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Online gambling is a lucrative industry and is still rapidly growing in Europe and continental Asia. By the year 2010, the online gambling industry is expected to earn a whopping $16 billion in revenues and $150 billion by 2015.
Only until recently did modest entrepreneurs have a chance of taking up a piece of this mercenary industry. Back then, the primary obstacles were the huge capital investments, the licenses and the bureaucratic legal process. Via internet, these obstacles were eliminated, today anyone can own and promote his very own online poker room business and finally grab the revenues linked in online gambling.
To own an online gambling room, an entrepreneur can choose from these three directions.
- The High-Ticket. The biggest requirement when taking this road is capital, since starting up this way can cost millions of US dollars. The entrepreneur will basically start from designing, then developing the gambling software, and then obtain the gaming license to run and legitimize his online gaming business. Although the cost is obviously high, he will have full control of his online gambling room; in addition to this, he will not owe the online gaming software development any royalty fees - so basically all revenues are his to enjoy.
- Just Right - Instead of making the entire enchilada from scratch, why not visit the nearest Mexican restaurant and buy one. This is the same logic when an entrepreneur doesn't have millions of US dollars to jump-start his very own online poker room. For a capital outlay of $30,000 to $ 350,000, you can become a licensee of an online gambling software developer. This is a popular option since it is far more affordable. From the licensing fee, marketing cost is usually included, you'll receive all the gambling software and sometimes even the necessary equipments, also the merchant account providers are set up for a turnkey business. In most cases, royalty fees (percentage of the monthly gross profit) are paid to the gambling software provider.
- A Bargain - If becoming a licensee has reduced the millions of dollars to $350,000, then becoming a sub-licensee of an existing licensee is the cheapest way to start your online gambling business. The cost can vary from $5,000 to $60,000. While the cost of setting up the business has been greatly reduced, the percentage of the income a sub-licensee receives is lesser, plus he will need to spend on marketing as well.
To legally operate online gambling businesses, gambling operators turn to countries wherein operations for this type of businesses are legal. The online gambling rooms are registered as offshore gambling company, and in return, the respective countries gain significant licensing fees and tax-generated revenues.
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