How Much Does It Cost to Start an Online Casino?

Hello friends, my name is Akhi and today in this video I’m going to explain you how much it costs to start an online casino or sportsbook website.

I personally know a lot of successful operators—some spending only $1,000 per month, while others spend $50,000 per month,

So the iGaming business cost depends on many factors, such as where you want to operate, whether you need a license or not, and if so, which license is best for you, as well as operational costs and many other things.

However, in this video, I will only cover the major aspects that are common to starting an iGaming business. So, let’s get started!

Licensing Costs

In some parts of the world where gambling laws are unclear, one can start without a license. However, most countries have some form of gambling regulation, so without a proper gaming license, your casino won’t be able to operate legally.

Licensing costs vary by region and depend on regulatory requirements, tax structures, and application complexity. Here are some examples:

Curacao License: Starts from $15,000 per annum, lower regulatory requirements but less credibility.
Malta Gaming License: Ranges from $25,000 to $50,000 per year, strict compliance but high reputation.
UK Gambling License: It can exceed $50,000 depending on revenue, highly regulated but grants access to a large player base.
Isle of Man License: $35,000+ with additional compliance costs, best for international operations.

Additionally, legal and compliance fees can add another $10,000 to $50,000 per year for audits and regulatory adherence.

Software and Platform Costs

Next, you need casino software. You have two choices – build your own or use a white-label solution.

White-label solutions: Cost between $1,000 to $50,000 upfront, with monthly fees starting from $1,000 to $5,000. These come with built-in games and payment options but have limited customization.
Custom-built platforms: The cost of these platforms can exceed $200,000 and take months to develop. These provide full control over the system, allowing unique features, game customization, and branding.

Beyond that, you’ll need to integrate games from providers like Evolution Gaming, NetEnt, and Pragmatic Play, which charge around 10-15% of your revenue. Additional API integrations for payment gateways, security features, and user management can cost another $1,000 to $30,000.

Payment Processing Fees

Your iGaming site needs to process deposits and withdrawals smoothly. So you need a Payment processing system which include:

Payment gateway integration: $500 – $15,000 setup fee
Transaction fees can be 2-5% per deposit or withdrawal
KYC & AML verification systems cost $1,000 – $30,000 annually for compliance with anti-money laundering laws”

The more payment options you provide (credit cards, e-wallets, cryptocurrencies, and bank transfers), the higher the operational costs.

Marketing & Player Acquisition

Attracting players is one of the most significant expenses in the iGaming industry.

But this cost is totally subjective and totally depends on the operators, some operators spends only $1000, some spends $100,000 on Google ads, meta ads, affiliate marketing, influencers marketing and on a lot of other marketing channels as well.

Customer Support & Operations

To keep players happy and ensure smooth operations, you’ll need a reliable support system:

24/7 live chat and email support: $500 – $20,000 per month, depending on staff size.

CRM software for player tracking and engagement: $1,000 – $5,000 per month.

Total Cost Breakdown

So, what’s the grand total? A small-scale online casino and sportsbook can be start at around $1,000 – $5,000, covering essential licensing, software, and marketing. However, a well-established, feature-rich casino can require an initial investment of $500,000 – $1,000,000+, factoring in compliance, custom software, extensive marketing, and operational expenses.”
To stay profitable, you’ll need to manage your expenses wisely and ensure high player engagement with innovative promotions and game offerings.

Starting an online casino or sportsbook isn’t cheap, but with the right investment and strategy, it can be highly profitable.