Episode Transcript
[00:00:00] So welcome everyone, and in this video I will Share with you 7 things you should not to do if you want to start an online gambling business.
[00:00:11] So what is it all about? Why 7 things not to do? Because I'm sure that you've heard such thing as, well, it's easier than ever to start an online gambling business, to start every business, but it's just the same with anything.
[00:00:26] So it's easier than ever to run a New York marathon, or it's easier than ever to grow up a kid. But then, guess what? Not everyone wants to run the marathon. Not everyone wants to and can finish it. Even if they start, even if they buy a ticket to get to New York, if they start, it's not always that they finish, right? So it's the same with the business. And understanding seven things not to do will allow you to avoid mistakes because it's something about the mindset and you know, partially like 80% of the things are about the mindset. So the mindset will allow you to move when everyone wants you to stop. The mindset will allow you to keep pulling forward and keep pushing forward even though, well, things look really bad.
[00:01:18] Your site, right?
[00:01:19] So with the seven things not to do, I went to a couple of friends of mine and they are running the online gambling businesses. One of them is running Sportsbook and he told me, yeah, that's really good. And even if you leave just the 6, the 0.6 and 7, then it's good enough for you to actually show this to the public.
[00:01:44] Because with things that happening currently, it's really healthy to give people this understanding on the business itself, on the things that, the things that are not as they all describe things. This business is not as easy as it may look like. It's not plenty of money on the table for everyone to take.
[00:02:07] So let's start with the thing number one, right? So the thing number one is do not start with the wrong mindset. And by saying that, what I mean is that, well, imagine the situation that you actually lose 50,000. So you're losing 50k as a casino owner, as an operator. So you just launched your business and even though the house always wins long term, well, short term luck may happen on every site. So someone comes to your new launched online live casino and wins 50,000, will you pay out 50,000 just like that, even though you started yesterday?
[00:02:50] So answering this question, if you will say no, we'll obviously leave you without the license. So because every online gambling business needs a license to operate, so you are losing your license Immediately you're losing rights to operate the business. Partners will run away from you, you will lose the contracts, and banks won't open online accounts for you, like business accounts for you.
[00:03:19] So answering this question as yes will put you in a good situation because you understand the risk. Any business is about the risk. And in this business, you do not offer services, as let's say plumbers did, right? Where you do not sell any goods, you do not produce any goods. What you actually offer to your clients is the experience.
[00:03:41] And this experience, when they come to your casino, also involves payouts to your clients. So it's not like you are there to just collect money from everyone. You are also there to provide the experience. And part of the experience comes to payouts. So if you are ready to make payouts, if you have a bank for that, if you have a budget for that, if you understand that short term pitfalls happen, and if you understand that the house always wins, like long term, then you are fine. So the second one is do not start the business without actually understanding the business.
[00:04:17] When clients come to me, they want to have the license, they want to open banking account. And then I'm asking a couple of questions on what is your market, where you will get your clients from?
[00:04:30] Or like what kind of the business, what niche will you be focusing on? It's very often that I hear that we want to work everywhere. So we want to work in the us, in Canada, in Europe, in Asia, in Middle east, like everywhere, right. And also we want to launch several verticals. So we want to focus on live casinos, we want to be sportsbook, want to run fantasy games. And sometimes they don't even know what they want.
[00:04:56] So if you have this recipe, then you are set for failure.
[00:05:03] Because understanding the business is primary to have improved chances on success. So you have to focus on some vertical that is just like 1 inch wide and 10 miles deep.
[00:05:18] You have to understand what that niche is about and you have to understand basics. Like for example, games like live casino games will be completely different in Europe and completely different in Asia.
[00:05:34] You know, specifically the same big name and big houses, big software development houses, they have different lines specifically for European markets and specifically for Asian markets. Because design is different. Because what is normal in Europe not always works in Asia, not always works in the US.
[00:05:57] So understanding this business is crucial for your success as well.
[00:06:03] The thing number three is do not start without the license and assess the importance of having a banking account. Payment system, providers, do you need them? If you need them, then you need a structure to make sure that you are well set, that you are on the right foot, that your taxes are optimized, that you can compete with other businesses.
[00:06:24] And this is not an easy question, because if you do not have the license, you do not have any access to the market. And look at it this way, if you want to run the drugstore, right, I don't want you to operate without the license. I don't want you to sell drugs to my family, to me, to my kids, without having the license. Even if you tell me that everything is fine, everything is under control, you use the best vendors only. I would love to see some third party controlling you. And actually the assurance that your name and that your identity was assessed by certain authorities, that the KYC was there, and now you have that right to sell drugs, to sell alcohol, to sell whatever. Because without that I take much more risks.
[00:07:17] So that's the same with the license. I don't want you to operate without the license. I'm not going to play there. And this is the way big players are looking at it. If you want to retain your clients, if you want your clients to come back to you, they have to have that peace of mind from the beginning that if you have the license, that you are fine, you are checked, you are good to go. At least they have less risks that something will run wrong at the point where, let's say you have to make some payouts, you have to make some moves to actually to prove yourself. Because they already proved themselves.
[00:07:51] They bet money that they made that they earned with your casino to get that good experience.
[00:07:58] So if you are looking for the license, then I will leave my number below and the number of my team. So if you are looking for the license, then reach out, ask your question and someone from my team will get back to you to answer all your questions and to help you getting the license. The thing number four is do not think that you can start everything on your own.
