Online gambling businesses have a lot to worry about, from obtaining gaming regulations and licensing to meeting the financial requirements necessary to register such a company. However, that is just the easy part. As a gambling platform, the security of data and funds is your primary concern. This includes onboarding auditors, accountants, and encryption experts to ensure your platform is safe from lurking fraudsters.
Despite these hurdles and challenges, the gambling industry continues to witness an increase in the number of available online businesses. A run through OntarioCasino.online shows a review of several licensed operators in Ontario. In today’s post, our author Frank P. Mickens analyses the online gambling business model with a view to understanding what it takes to become a casino operator in Canada’s largest province.
As a Business
Internet-based gambling dates back to 1994 when invites for the Lichenstein International Lottery were issued to the general public. Since then, internet gambling has metamorphosed into a significant force within the gaming world. The primary reason for this is the widespread use of the internet and ease of penetrating multiple gaming markets. Before the internet came along, gaming operators had to offer physical gambling venues to the public and wait for gaming and entertainment lovers to come to them.
While this business model worked, it was limited in its output as physical structures could only house a limited number of people and had to be constructed in several locations to maximize profit. Consequently, going digital provided an opportunity to reach more gamers, regardless of their physical locations. In the 18 years since the Lichenstein International Lottery, the online gambling industry is now worth several billions of dollars amid the continued penetration of online gaming operators.
What it takes to start an online gambling business
- Licensing and Capital
The older generation of gamers will remember a time when gambling was illegal and frowned at by most countries. However, the story is gradually changing as most jurisdictions have chosen regulation instead of outright banning. In Canada, federal law prohibits gambling activities on gaming sites not owned or licensed by provincial governments or their agencies. For instance, online casinos need to register with the Alcohol and Gaming Commission of Ontario before floating a platform for gambling in Ontario.
The conditions for awarding gaming licenses vary from province to province, but the foremost requirement is capital. Intending gambling operators must satisfy the regulatory agencies of their financial capability to pay out winnings. This is done by meeting the minimum share capital requirement for gaming companies.
- Security
Another vital hurdle an intending online gaming operator needs to clear is that if security. Data and wallet hacks are commonplace in the modern world as vast sums of money move online. Online gaming businesses can only attain customers’ trust by protecting their confidential information from getting compromised. Gambling today now requires adequate security measures are put in place to maximize entertainment and safety. This includes using high-standard encryption software to mask their customers’ payment details, names, and other personal information from hackers.
- Variety of Gaming Options
While the other requirements discussed so far are behind the scenes, the variety of available gaming options makes an online casino attractive to customers. Online casino operators must decide what games to offer, from slots to reels and live games. It is no gainsaying that the more game varieties a platform has, the higher its chances of winning new customers.
- Accessibility and Bandwith
As an online business, the website must be accessible to different categories of users. This simply means making your website interface adaptable to different screen sizes, from laptops to tablets and smartphones. In addition, the hosting server should also have high bandwidth to ensure many people can play simultaneously without any lags in the system.
- Balancing the books
Heightened regulation means online casinos must file tax returns to the relevant authorities. Failure to meet tax and other financial obligations may lead to the revocation of your gaming license, an eventuality that serves your business no good. This makes it essential to ensure high compliance standards by engaging professional auditors and accountants to balance the books for each financial year.
Like most businesses, investors in the gambling industry are looking to make a profit. However, government regulation helps to ensure that these businesses do not compromise customer safety in the hunt for profit. As business owners, players, and regulatory agencies, the goal is to make the online gambling world safer for all to participate freely.
