A report published by Forbes shows that only 10% of online gambling startups succeed, while 90% fail within the first two years. Regardless of these figures, the American Gaming Association report shows that the revenue generated by sports betting, casino games, and iGaming in the first four months of 2022 was almost $14.31 billion. The 90% of startups that fail can learn from the success secrets of the 10% that succeed, and they can also grow and remain stable.
Why do 90% of online betting startups close within their first two years?
The online gaming market in the US and the world is new and still undergoing multiple challenges. Starting an online gambling investment requires a lot of time and money. The investors need to partner with online betting platform providers which offer their products at different prices.
The new establishments take time to build a strong online reputation and gain customers. There are different sets of online gambling regulations that casinos must meet. They include licensing, tax requirements, security, and platform provider requirements. Depending on the supplier, online games might have a poor design that draws players away.
The website could be hard to navigate, slow, unresponsive, and lack adequate player support. The marketing approach could be wrong and fail to attract proper leads or conversions. These points that lead to failure are the secrets behind success.
Secrets to an online casino startup success
Money factor: Money is an important factor in online casino startup success. The investor requires a strong business finance management team to ensure all money invested is managed properly.
Marketing factor: Marketing is another key factor that requires a skilled marketing team. They must know where to market, including the segments to target and the incentives to give.
Games factor: The commonest types of online casino games are slot games and cards, but there are many other types of games offered. The attractiveness of the games matters a lot.
Website factor: The website should be responsive and easy to navigate. The design needs to be attractive and mobile user-friendly for success.
Payment factor: Many biggest startup failures are caused by poor payment solutions. The online casino needs to allow payments by visa cards, e-wallets, cryptocurrency, bank transfers, prepaid cards, etc. SSL encryption is an important security factor in providing online payment solutions. Winnings payouts should be convenient and timely to avoid disappointing customers.
Customer satisfaction factor: One dissatisfied customer can negatively affect ten others. The new online casino startup needs a friendly customer service team to offer timely support to customers whenever they need it. Customer satisfaction requires a multifaceted approach that includes product design, payout percentages, bonuses, and support.
2018 ·