The iGaming industry has transformed from a niche entertainment segment into a global digital powerhouse, with online gambling revenues projected to almost double over the next decade. Before you simply search for how to start an online casino and dive in, it is essential to understand that you are entering a tightly regulated, highly competitive business environment.
This article walks through the first practical steps to open an iGaming company, from shaping your business idea to choosing technology partners and preparing for licensing. Rather than focusing only on the technical side, we will look at strategy, compliance, budgeting, and operations – the foundations that separate sustainable brands from short‑lived experiments.
You will learn how to define your target markets, select the right licensing route, build a realistic financial model, and choose the software platform and providers that underpin your future growth. While examples often refer to online casinos, the same principles apply to broader iGaming businesses that combine casino, sports betting, live dealer games, and more.
Step 1: Define Your Vision and Business Model
Decide what kind of iGaming brand you want to build
Start by clarifying what you want your company to be in three to five years. Are you aiming for a niche online casino focused on slots, a sportsbook led by local football and cricket markets, or a full multi‑product iGaming hub? Your long‑term vision will shape almost every subsequent decision, from product mix to licence type.
Key questions to ask:
- Will you focus on casino, sports betting, live casino, or a combination of products?
- Are you targeting one main country, such as South Africa, or several regulated markets?
- Do you want to build a premium, high‑value brand or a mass‑market offering with broader appeal?
Understand where the growth is
Recent industry research shows that the global online gambling market is growing at double‑digit rates, with mobile play and live betting leading the way. Markets across Africa, including South Africa, are expanding rapidly as smartphone adoption and internet connectivity improve. This means there is real potential for new operators – but also rising expectations from regulators and players alike when it comes to product quality, security, and responsible gambling.
By matching your business model to where demand is strongest, you can build a focused value proposition instead of trying to compete with established brands on every front.
Step 2: Map Your Regulatory and Licensing Options
Learn the basics of iGaming regulation
Before you invest in design or development, you need a high‑level understanding of how iGaming is regulated in your target markets. Regulators usually control who may offer online gambling, where servers can be hosted, and which products are permitted. They also set rules for player verification, anti‑money laundering (AML), advertising, and safer gambling.
No article can replace professional legal advice, but you should at least be able to answer:
- Which jurisdictions are you targeting initially?
- Do those jurisdictions require a local licence, or can you operate via a licence from another recognised regulator?
- What are the key technical, financial, and responsible gambling requirements?
Choose a realistic licensing path
Many start‑ups underestimate how demanding a full licence application can be. Regulators typically expect detailed business plans, evidence of funding, fit‑and‑proper checks on owners and key managers, and technical documentation for your platform and games.
Common approaches include:
- Local licensing in your core market – for example, working towards a licence in a specific African or European jurisdiction if your long‑term goal is to be fully locally regulated.
- Licensing in a well‑known international jurisdiction – using a licence from a recognised regulator as a starting point to prove compliance standards and build your brand.
From the outset, build your compliance mindset around player protection and transparency. Research in public health and behavioural science highlights how the intensification of online gambling can increase the risk of gambling‑related harm if not properly managed. Your business model should include robust safer‑gambling tools, clear information for players, and limits that are easy to set and adjust.
Step 3: Build a Realistic Business Plan and Budget
Estimate start‑up and operational costs
An iGaming company can be launched with a lean team, but it is never cheap. Major cost categories include:
- Licensing fees, compliance consultancy, and ongoing regulatory reporting
- Platform and game provider fees, often including set‑up and revenue share
- Payment processing, fraud prevention, and chargeback management
- Marketing, including affiliates, bonuses, sponsorships, and CRM tools
- Staffing for customer support, risk, compliance, and product management
You should model several scenarios (conservative, base, and optimistic) for player acquisition, deposits, and net gaming revenue. This helps you understand how much capital you need to reach break‑even and how sensitive your business is to changes in player behaviour or regulation.
Define your key performance indicators (KPIs)
From day one, decide which metrics you will monitor to judge success. Typical KPIs include:
- Customer acquisition cost (CAC)
- Player lifetime value (LTV)
- Conversion rates from registration to first deposit
- Average revenue per user (ARPU)
- Churn and reactivation rates
A clear performance framework makes it easier to convince investors, demonstrate control to regulators, and optimise your marketing spend over time.
Step 4: Choose the Right Technology and Partners
Decide between building and buying
Few new operators build their own platform from scratch. The more common route is to work with established iGaming technology providers that supply a ready‑made or highly configurable platform, game aggregation, payment integrations, and risk tools.
Options typically include:
- Turnkey or full‑service solutions that provide the platform, games, payments, and back‑office tools in one package.
- Modular solutions where you integrate individual components, such as a casino platform, sportsbook, or game aggregator, around your own front end.
Working with an experienced partner such as SOFTSWISS can shorten your time to market and give you access to a mature ecosystem of games, payment options, and risk‑management tools. It also makes it easier to demonstrate technical compliance to regulators, as many of the core systems are already certified in multiple jurisdictions.
Prioritise security, payments, and data
Players expect fast, seamless, and secure deposits and withdrawals. When choosing a platform and payment partners, ensure that you can:
- Support popular local payment methods (cards, online banking, vouchers, mobile money, e‑wallets)
- Apply strong player verification and AML checks without creating unnecessary friction
- Protect customer data with robust encryption, access controls, and monitoring
Security incidents or payment delays can damage trust quickly, especially in emerging markets where consumers may already be cautious about online transactions.
Step 5: Plan Your Marketing and Player Lifecycle
Choose your acquisition channels carefully
In many markets, affiliates remain one of the most important acquisition channels for iGaming operators, complemented by SEO, paid media, sponsorships, and influencer partnerships. However, advertising rules are tightening in several jurisdictions, particularly around vulnerable audiences.
Design retention and responsible engagement from day one
Retaining players is just as important as acquiring them. Use CRM tools to create personalised journeys with offers, loyalty programmes, and tailored content that encourage long‑term engagement rather than short‑term bonus hunting.
At the same time, embed safer‑gambling features into the user experience: easy‑to‑set limits, self‑exclusion tools, time‑out options, and proactive communication that encourages players to stay in control. This is not only a regulatory requirement in many jurisdictions but also an important differentiator for modern, player‑centric brands.
Turning an iGaming Idea into a Licensed Business
Opening an iGaming company is not just a matter of launching a website and adding games. It is a structured process that starts with defining a clear vision, understanding where the global and local markets are heading, and choosing a realistic regulatory path. From there, you need a robust business plan, sufficient capital, and a technology stack that can meet regulatory expectations and player demands.
The first steps you take – clarifying your business model, mapping your licensing options, budgeting conservatively, and selecting experienced partners – will shape everything that follows. Taking shortcuts at this stage can lead to delays, rejected licence applications, or an operation that struggles to scale beyond its first wave of players.
If you are serious about launching an online casino or broader iGaming brand, treat these early steps as an investment in your future reputation. With solid foundations, your company can grow alongside the expanding global online gambling market and adapt as regulation, technology, and player expectations continue to evolve.
