Latest News
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.
Latest News
Gate.io and AWS’s ‘Gateway to Championships’ Brings Blockchain to the Forefront with FC Internazionale Milano Partnership
The event also brought together industry leaders, sports icons, and blockchain innovators for an evening that not only celebrated technological advancements but also paved the way for a historic and transformative partnership in blockchain and sports.
Panel discussions, moderated by Kristen Lim, Co-Founder and CEO of Rockrose, explored the profound impacts of blockchain technology on the global market. Thought leaders provided insights into the evolving landscape of Web3 and contributed their expertise, highlighting the transformative potential of blockchain across various sectors. Together, they examined key trends, challenges, and opportunities shaping the future of Web3.
VIP Dinner, Networking, and Celebrations
The event concluded with a VIP dinner and networking session, where attendees connected with industry and sports luminaries against the backdrop of a live DJ, creating an atmosphere of celebration and collaboration.
SOCCER2050: From On-Chain to On-Pitch
Additionally, Gate.io organized SOCCER2050, a separate football match highlighting its commitment to the sport and the community. The event was co-hosted with LTP on September 17 in Singapore, where several teams faced off in friendly football matches following a ribbon-cutting ceremony with Dr. Lin Han and representatives from LTP, Huawei Cloud, and Zodia Custody. This event further cemented Gate.io’s presence in the football world, fostering camaraderie and engagement among participants.
Disclaimer
This is a private event for professional knowledge sharing and networking purpose only. You should always seek independent professional advice before making any investment decisions. The products and/or services mentioned herein are only available to persons outside Singapore. Please be noted that Gate Group may restrict or prohibit the use of all or a portion of the Services from restricted locations. For more information, please read the applicable user agreements.
Latest News
Tom Horn Gaming to showcase its rich portfolio of iGaming Solutions at SBC Summit Lisbon
Horn Gaming, the award-winning iGaming supplier, is gearing up for its debut at the SBC Summit in Lisbon, happening from September 24-26, 2024, at the Feira Internacional de Lisboa & MEO. At stand B900 the supplier will be showcasing its full range of products and services
15 Years of Expertise in iGaming
With 15 years of experience under its belt, Tom Horn Gaming has become a major player across various casino verticals – from slots to live casino solutions, and aggregation services. The company’s diverse offering is designed to meet the needs of operators across various markets, enhancing player engagement and boosting revenue growth.
Data -Driven, Player-Centric Slot Games
At SBC Summit Lisbon, Tom Horn Gaming’s RNG slot games will take centre stage, giving attendees the chance to check out popular titles like the signature slot series, Crystal Fruits and get an exclusive sneak peek at upcoming games, including 27 Crystal Fruits and 256 Frutas Grandes. These games blend the timeless appeal of classic slots with exciting proprietary mechanics like QuickXTM and BlastXTM,
Every game in the supplier’s portfolio is crafted with players’ preferences in mind, ensuring market-specific, localised experiences that resonate with players globally. This gives operators a solid competitive advantage in both established and emerging markets.
Leading Live Casino Solutions in Regulated Markets
Tom Horn Gaming has led the charge in live casino gaming, being the first to launch live casino products in the highly regulated Slovak_market. The supplier continues to expand its live dealer studio solutions to other heavily regulated markets in the Czech Republic and Spain. Tom Horn Gaming prides itself on offering jurisdiction, operator, and studio-agnostic live dealer solutions that leverage the latest technological advancements.
These studios are specifically tailored to meet the unique demands of each market, delivering a seamless and engaging player experience. Additionally, operators benefit from exclusive branding options allowing them to stand out in a competitive landscape.
Global Distribution Network
With over 200 global technical connects within igaming industry, Tom Horn Gaming has built a powerful distribution network, offering an attractive mix of exclusive third-party content and in-house titles. Designed for fast integration and quick time-to-market, the supplier’s content aggregation platform helps operators deliver high-quality content efficiently. Content partners can also benefit from the platform, expanding their reach to a global audience.
