Online Casino Franchise: How to Set Up Business and Start Earning?
Online gambling organization is a profitable business. According to forecasts of Juniper Research, the online gambling market volume will reach $1 trillion by 2021, and the amount of gambling platform users will increase up to 684 million people by 2022. However, the establishment of your own iGaming resource is a hard and cost-intensive work, which not all entrepreneurs can afford. At the same time, there is the way out: the application of an online casino franchise. The article reveals what it means and how it allows to set up your own business.
Online casino franchise: what is it? General concept
The franchise is a type of business relations where one party assigns the right for using its brand or trademark during entrepreneurship activities to the second party for monetary reward. Participants of such a deal include a seller (parent company) – franchiser and a buyer – franchisee.
Within this cooperation form, parties sign an agreement describing their rights and obligations as well as terms and conditions for the use of franchise elements. Franchisees adopt an operating procedure of the selected company, its marketing strategies, name, unique style, licenses, and other business attributes.
On the other hand, franchisers obtain two kinds of payments from purchasers:
A lump sum. This payment is given to the parent company once for the possibility to function under its name. The size of the fee is determined by the seller.
A royalty. Periodic deductions for the use of franchise. Their sum is stipulated individually.
The acquisition of online casino franchise takes a little time. Besides, entrepreneurs receive a ready-made business that can generate profit since the first days of its operating under the name of the well-known brand.
Online casino franchise: why is it beneficial?
There are several methods for launching a virtual casino: to develop a platform on your own, to buy a turnkey gambling platform, or to purchase a franchise. The first option is expensive and time-consuming, while the second one requires huge investments. Setting up of a gambling club with the franchise is the simplest scenario of your own business. Let’s examine the core advantages of this approach.
Easy and fast launch
The establishment of your own gambling resource can take several months, a year, or even more. Entrepreneurs should explore the market, register the company, obtain a corresponding license, elaborate a technical structure of the portal, choose software and integrate it with the platform, and proceed to brand promotion.
One needs weeks to open a casino with the franchise. Moreover, new gambling market players are immediately provided with an off-the-shelf operation scheme and a necessary package of tools for portal functions.
The arrangement of your own license costs a bundle in some cases. This process can take several months. Furthermore, it is impossible to get licenses in a range of countries, as online gambling is banned or strictly regulated by the local laws. For example, Switzerland permits only owners of land-based gambling venues to launch an online casino.
Frequently, the franchise contains the license. Therefore, businesspeople do not have to spend time and money on its preparation.
Saving of expenses for platform promotion
Establishing a franchise casino, entrepreneurs receive the possibility to run business under the famous name. In other words, they should not spend funds on brand promotion and development.
Rapid launch of gambling resource
The franchise allows to set up a gambling website in several days/weeks after signing the agreement.
Advice of experienced gambling operator
What franchise sellers are interested in is that buyers succeed because the higher income partners gain, the more revenues companies obtain. Thus, they constantly support franchisees and provide them with required advice.
Top casinos offer partners to undergo training. In general, it is referred to support service personnel and technical workers.
The gambling market offers a large variety of casinos. Operations under the name of the recognized brand will allow you to outrun small competitors that have just entered the market and have not yet become popular.
What are the components of gambling franchise?
Acquiring the franchise of the reputable online casino, entrepreneurs receive the whole package of services and tools for online business operations. The best offers include:
A gambling license. You can’t work legally without this document.
A ready-to-use website. The portal also features a modern design and a user-friendly navigation.
High-quality software. This point consists of the following: a gaming platform, popular games, payment systems, affiliate programs, tools for analyzing the online platform efficiency, etc.;
Legal backing. Sellers assist franchisees in various issues, such as enterprise registration, taxes, and so on;
Connection to parent company’s support service. Due to this element, entrepreneurs can transfer customers’ problems to competent specialists.
Platform promotion tips. Recommendations for marketing tools, advertising, and special offers.
How to buy iGaming franchise?
Currently, gambling companies of different scales and focuses offer the launch of online casinos with the franchise. Each one has its own conditions. That is why you should prefer a reliable partner in order to earn money.
To conclude a profitable agreement, you should investigate the company history and reputation to realize how popular it is. You should also analyze a feedback from gambling platforms cooperating with this firm. Another significant aspect is examining players’ opinion about the gambling resource. It will help to figure out how responsible the company pays out funds won by clients.
Selecting the company for franchise acquisition, you should thoroughly study all paragraphs of the agreement. You’d better seek expert advice in order to avoid challenges when concluding the deal.