According to estimates by software companies, it will cost about $1,868,000 to launch a licensed platform from a well-known provider. And one of the main expense items is the purchase of software. However, the costs of site owners do not end there, because they still need to pay monthly royalties to providers. What it is, what sums we are talking about, is analyzed in the article.
- What software is necessary for the operation of online casinos
- How much is the software for online casinos
- Conclusion
What software is needed to run an online casino
First, it is necessary to understand the terminology, namely what is meant by “casino software”. To run the site, the operator must purchase three types of software.
| Variety of software | Comments | Popular suppliers | Example of popular software |
|---|---|---|---|
| Gaming platform | This is the foundation of an online casino. It is designed to manage the site, maintain, customize user accounts. | Playtech is the market leader in gambling entertainment. It offers comprehensive solutions for operators. The company has received licenses from the UK and Malta. | Playtech Portal – software for integration of gaming content. It includes all tools for interface customization (login and registration, cross-platform tournaments and promotions, implementation of payment methods and so on). |
| Its success and popularity among players depend on the usability of the interface and functionality of the site | Microgaming is the largest software manufacturer, which started its activity in 1994. Founder of the international agency eCOGRA, specializing in protecting the rights of players. | Microgaming platform, which will be managed by a special team of the provider, provides access to all the content of the manufacturer. It is easy to integrate + each configuration can be customized to the needs of the customer. | |
| Slots | Content can include slots, lotteries, card and table games. Sites with a Live section have an advantage. | NetEnt is the most popular software manufacturer, specializing in creating bright video slots with stunning graphics and non-standard bonuses. It has many licenses (Denmark, Malta, UK, Gibraltar and other international jurisdictions). | Vikings, Gonzo’s Quest, Starburst |
| The machines can be purchased both separately and together with the platform from the manufacturer | Playson is a leading developer that delivers content in 17+ regulated jurisdictions. The portfolio includes over 65 gambling entertainment titles. | Buffalo Power: Hold and Win, Legend of Cleopatra Megaways, Book of Gold Multichance | |
| Payment Solutions | This software has nothing to do with gaming, but is important to the operation of the casino. It refers to programs for conducting monetary transactions. | NETELLER | |
| PayPal | |||
| Click2Pay | |||
| You can connect payment systems independently, separately or conclude an agreement with the provider. Then these services will be included in the package. | Skrill |
According to a study by journalist P. Wilson, 60% of the online casino software market is occupied by three manufacturers: NetEnt, Microgaming and Playtech.
Operators often order a platform with content from one provider and then purchase a few more individual games from other studios. As a rule, it is cheaper, faster and more convenient.Casino created by its own project, with its own set of machines (including custom development) will cost 2-3 times more expensive. In addition, the risk of bugs increases and the probability of hacking will increase.
How much does online casino software cost
The price of software will depend primarily on the class of the provider. The higher it is, the higher the asking price will be.
Provider classes
Depending on the demand and popularity, manufacturers are:
- AAA (Triple A).These are the largest and most popular developers: NetEnt, Microgaming, Playtech, Yggdrasil. These providers bypass competitors in terms of capitalization, as well as the number and speed of release of games. They own the advanced developments – new bonuses, additional symbols and so on. Triple A providers acquire the rights to use popular franchises (“Terminator”, “Game of Thrones”, “Phantom of the Opera”, “Planet of the Apes” and others). As statistics shows, these are the machines that most often attract casino visitors. So it’s not surprising that slots from AAA are usually placed in the lobby of online venues.
- Small studios.Indie developers are often not inferior to the giants of the gambling industry neither in design, nor in game mechanics. However, they lag behind in terms of the speed of creating machines (Microgaming can release a new slot every month, while Thunderkick can’t). Their games are not as popular. They rarely end up in the lobby. In addition, small studios usually produce only machines and do not offer full platforms to operators.
- Private developers.The operator can order his own game (stipulate the plot, mechanics, symbols, bonuses). Such author’s machines make the casino brand more recognizable, which contributes to the influx of new visitors.
Content from AAA providers will be 100% quality. It is famous games, whose names are on the rumor, bring new visitors to the casino. In addition, users have more trust in sites where machines from popular manufacturers are displayed.
So the game collection may include software from indie studios (this is even good, because it introduces variety), but the operator must also purchase islotyot known companies.
Prices for software from different manufacturers
According to Lionel Iruk, general counsel at Empire Global Partners, a premium software package will cost between $100,000 and $500,000. Cheaper options that can be integrated with the site will cost between $10,000 and $50,000. But let’s look at all cases in more detail.
Cost of the “package”
Buying a “package”, i.e. a platform + a set of games (usually from 300 to 450+) from AAA providers will cost in:
- Microgaming- $250,000.
- Playtech- from $200,000 to 300,000.
At the same time, an independent studio Rival Games, which specializes in the development of interactive games, takes from $100,000. Creating a site from scratch on your own project together with a set of software can cost 2-3 times more expensive.
It is also worth considering that a well-known manufacturer will fulfill the order and realize it 100% within 3-4 months. An individual project, as a rule, requires 6 months or more
It is also worth considering that a well-known manufacturer will fulfill the order and realize it 100% within 3-4 months. A customized project usually takes 6 months or more.
The price of software can be reduced or increased depending on the terms of royalty payment. After all, a one-time payment for the purchase is not everything. Every month the institution must transfer to the provider from 5% to 60% of the profit earned in the machines from the manufacturer.
Many online casinos do not buy software, but rent it. Then the amount becomes more manageable and averages from $ 11,000 to $ 12,000 per month + royalties of 10-50%.
The higher the popularity of the manufacturer, the higher the requested percentage of remuneration. For NetEnt in 2020 the rates of 20% for premium machines and 17% for regular ones were relevant, Microgaming – 19%, Play’n GO – 16%. In comparison, BGaming was only asking for 9%.
The price of the machines
It is possible to buy games individually. But this is not particularly profitable: you will have to pay from 200 to 5000 dollars per slot + do not forget about the monthly commission. When buying in bulk, the price will be lower.
Unique slots to order are expensive. Their price is calculated on an individual basis. For example, the American company 2WinPower takes into account how many functions will be in the slot, whether you need 3D-graphics, animation, original bonus levels and so on. The more complex and interesting the machine, the higher the cost.
The advantages of developing your own game are obvious – copyrights, a greater level of control, the ability to create a unique, high-quality slot. But this approach time-consuming and requires large investments.
Payment systems
If the operator buys a “package”, then the software for receiving and sending payments is already included in the package. But such software can also be bought separately.
Approximate prices:
- One payment gateway: about $25 per month, 2.9% + ยข30 per transaction. This is an average cost, but it all depends on the package you choose. In addition, the gambling sector is considered high-risk. Many financial services do not work with it.
- A payment processor for a large casino will cost 20,000-50,000 dollars per month.
Conclusion
The purchase of game content and other software for the casino requires large investments, even if the operator only rents slots. We are talking, of course, only about certified, high-quality software. This is the way of honest operators who want to work in the “white zone”.
Scripted, hacked games bought by hand on the “black market” were not considered in the article. They can be purchased for 100-200 dollars. However, you should not choose for money betting operators who save on the quality of content.