Tom Horn’s aggregation services are highly efficient and are perfect for bringing diverse content to players, helping operators meet the needs of a broad range of markets
Meet Tom Horn Gaming at SBC Summit Lisbon – Stand B900
“We’re excited to be part of SBC Summit Lisbon and show off our full suite of solutions to industry partners and potential clients,” said Ondrej Lapides, CEO of Tom Horn Gaming. “At stand B900, we’l be delighted to chat to existing and potential partners about our extensive range of slot games, dedicated live dealer solutions and other product verticals, all designed to help operators thrive in today’s highly competitive iGaming landscape.
If you’re attending SBC Summit Lisbon, visit stand B900 to meet with Tom Horn Gaming’s team to learn more about how Tom Horn Gaming’s slot igaming solutions can boost your revenues and player engagement.
Latest News
9 Aspects to Look For in a Top iGaming Payment Provider
There are hundreds of iGaming payment providers out there. Which one will meet your demands? Many businesses ask this question. Not many get the right answer.
With the global online gaming market expected to reach $127 billion by 2027, getting the right iGaming payment services is paramount. Simply put, the better provider you have, the more customers you can serve, the faster payments will be, and the higher your income you will have.
Yet, choosing the right provider can be challenging, especially with the unique needs of high-risk industries like iGaming. In this piece, we will go through a nine-point checklist. These steps ensure you enter a pool of top iGaming payment providers.
So, buckle up.
1. Verify If an iGaming Software Provider is High-Risk Friendly
iGaming is a high-risk industry. That means higher fees and more scrutiny. Choose a provider specialising in high-risk sectors to avoid disruptions and reduce transaction rejections.
Keep note: Not all payment providers are willing to work with high-risk industries, leading to potential delays or increased fees.
The right iGaming payment provider must have these aspects to be truly high-risk friendly:
- Have no volume restrictions
- Understand the industry to the bone
- Provide a dedicated account manager with expert knowledge of the sector
- Support licenses in different jurisdictions
2. Check How Long It Takes for an iGaming Payment Provider to Open a Business Account
Now, you narrowed down the list of best payment providers for iGaming. The next important question to ask:
How long will it take to open a business account?
In most cases, when you need to open a business account, you can expect two challenges:
- Lengthy approval process.
- A lot of documents to provide.
Many banks does not understand industries like iGaming. That is why they ask tons of unrelated questions and require documents you don’t simply have. As a result, getting a business account can take weeks or months.
A good provider opens a business account for you in several weeks. A great iGaming software solutions provider opens a business account in about 48 hours.
https://account.paydo.com/en/auth/business/sign-up
3. Make Sure an iGaming Payment Provider Has SWIFT In Their Arsenal
For international transactions, SWIFT is a must. This scheme allows for faster, more secure iGaming transactions. It reduces delays and ensures smooth processing of player deposits and withdrawals.
Without SWIFT, iGaming operators risk slower processing times and dissatisfied players. Yet, the rule of thumb dictates that the more payment schemes you have access to the better.
4. Does iGaming Payment Provider Offer Multiple Currencies?
This should be your next question. Even if an iGaming payment provider is high-risk friendly, opens a business account fast, and is connected to SWIFT, this does not mean you get many currencies to work with. You still need to pay contractors in their local currency.
Also, setting up a multicurrency account can come at a significant cost. Banks and EMIs impose additional charges for each extra currency you might need.
5. Check If an iGaming Payment Provider Offers Merchant Services
If you have a website accepting payments, you need a good checkout.
What constitutes a “good” checkout?
In most cases, the number of chargebacks, holds, rolling reserves, as well as payment methods available. Besides, you want a checkout that can be easily integrated.
6. What About Mass Payouts?
Every iGaming operator knows how hard it can be to send multiple payments to several customers. When you don’t have mass payments with your iGaming provider, every payment must be made one by one. Without saying, it will take a lot of your time and nerve.
.
7. Confirm Whether an iGaming Payment Provider Have Virtual and Physical Cards
Virtual and physical cards allow flexibility for both business payments and player withdrawals. They can be used for payouts, ad spending, or corporate expenses. Besides, having a personalised plastic card speaks volumes about your brand.
8. Compliance With Global and Local Regulations
After going through the arsenal of services of a chosen best iGaming payment provider, the next logical step is to look at compliance. You must be sure a selected provider has the legal right to provide certain services and operate in partnership destinations.
