and our continuous efforts to connect more deeply with our partners.
- Best eSports Betting Provider: This nomination highlights our cutting-edge eSports offerings, which are designed to meet the growing demand for immersive and reliable eSports betting experiences.
- Innovation in iGaming Technology: At Atlaslive, we thrive on challenges and excel in high-pressure, high-traffic moments. Our peak performance technology, which ensures seamless operations even during the most demanding periods, has earned us a spot in this category.
- Best iGaming Supplier: Being recognized as one of the leading suppliers in the iGaming industry is a testament to our comprehensive and scalable solutions, which continue to set new standards for reliability and excellence.
The final vote for the EIGE 2024 Awards will take place during the European Gaming Congress, held on October 15-16, 2024, in Warsaw. Atlaslive is proud to attend as an industry leader, contributing its expertise in two key panel discussions:
- The Future of Esports: Opportunities and Challenges – October 15
- Optimizing Sportsbook Operations for Enhanced Performance – October 16
Atlaslive’s CEO, Maxim Slobodyanyuk, commented, “Our success is built on a foundation of relentless innovation and a deep understanding of the iGaming landscape. Every solution we develop is designed with our partners’ growth and success in mind, ensuring they have the tools they need to thrive in a competitive market. These nominations validate our strategic direction and the trust our partners place in us. We’re not just reacting to industry trends; we’re actively shaping the future of iGaming. By staying ahead of technological advancements and continuously refining our offerings, we aim to lead the industry in delivering exceptional value. Our vision is clear: to be the go-to partner for businesses seeking not only cutting-edge technology but also a collaborative and forward-thinking approach to long-term success.”
Join Atlaslive as the company shares insights and shapes the future of iGaming.
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