The Pros And Cons Of Starting An iGaming Business
If you’ve been paying attention to the acceleration of the iGaming business in the last few years, you might well be asking yourself how you can start your own entrepreneurial venture in this world. After all, iGaming can be hugely lucrative and satisfying, especially if you manage to find and corner a niche.
So, what exactly is iGaming? In a nutshell, iGaming refers to online betting companies who offer games of chance to their customers. This could include sports betting, online casinos, or even esports betting platforms. There are, as you might imagine, benefits and drawbacks to owning an iGaming business. Here are some of the pros and cons of starting your own iGaming venture.
Pro: there’s lots of help out there
If you are looking to start up an iGaming business, then you’ll be happy to know that there are plenty of companies out there that can help you. From reputable casino software providers all the way through to iGaming SEO companies that can help you embed links in content, you’ll find that there are lots of businesses looking to collaborate with up-and-coming iGaming stars. As such, building a network – an essential part of any business operation – shouldn’t be too much of a challenge for a budding iGaming business.
Con: there’s a lot of competition
Although many businesses are lining up to collaborate with iGaming entrepreneurs – or, indeed, because of that fact – there’s a lot of competition surrounding the world of iGaming. This is a hugely lucrative endeavour if you approach it from the right direction, so it stands to reason that lots of other entrepreneurs will be looking to maximize their potential in this area, just as you are. If you do intend to enter the world of iGaming, be aware that you’ll be up against some fierce competition, so you should make sure to adjust your business strategy accordingly.
Pro: it’s pretty much an evergreen industry
The COVID-19 pandemic proved hugely damaging to many businesses’ bottom lines, but not to iGaming. COVID-19 actually gave a big boost to the world of gaming, and since the iGaming industry is adjacent to what many would consider “traditional” gaming, that industry boomed during COVID as well. It’s fair to say that unless a serious economic recession intervenes (in which case many businesses will suffer), the iGaming industry is a pretty safe bet, as there will always be players who want to gamble, so if you can provide that, then you’re pretty much set as an entrepreneur.
Con: there are lots of disreputable suppliers
Unfortunately, since the iGaming industry is so lucrative (and since it trades in real money for its main transactions), there will be lots of suppliers and software providers who are simply looking to rip you off. This goes for pretty much any company you want to work with; whether you’re looking for security providers, software studios, or financial intermediaries, you’re going to have to navigate a pretty murky world and find the reputable companies among the chaff.
Pro: modern tech is making iGaming even more popular
At the moment, the iGaming industry is looking to its future, identifying initiatives like cryptocurrency and NFTs as potential avenues for expansion. Many iGaming outlets already offer payouts in the form of popular crypto options like Ethereum and Bitcoin, and those that don’t are eyeing this potential revenue stream hungrily. It’s easy to see how the Web3 revolution could integrate with the world of iGaming, and the industry is absolutely waiting for the star entrepreneur who can translate this often-misunderstood technology into something palatable for the gaming masses.
Con: many might think your industry is “sleazy”
It’s definitely not true that the iGaming industry is “sleazy”, but there are many who might think that thanks to the negative reputation casinos have accrued. When you tell people you’re an iGaming entrepreneur, you might come up against snobbery or even resistance to what you do, so it’s going to take some extra explaining in order to communicate that your business is entirely on the level. If you’re passionate about your business, of course, you should be able to do that successfully, but it can still feel like a somewhat painful experience.
Pro: it’s fun
Owning an iGaming business can be great fun. There’s a huge degree of creativity in designing your website and attracting customers, and you might even get to playtest the games themselves to make sure they all work, which can be hugely enjoyable in and of itself. Just like every other business, it’s also exhilarating to realize that you’re entirely in charge of your own venture, and you can do whatever you like with it. Owning a business isn’t all fun and games, but you’ll find that running an iGaming venture can be an adrenaline rush.
Con: licensing laws aren’t always clear
Depending on where you are in the world, you might struggle with certain licensing laws or restrictions. Many countries don’t look on gambling favourably, and since iGaming essentially espouses gambling as its core customer interaction, you might meet with fierce resistance from certain governments or organizations if you try to establish your business overseas. It’s worth reading up extensively on the relevant gambling laws for any country you’re trying to enter, because you don’t want to fall foul of legal troubles just for trying to expand.
We hope this guide on the pros and cons of starting an iGaming business has been helpful. Naturally, you’ll have a lot of challenges to navigate as a business owner, but if you dedicate yourself to your work, you’ll overcome them!