If you’re thinking about starting your own online casino or sportsbook, you’re not alone. The iGaming industry is booming, turning from a niche market into a global financial powerhouse.

Why now?

The demand for online gambling is growing at an incredible speed. According to forecasts, the global online gambling market will reach $153.57 billion by 2030. This means there’s a unique opportunity for anyone who is ready to act and claim their spot.

This growth is backed by clear facts and numbers. Sports betting makes up over 50% of the industry’s total revenue. Europe remains the largest market, generating over 40% of the world’s revenue.

Launching an iGaming business is your chance to build a scalable company that will be profitable for years. But how do you avoid mistakes and build everything correctly from scratch?

This guide will walk you through every critical step—from developing a business model and business plan, to getting a gambling license to attracting your first players and managing daily operations. 

We’ll show you how to turn an idea into a successful and profitable business.

Step 1: Define Your iGaming Business Model

The foundation of a successful iGaming business isn’t just having the best marketing team, although that’s certainly crucial. True success is determined even before product development begins; it’s decided when you define the business model for your future venture.

Defining your business model is far more than just filling out a document; it’s a strategic process that will shape your entire enterprise. This single strategic decision impacts everything from licensing and finances to marketing and product development.

Before you invest your time and money, you need to precisely define what you’re going to offer: sportsbooks, an online casino, a poker room, a lottery, or even bingo. Each of these categories requires a unique approach and specific software.

Beyond choosing your vertical, you also need to decide if you’re going to create a monoproduct, for example, just a sportsbook, or an aggregator that combines games from multiple providers with sports betting.

The most important thing to figure out is: how will your business make money?

Your business model choice also dictates who your business will be targeting.

• B2C (Business-to-Consumer): In this model, you work directly with the end-user—the players. You are responsible for all marketing, customer acquisition, and retention. Your income is directly tied to player activity.
• B2B (Business-to-Business): Here, you provide services to other companies. For example, you might develop and sell software, games, payment systems, or white-label platforms to B2C operators. Your clients will be other iGaming companies.

A successful business model needs a clear plan for generating profit. The main revenue models include:

• House Edge: This is the most common way for casinos to make money. It’s the statistical advantage the casino has over players in every game.
• Rake: This is the main source of income for poker rooms. It’s a small percentage taken from each pot.
• Commissions and Licensing Fees: B2B companies often earn money by charging a fee for using their software or for each transaction, for example, for every spin on a slot machine.
• Affiliate Programs: Affiliate marketing is very popular but isn’t allowed in all jurisdictions. Essentially, you pay a commission to partners for every new player they bring in.

Starting an online gambling business without thorough market research is like building a house with a bomb in the foundation; it’s highly likely to collapse. 

The operators who profit are the ones who know what they’re offering and to whom. They have studied the demographics, gaming preferences, payment habits, and cultural characteristics of their specific audience.

Offering soccer and tennis to players in India when they prefer cricket and fantasy sports is a fatal mistake. Local players will see this as a red flag, a sign that you’re unreliable.

Once you’ve studied the players, research your competitors. Analyze their strengths and weaknesses, what they do well, and where they have gaps. This will help you find your unique niche and offer something special that makes you stand out from the rest.

Step 2: Choose the Right Jurisdiction and Licensing

The next step is probably the most crucial one: picking the right jurisdiction and getting your license.

Don’t listen to inexperienced operators: a license isn’t just a formality. This “piece of paper” proves you’re a legitimate business. This means you have the legal right to operate in markets like Sweden, France, Malta, or wherever you plan to launch.

Having a license gives you credibility and a strong reputation, and it’s what lets you partner with payment systems and game providers.

A license is your passport into the iGaming world. Without one, you won’t be able to:

• Open a merchant account: Banks simply won’t work with illegal businesses.
• Form partnerships: Leading game developers and B2B providers only collaborate with licensed operators to protect their own reputations.
• Protect your business: You’ll be vulnerable to fines, criminal prosecution, and having your site blocked.

The jurisdiction you choose depends on your business model, budget, target market, and your willingness to comply with regulatory requirements. 

At MGL, we don’t offer a one-size-fits-all solution; we take an individual approach because what’s good for one business could be disastrous for another.

Getting a license is just the first step. After that, you must strictly follow all the regulator’s rules, especially for AML (Anti-Money Laundering) and KYC (Know Your Customer).

• KYC: This means verifying every player’s identity by checking their documents, age, and address. The goal is to keep minors from gambling and protect other players from fraud.
• AML: This involves constantly tracking transactions to spot suspicious activity, like large deposits or unusual betting patterns, and sending timely reports to the regulator.

If a company doesn’t meet these requirements, the regulator will most likely issue a large fine and might even take away their license. When that happens, the entire iGaming community will hear about it, and the company’s reputation will be damaged.

