Online Casino Business Plan

If you want to earn huge money within a very short period of time, then you can consider starting a casino business. Starting and running a casino are big jobs. The business demands huge capital investment and definitely, it is not easy to run a casino. Here in this article, we have provided a comprehensive guide on how to start a casino business.

In the online casino business model, the house edge has a major influence on your company’s earnings. In general, the house edge is the statistical percentage of total initial player wagers that you expect to earn in the long-term if every player has a perfect strategy against the game. If YES, here’s a complete sample online casino business plan template & feasibility report you can use for FREE to raise money. Starting a casino and game center in an area that has loads of gamers and gamblers but fewer casinos and game centers can be very lucrative.

Actually, the casino comes to the gaming and entertainment industry. Basically, casinos arrange certain types of gambling activities. In casinos, customers gamble by playing games of chance, in some cases with an element of skill, such as craps, roulette, baccarat, blackjack, and video poker. Most of the games come with mathematically determined odds that ensure the house has at all times an overall advantage over the players.

Currently, a modern casino is like an indoor amusement park for adults. The entire premise comes with musical shows, lighted fountains, shopping centers, lavish hotels, and elaborate themes that help draw in the guests.

Market Opportunity for Casino Business

The casino market is very wide globally. Casinos are one of the major revenue-contributing segments in the global gambling market. The global casino market is highly diversified and competitive. It is because of the presence of a large number of regional and international vendors across the globe.

However, the industry experts are expecting growth at a CAGR of 15.25%. Some of the major casino markets in the world are the USA, Asia Pacific, Europe, Middle East, Africa, Canada, and Latin America. Basically, Macau, Las Vegas, Nevada, Singapore, France, Atlantic City, and New Jersey earn the highest revenue from the casino business.

Different Types of Casino Games

There are different types of casino games that are very popular nowadays. Some of the most popular casino games are

Slots

Basically, slots are a specific type of machine. It plays a number of different games. Here, a player inserts coins into the machine. Then they pull a handle or press a button. This causes the wheels to spin. When the wheels stop, the player gets paid based on the pattern of symbols.

Blackjack

It is a card game. Here, an individual can play the game with a dealer. The dealer deals out two cards to each player and keeps two cards. The dealer has one card face up and one down. The players take turns trying to get as close as they can to 21. The player calls “hit” to get a card and end their turn. A player can also call “double.” They can only get one card and their turn ends. If a player has two identically numbered cards, they can split.

Roulette

Basically, roulette is a table game. The table has numbers 0-36 and 00. It has additional betting for even-odd, red-black, low 18-high 18, low/middle/high 12 and for the first/second/third columns. The dealer spins the wheel clockwise. Then, they roll a ball counter-clockwise. The ball lands in a numbered slot on the wheel. All bets that correspond with the number win.

Poker

Poker is one of the popular casino games globally. It is also a game of five-card hands. Hands are ranked from lowest to highest. The order of hands is a high card, pair, two pairs, three of a kind, straight, flush, full house, four of a kind, straight flush, and royal flush. The player with the best hand wins.

Craps

Craps is a dice game. Here, the players make wagers on the outcome of the roll, or a series of rolls, of a pair of dice. If a seven or 11 turn up on the first roll of the dice, the shooter wins whatever they bet. If the shooter rolls two, three, or 12 on the first roll, they lose the money, but not the dice. When the person rolls a four, five, six, eight, nine, or ten that number becomes their “point.” The shooter keeps rolling until their “point” turns up again for a win or until the person throws a seven and loses the money and the dice.

Casino Business Plan Guide for Beginners

Starting a casino business requires huge startup capital investment. Therefore, you must craft a comprehensive business plan before getting into the business. Additionally, a professional-looking business plan document helps you in securing the start-up investment. Make sure to include a feasibility study that examines the demand for a casino and the justification of investment.

Business Plan For A Resort

In the financial part of the plan, you must include the projected earnings, growth strategy, and marketing strategy. The below-mentioned points will definitely help you in creating a casino business plan of your own.

