October 01 0 54

Extendy: What's the real cost of running an online casino?

Many affiliate marketers are considering launching their own online casino and view White Label solutions as the most feasible option. The market offers plenty of platforms to choose from, but few deliver high-quality operational management. This is where many potential operators hesitate.

Taking on operational management isn't something affiliates usually consider; it's akin to starting a new business from scratch, complete with its own intricacies, risks, and hidden challenges.

In this article, we’ll share our insights on the nuances of managing a casino, the main components involved, the number of staff required at launch, and the cost of such a team.

Payment Processing / PSP

This team ensures smooth payment processing from players, from payment gateway integration to resolving issues with deposit transactions.

Part of the team monitors deposit deductions, while another part works 24/7 on the 'front line' - processing all player requests, conducting financial reconciliations. This block is also responsible for ensuring the availability of the required number of payment methods and their correct operation: searching by GEO, signing, testing and integration, routing (switching payment methods), and communication with payment method account managers.

An experienced team will help avoid signing up with unreliable payment providers and prevent future issues with payouts, ensure quick onboarding and annual verification of payment methods, resolve deposit crediting problems promptly, and as a result, avoid extra fees from chargebacks.

The team includes monitoring managers, customer service representatives, business developers, lawyers, account managers, and technical specialists. At launch, you'll need at least five people, costing approximately €9,000 per month depending on location.

Payments, Risk & Fraud

This department conducts Know Your Customer (KYC) checks, regulates payouts, performs necessary verifications, and combats fraud. Automated solutions assist, but daily tasks require human oversight.

Payout checks involve multiple stages. Identifying fraud is detective work – spotting patterns among groups of players requires a special talent, and there are few who possess it. Fraud evolves constantly, demanding ongoing analysis and adjustments. This team also assists with "unstable" clients and prevents various risks, including complaints to licensing authorities.

The department's performance directly impacts potential fraud losses, which can be substantial. We've seen cases where quick action by the team identified and prevented a potential abuse worth hundreds of thousands of dollars.

At launch, with low First Time Deposit volumes, a team of six will cost about €9,000 per month. Finding and training personnel to spot unconventional fraud schemes is especially challenging.

CRM

This team oversees tournaments and gamification, focusing on player retention and upselling. The CRM system’s features may vary. More advanced systems allow for flexible action and bonus sequences, quicker new GEO integration, mission creation for players, and more. However, they require skilled staff to manage activities for different player segments, including VIPs.

Initially, three managers can handle one casino's CRM, but experienced professionals are scarce. Depending on location and expertise, costs could start at around €8,000.

Game Management

This team negotiates with game providers and discusses promotions with gaming studios. They also optimize the casino website's game placement based on GEO – players in different countries prefer different games, and proper prioritization boosts revenue.

These are unique specialists with deep knowledge of games and the market. One manager might suffice at launch, costing roughly €2,000 depending on location.

Content

The content team writes the "player texts": tournament rules, notifications, newsletters, policies on gambling addiction and anti-money laundering, payout guidelines, terms and conditions, and much more.

Discrepancies in public tournament conditions can lead to thousands of support queries. The industry has seen worse consequences - misstated payout limits leading to player complaints and license revocations.

At launch, you might have three team members if catering to several languages, mostly native speakers. The team's monthly cost could be around €5,000.

BI Analytics

One of the most crucial operational blocks, its primary function is to aid the business in making informed decisions. Essential for marketing, VIP management, CRM, anti-fraud measures, payouts, and more, analytics processes vast data sets from multiple sources. This allows other operational units to track key metrics, assess efficiency, and optimize operations.

Some invest more in people, others in software, affecting automation levels without significantly altering total costs. Building an effective analytics department can take up to a year and cost €300,000 annually — covering staff, software, and hardware expenses.

"Ready-made solutions" typically offer access to analytical tools, but someone needs to manage them, which requires a highly skilled operational team. Its size can range from five to twenty employees, depending on tasks and chosen solution. On average, the team's monthly cost, including software and hardware, is around €25,000. At the outset, a team of three will cost roughly €14,000 monthly.

Support

The first point of contact for players, the quality of this department directly influences player retention and loyalty. Properly scripted interactions, case resolution algorithms, and team training are vital.

Agents available 24/7 help with various issues: deposit and withdrawal problems, account verification and settings, tournament, promo, and mission explanations, and bonus mechanics.

For efficient support, the department might have 20 to 70 agents, depending on automation levels and targeted GEOs. Finding enough multilingual staff with suitable experience becomes tricky as GEOs increase. Initially, a team of six will cost around €7,000.

Call Center

Partially overlapping support functions for new player issues, the call center also handles other business-critical tasks. One is reactivation — a well-designed system can achieve return rates of over 20%.

Another task is gathering feedback for product optimization. For instance, enhancing bonuses results in more attractive rewards for players and increased deposits for the casino.

At launch, two employees will cost around €3,000.

VIP Management

Engaging with VIP players is extremely important in casino operations, retaining high-spending clients and boosting company revenues. This team devises VIP management strategies and sets metrics for classifying VIP clients, such as average bet size, play frequency, or deposit amounts.

The principle when working with VIPs is personalized attention and thorough understanding of each player. The team creates exclusive promotions and bonuses based on individual VIP preferences and behavior. Unique bonus calendars are developed for each product the client uses: casino, sports, live.

A VIP manager must empathize with the player, have a strong desire to solve problems, and effectively upsell bonuses, games, and other offerings. They address objections, handle complex cases, and tackle legal issues alongside lawyers and other departments, like Risk & Fraud.

Initially, two managers will cost around €6,000.

Summary

The minimum operational team for launching an online casino comprises 30 people, costing at least €63,000 monthly. This covers only salaries (net) for middle-level staff in CIS countries. International recruitment or hiring industry stars could double these costs.

Extendy offers a white-label solution that provides comprehensive operational management without additional costs for partners. Visit our website and leave a request to discuss potential collaboration and launching your casino brand.

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