[00:08:23] Today in this world, events are happening everywhere. We just arrived from Toronto and the event was called Sigma. So Sigma is happening everywhere. There was Sigma back in Dubai, Sigma in Toronto. Now it's going to be Sigma in Belgrade and Sigma in Malta.
[00:08:41] Now as I speak, a few hours from now, I will have a plane to the IGB in Amsterdam. Two months ago there was the biggest event online gambling event which was called like London Ice. It happens every year. There was an exception due to Covid, but it happens every year. So you see that there is no shortage for events. So what happens of these events? So you can meet everyone you want. You can meet pay platform providers, gaming providers, payment system providers. You can meet legal accounting services. If you are looking for affiliates, well, guess what, you can meet them there because lots of affiliates visiting these events. Some events have specific like independent events, like as a second event, like a part of the major event where there are only affiliates and you can get there if you are an affiliate only or you have to pay a commission because affiliates, you know, make, make or break your business.
[00:09:40] So let's say at this event like IGB event, like half of the exhibition, half of the conference will be for the affiliates. It means that the half of the event will consist of operators that basically present the offers like games to affiliates. So affiliates come there, you can take advantage of it. If you just move, you stand, you get yourself from the bed, from the sofa, wherever you are, you and you visit one of these events, they're happening everywhere. If you are in the U.S. such events happening in Vegas. If you are in Canada, Toronto is the name. Europe, everywhere in Europe, it's huge.
[00:10:24] So there is no excuse Asia as well. There is no excuse for not attending events. If you want to build connections and if you are, you know, starting and you are seriously starting because everyone I know, everyone successful in this business, they do, they do attend the events, they network, they understand what offers work, they speak to people and they always like in the game.
[00:10:49] So this is just like it's normal. The thing number five is don't start this business without understanding.
[00:10:57] Well, I can call it the business marketing customer acquisition strategies. So yeah, the business. How will you do business with your clients?
[00:11:07] How will you attract your clients? What is the cost per acquisition? What strategies are in place for this particular market? What are the specifics of the market? Do you know that like if you focus on one market only, for example, you focus on the market of the United States. Well, do you know that on the market of the United States you have like different states with different licenses?
[00:11:32] Most of the states do not allow online gambling business. And now they are like in a process of change when they're assessing the opportunities to actually issue their own local licenses. Do you know that let's say in Pennsylvania it costs 4 million to get the license, Delaware around 100,000. It's not that easy, but still every state different rules.
[00:11:54] Do you know the specifics of the business? If you focus on some Asian countries, are you sure that you can use this marketing medium, like for example social networks or maybe Google, maybe television or radio to actually market your business and to get clients that way because like laws are consistently changing. Everything is changing, everything is moving. What was allowed a year ago in one country is not allowed today. You know, the ad space becomes scarce.
[00:12:23] You are fine to use only, you know, messengers, for example. In some markets you do not have even the ability to use the social networks because of the laws and specifics of the market. So do you know how to market your business and what the cost per acquisition should pay to guarantee you the success long term?
[00:12:49] Now the big one. So let's get to the heavy ones that the ones that people don't want to see, they don't want to hear.
[00:12:56] So the number number six, the thing number six, do not start this business if you are on the edge of big changes. If you do experience some serious changes in your life, do not start if you are broke, if you are looking for the last shot, for the last, you know, place to go.
[00:13:23] This is not the best business to go if you are with that kind of, you know, mindset where it's really scarce and you are looking to get the cash flow as soon as possible.
[00:13:35] So the reason of that is that you have to have multiple things even before you start your investments have to be in these things. You have to invest money, time, energy, work in order to even launch the business. And you have to spend money to get the license, platform, software providers, payment system, banks, all that require time, energy and work. Right?
[00:14:02] So that's not a good idea to start it if you are broke as well.
[00:14:09] So like it's really easy to find information on how great this business is. And even though you know there are many businesses that are great, everything comes down to the financial statements, everything comes down to the math into understanding that in this business, like with any other business, there is an investment and there are certain margins that you can get if you do everything right. Right. So probably your business requires some team because some starting everything on your own is not a good idea. So you'll need a team members, as I said, you will need a software providers, you will need licenses and all these things that are hugely important for your business.
[00:14:55] Okay, so let's go to the thing number seven, which is do not provide the bad service to your clients. In this world in 21st century, it's easier than ever to get your background check. So you are visible and you are transparent to everyone. If someone wants to find your domain, they will find it on Google. And if you provide bad service to your people, if you are slow on answering the questions to your people, if you are slow on making payouts. If you're making rules as you go. If you decide to make payouts, let's say within a week when you promise to do payouts, know immediately, which is a good practice today, then people will know about this immediately. They will leave feedback and anyone else who is somehow serious and evaluates that opportunity to go and to spend money with you, they will probably just, you know, stop. They will choose something else.
[00:16:01] So that's very important. Do not provide bad service, which is support payouts, experience.
[00:16:10] Do everything as good as possible, follow the last market trends and then you will be good to go.
[00:16:18] So these were like seven things that you do not have to do to launch your business. If you have any questions on the license on the banking payment system providers do send us the message and let's see how we can help you. If you are in Europe and Asia, you're in a good spot. If you are in the US then your market shouldn't be the US we are not helping with the license of the United States.
[00:16:46] If you are looking at the markets like Latin America, you're looking at Asian markets, European markets, then you're good to go. Ask your questions and we will help you. We'll be happy to help you. That's it for today and see you in my next video. Goodbye.