1. Licenses & Permissions for Casino Business

Licensing and permissions are the crucial aspects of starting this business. First of all, you have to check the commercial gambling regulations. Check if commercial casinos are legal in your state by checking the American Gaming Association’s website. Also, check the local regulations or zoning requirements for operating a casino business in your location.

Additionally, check the alcohol regulations. It is mandatory if you want to serve hard drinks to your customers. Finally, check the age restrictions. Actually, the exact minimum age varies by state. Hence, check your state’s restrictions and institute a policy of checking IDs at the door so that you don’t run afoul of your state’s regulations.

2. How Much Money You Need to Start a Casino

Starting a casino business demands capital investment in building the infrastructure, procuring equipment, arranging resources, and working capital investment. Therefore, it needs a large amount of money to start this business. Actually, a business plan will help you in getting finance from potential investors and banks including other financial institutions.

3. Register Your Casino Business

After arranging the finance, you must register your casino business. You will need to apply for a business license and employer’s identification number (EIN). Additionally, you will need to register with the IRS and any other regulatory bodies that have power over casinos in your area. Also, you will need to obtain a gaming license. It is advisable to engage a lawyer for getting everything done in the right way.

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4. Build Casino Infrastructure

In building the casino infrastructure the primary requirement is the floor area. You will need to secure the required land area for building the casino. In this type of construction, you must engage an architect for creating the plan and execution of the said plan. Before starting the construction, apply for a construction permit from the local Govt. authority.

After completion of the construction, you will need to prepare an interior floor plan. You must provide a comfortable gaming atmosphere for your patrons. Additionally, procure the gaming equipment from a reliable supplier. Some of the most important instruments are slot machines, video poker machines, roulette tables, poker tables, blackjack tables, craps tables, baccarat tables, chips, cards and card shoes, and safes. Don’t forget to purchase business insurance to protect your business from any unwanted losses.

Finally, you will need to hire human resources for operating the casino. It is advisable to hire an HR manager first. And plan a full-proof HR policy with a recruitment structure. Hire only skilled and experienced manpower for a smooth operation.

5. Security System in Casino Business

In the casino, there are large amounts of currency handled within the premise. Hence, it raises the possibility of happening crimes. Therefore, you will need to take security aspects very seriously. One of the most basic steps you can take is CCTV camera installation. Besides a specialized surveillance department, you will need to take care of the physical security too.

6. Promote Your Casino Business

Basically, the casino is an upscale entertainment business. So, you must promote your casino in every possible option you have. Make your casino inauguration a grand function. Aware of the media about the opening. Prepare a media kit for the reporters. Invite the celebrities on an opening day. Advertise the inauguration ceremony in both electronic and print media. Try to collaborate with travel and leisure holiday companies. Promote your casino business on the travel blogs too.

About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.

If you are starting a casino, it is likely that you will require a business plan at some point. The experts at Pro Business Plans have extensive experience working with online and offlinecasinos to prepare plans for investment and strategy. This article provides information on what is included in the plan and how it is structured.

Casino Business Plan

There are several things to consider when planning for a new casino including the location, business model, and other supporting amenities. For instance, a casino with a hotel andlive entertainment would be strikingly different than one that operates exclusively online. While both may be equally lucrative, there are unique risks and benefits associated with each business model that investors will consider.The purpose of the plan is to organize information related to the unique aspects of your Casino as reflected in the business model and estimated in the financial projections.

Business Model

The business model for a casino is based upon several factors. It is not always about the payout ratio for casinos, as some drive visitors in with other amenities suchas a fun atmosphere, elegant perks, and outstanding live entertainment. Others may operate a leaner business model to in fact focus on the payout levels. Online casinos for instance, have much lower overhead and can afford to adjusttheir payouts to have the same margins as illustrious brick & mortar casinos, in order to generate higher visitor returns.

