A business plan is something that no serious project in absolutely any industry can go without. The sphere of iGaming is no exception. A business plan is the core of the company, a key document that can be relied upon at all stages of the creation and development of an online casino.
A competently and professionally drawn-up business plan is not just a roadmap for your project, but also the key to obtaining a gambling license in a prestigious jurisdiction, as well as the ability to attract investors. That is why saving time and resources on drafting this document is an extremely unwise decision, and the best option is to turn to experienced specialists.
Further in the article, we will list the main advantages of having a casino business plan, describe what it should consist of, and tell how our team can help a project draw up a reliable and attractive iGaming business development plan.
Why do you need a business plan?
When you hear the question of how to start an online gambling business, several fundamental steps come to mind. These are opening a company, writing a business plan and obtaining a license. Let’s talk in more detail about the importance of the second point. So, why is having a business plan a prerequisite for the functioning of a virtual casino or sportsbook?
- A business plan is necessary to manage the project. This is a step-by-step roadmap for 3-5 years, which serves as a guide and does not allow you to stray from your goals and casino business model.
- A business plan is one of the mandatory requirements for a license acquisition. Almost all licensing authorities ask applicants to provide it. For example, the Malta Gaming Authority sets the presence of a business plan as one of the main conditions for obtaining a permit.
- A plan helps to form a budget and take a sober look at upcoming expenses. Without this document, it is difficult to adhere to the established amounts, and you can simply go broke without ever launching the project.
- A business plan can help convince investors in the potential success and profitability of your online gaming business and, thus, raise capital. These funds can become an important component of the company’s budget and allow it to reach new heights.
- When writing a business plan, a detailed analysis of the market, competitors and target audience should be carried out. Such research allows you to form the main objectives, principles and values of the company and strictly follow them.
What does an iGaming business plan consist of?
Business plans for different projects can vary greatly in scope. However, there is some basic information that they all should contain. Let’s name the most important sections that need to be included in the document.
- Basic provisions
Here you need to specify your gambling business ideas, goals and structure, as well as to describe the market needs that the project is intended to cover.
- Management and the entity form
In this section, you need to provide information about the form of the legal entity, its founders, stakeholders and key persons. It will also be useful to indicate the expected number of future employees of the company.
- Market and competitor analysis
This section is one of the most important for potential investors. Here, you need to outline what industry niche your project will occupy, as well as what the demand for your services and the portrait of your target audience are. In addition, it would be a good idea to identify your main competitors and analyze their business, as well as explain why customers will choose you.
- Business launch algorithm
This chapter of the document is a step-by-step plan for launching a gambling project. It usually includes steps such as registering a company, purchasing software and gaming content, developing a website, obtaining a license, opening corporate bank accounts, hiring staff, and so on. It is also useful to add projected costs for all these tasks.
- Marketing strategy
Write down a complete list of your services (games) with their merits, as well as indicate the alleged places and ways of promotion of your platform.
- Financial plan
This section should include an answer to the question of how and when your project will begin to make a profit. A financial forecast is required for at least three years. By reading this part of the plan, investors will be able to understand whether the company is worth doing business with.
Be as honest and accurate as possible. It is important to consider all channels of income and expenses to present the most complete picture. By the way, it is customary to describe three scenarios – pessimistic, realistic and optimistic.
How can LicensingAid help you?
Our team can help you create a professional and detailed gambling business plan. Feel free to contact us if you have any questions or need assistance with this or other issues.
Our services:
- License acquisition;
- Opening a bank/merchant account;
- AML compliance;
- Design and trademarks consultancy.
Don’t hesitate to write to us and start the journey to opening a virtual casino hand in hand with the LicensingAid experts.