To illustrate, as an iGaming payment provider, one should have at least these:
- The Financial Conduct Authority (FCA).
- Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
As an add-on, a good iGaming payment provider should have an Authorised Electronic Money Institution (UAB) license. This one allows the platform to issue electronic money and offer related financial services within the European Union (EU) and European Economic Area (EEA).
9. Double-Check the Security Measures an iGaming Payment Provider Implements
For top iGaming payment providers these security measures are non-negotiable:
- Built-in anti-fraud.
- PCI-DSS Level 1 compliance.
- 3D-Secure (3DS) technology.
- Anti-money laundering (AML) protocols.
- Automated KYC.
PayDo—All Payment Solutions in One Place
While all roads lead to Rome, all aforementioned aspects lead to platforms like PayDo.
PayDo is a payment ecosystem. It made sure all the aspects we talked about were covered. Namely, the platform is:
1. High-risk friendly:
-
- No volume restrictions.
- No hidden fees
- No minimal commitments
- No minimal balances
- No nonsense requirements
- All iGaming licenses (Curacao included).
- In-depth understanding of high-risk industries.
- Curacao and other licenses supported
- A dedicated account manager with extensive experience in iGaming
- Momentary payouts
- Scheduled payments
- 140+ destinations
2. Business account opening:
-
- Takes about 48 hours.
- Completely remote.
- Requires a standard package of documents.
- Onboarding is as quick as verification.
3. Nine payment schemes:
-
- SEPA
- SEPA instant
- Fedwire
- Target 2
- FasterPayments
- Chaps
- BACS
- Kronos2
4. Multicurrency:
-
- Dedicated IBAN with 35+ currencies and 150 countries.
- Personal account with 12+ currencies.
- No extra charges for currencies.
5. Checkout:
-
- Zero chargebacks
- No holds or rolling reserve
- Easy API integration
- 350+ payment methods
- Localization
- Instant settlements
- Conversion rate > 98%
- Unlimited websites
6. Mass Payouts:
-
- Automatic payouts without any manual inputs.
- Customers receive their funds without fees.
7. Virtual and Physical Cards:
-
- Offer employees personalized cards.
- Improve corporate expense management.
- No limit on issuance.
8. Compliance and Security:
1.Licensed by:
-
-
- FCA.
- FINTRAC
- UAB.
-
2.Security measures:
-
-
- Built-in anti-fraud.
- PCI-DSS Level 1 compliance.
- 3D-Secure (3DS) technology.
- Anti-money laundering (AML) protocols.
- Automated KYC.
- Encryption.
- Safeguarding.
-
Besides, recently PayDo was nominated for the Payment Innovation of the Year award at a
reputable iGaming-focused SBC 2024 convention.
Finally, PayDo have become a SWIFT Direct Participant. Now the platform can send and receive messages directly through the SWIFT network without intermediary banks.
For PayDo clients, it means faster transaction speed and fewer delays.
Conclusion
When choosing a payment provider for iGaming, check these aspects:
- High-risk friendly;
- Business account opening;
- SWIFT availability;
- Multiple currencies;
- Merchant services;
- Mass payouts;
- Virtual and physical cards;
- Compliance;
- Security measures.
The list is that long because top iGaming payment providers like PayDo work hard to develop a solution that will stand out in a competitive market. With PayDo, you get the services of 8-9 payment providers in one place and under one contract.
Don’t hesitate to open an account right now. We are ready when you are!
-
Latest News4 days ago
Oddsgate highlights success in data management for robust iGaming operations
-
Latest News4 days ago
SPOTLIGHT SPORTS GROUP LAUNCHES HALO CONTENT DESTINATIONS
-
eSports4 days ago
S8UL strikes big at MOBIES 2024; first Indian esports organisation to bag nominations in four categories
-
Latest News4 days ago
SOFTSWISS Partners with Bambi Data to Enhance Analytics Capabilities
-
Gambling in the USA4 days ago
Gaming Americas Weekly Roundup – September 9-15
-
Latest News4 days ago
OpticOdds scores partnership with global operator Sportsbet.io
-
Latest News5 days ago
QTech Games strengthens its premium platform with Naga Games
-
Latest News4 days ago
Boldplay Expands UK Presence With Rank Group Partnership