Positioning

The positioning of a casino can vary wildly and the importance of its positioning depends upon the competition. For instance, a casino that operates in Las Vegas will need outstanding positioning due to the highly competitive natureof the market. In contrast, a casino that is the first within a metropolitan area, may only need to have a full gaming operation in order to be successful. Nonetheless, there are many cross-selling opportunities for casinos that are included into the positioning. Popular revenue streams include entertainment, food & beverage, lodging, and souvenirs.

Location

When it comes to a brick & mortar casino in a competitive environment, few things can overshadow the importance of a great location. The difference of having a beach front casino and hotel relative to one located in a working classresidential area can be substantial. Therefore, it is critical that the location balance price and accessibility with some degree of luxury and prestige. Purchasing the most expensive building will require low payouts and be highrisk, so finding an appropriate balance is almost always the optimum solution.

Marketing Plan

The marketing plan of a casino must be very careful to not violate policies and laws depending on the state that it operates in. For instance, Google AdWords and Facebook PPC prohibit advertisementsrelated to gambling. Promoting any online gaming can also be problematic of gambling is prohibited within a certain area by online users. Because of this, many casinos arevery careful about how they promote and where they promote as to not cause conflict and avoid tension with regulators. Regardless, a plethora of marketing options exist for casinos that remain within their arsenal for implementation.Investors will want to know what marketing channels are being utilized and have confidence that none are in violation of state or national regulations.

Mass Marketing

Many casinos, due to their large budgets, often promote using mass marketing on regional television channels and billboards. Some may also formstrategic partnerships with travel agents and tourism agencies. The nature of a mass marketing campaign depends upon if the casino is targeting regional companies or if it targeting tourists. For instance, the casino may place billboardadvertisements along a major highway going into the city that suburban residents commute on. However, it may target placement of brochures in hotels and concierge services if it is targeting the tourist demographic.

Digital Marketing

The digital marketing a casino can always be a bit tricky. Most online advertising is done through platforms like Google AdWords, Facebook, and Bing advertising programs. However, these platforms have policies in place that restrictpromotions related to gambling. Even so, there are many companies that may be approached directly and are very receptive to promoting gambling. Websites such as these must be approached directly with deals negotiated with the internal market teams opposed to intermediate marketing platforms in order to avoid compliance issues.

Financial Projections

The financial forecasts for a casino will essentially diverge under two circumstances based on whether the casino is online or offline. If it is offline,its size will be shaped by its location and capacity. Once this has been determined, the most effective way to form financial projections is based upon prior operation history with an analysis of comparable casinos. For instance, ifyou have 100 slot machines and 600 hotel rooms, the financial performance of similar sized casinos would be analyzed in order to form an estimation.

Revenue Projections

The revenue projections for a casino can be based on a variety of detailed assumptions including the revenue per customer, the payouts of the machines, and the forecasted annual visitor demand levels. If there are multiple revenuestreams such as entertainment, gaming, and lodging, then it is conservative to separate these forecasts in order to demonstrate their individual cost of goods sold.

Budget Forecasts

The budgeting for a casino can depend upon many factors. If the casino is new and needs to be built-out or acquired, then using quotes from reliable third party construction and real estate appraisal firms will be most advantageous. Most investors will either determine the appropriateness of the budget based upon the acquisition of quotes by third parties or based on a comparable analysis of the cost to construct other casinos.The specific details of the budget depend upon several factors that you will need to consider and be very conservative about such that you strike a balance between having adequate capital, but not asking for far too much than isrelevant.

What is Included in Our Custom Casino Business Plan?

• Marketing Plan
• SWOT Analysis
• Competitive Analysis
• Profitability Analysis
• Personnel Plan
• Organizational Chart
• Company Valuation

Online Casino Business Franchise

• Executive Summary
• Company Description
• Keys to Success
• Three Year Objectives
• Product or Service Description
• Market Research
• Fundraising Support

Online Casino Business Plan Template

• 12 Month & 3 Year Profit & Loss
• 3 Year Balance Sheet
• 12 Month & 3 Year Sales Forecast
• 12 Month & 3 Year Cash Flows
• Break-Even Analysis
• Financial Ratio Analysis
• Management Team