Even though a license clearly protects a business in the long run, many operators still choose to work without one or in “gray” markets.

We have to warn you: This is an extremely risky strategy that could cost you your entire business.

Jurisdictions will block your site, issue huge fines, and even start criminal investigations. Without a license, an operator is limited in how they can handle payments. As a result, they often use illegal methods, which puts them face-to-face with fraudsters and leads to financial losses.

A business without a license can’t last long. No one wants to work with it, not players, and not B2B providers. In a highly competitive market, not having a license is a clear warning sign that will drive away both customers and partners.

Step 3: Select iGaming Software and Platform Provider

Once you’ve decided on your business model and picked a jurisdiction, the next key step is choosing a technology partner.

Your tech partner is the foundation your entire business will be built on. They’re responsible for the platform’s stability, security, how quickly you can launch, and whether the platform can handle more traffic and new games without crashing.

There are three types of platforms:

White-label solution: This is a ready-to-go platform that comes with a license, a set of games, PSPs, and operational support from the provider. A white-label solution is much cheaper than building a custom one and lets you launch in just a few months. On the flip side, the operator will have to pay up to 30% of their revenue each month.

Turnkey solution: This is a ready-made but flexible platform. The operator is responsible for getting the license and connecting games and PSPs. Think of it as buying the foundation and building your own house on top of it, with all profits and responsibility belonging to the operator. Turnkey is more expensive than white-label but still cheaper than a custom-built platform.

Custom-Built: This is the most expensive platform, which the operator builds from scratch. The operator gets total control over their unique product but also has to deal with huge financial costs. It’s also a long process that can take months or even years.

A modern online gambling platform is a complex system. Make sure your provider offers:

• A wide range of games from top providers.
• A flexible bonus engine to create and manage promotions and bonuses that attract and keep players.
• CMS/CRM tools for effective marketing, audience segmentation, and player communication.
• Integration with various payment systems.
• Analytics tools to track player behavior, ROI, and other key metrics.
• Fraud protection against dishonest players and cyberattacks.

A good provider offers a scalable product that can easily integrate new content, payment systems, and marketing tools as you grow.

At MGL, we recommend that you look into a B2B provider’s reputation, test their platform in a demo, find out what kind of technical support and training they offer, and compare prices and services on the market. Don’t agree to deals that seem too cheap; they often hide extra fees.

If you’re unsure, reach out to us at MGL. We work with reliable B2B providers who have an excellent reputation in the market.

Step 4: Integrate Payment Solutions and Ensure Security

Once you have a product, it’s time to integrate payment solutions.

Today’s users expect convenience and flexibility. If your payment options are limited, players will be turned away.

They want to see the card, e-wallet, or even cryptocurrency they use every day. The last thing a user wants to do at an online casino or sportsbook is figure out how to pay—they’re there for the thrill.

When it comes to integrating payment gateways, pay attention to local payment systems. To succeed in a specific market, it’s essential to offer local payment solutions. For example, in Germany, you need Giropay; in the Netherlands, you need iDEAL; and in Latvia, you need Swedbank and SEB. Offering Germans Swedbank and SEB, which they’ve never seen, is a game with no chance of winning.

A payment gateway is a technological bridge between your website and the bank that processes payments. That means it needs to be reliable. You can tell if it’s reliable in two ways: it has tools to spot suspicious transactions, and it works to reduce chargebacks and the losses that come with them.

As for security, it’s built on three pillars for a safe iGaming environment: KYC and AML, which we’ve already covered, and Responsible Gambling.

The last pillar is a key requirement from regulators and a sign of an ethical business. This includes tools that let players set limits on deposits and playtime, as well as an option for self-exclusion.

Beyond that, the operator also needs to follow PCI DSS standards to protect users' personal and payment data.

The PCI DSS, or Payment Card Industry Data Security Standard, comes into play if you accept credit or debit card payments. This standard sets strict rules for protecting cardholder data.

No matter where you operate, you also have to follow data protection laws like Europe’s GDPR. This means you’ll need to store data securely, get permission to use it, and have a clear privacy policy.

Step 5: Build Your Brand and Prepare for Launch

Now that the technology and legal issues are handled, it’s time to focus on what will make your business recognizable and appealing to players: branding and getting ready to launch.

You need to come up with a name and create a logo that reflects your brand’s essence. Then, you need to develop a visual identity to create a single, recognizable look.

Pay special attention to the user experience (UX). The interface must be easy to use. Navigating the site, finding games, and the process for signing up and depositing money should be as simple as possible so nothing distracts the player from having fun.

Your front-end must also be mobile-ready. This isn’t just a recommendation, it’s a must. Just look at the numbers: In 2024, over 60% of online gamblers placed bets using smartphones and tablets, and the gap between mobile and desktop use continues to grow every year.

The design must be responsive so the site works perfectly on any device. Some operators even choose to launch with a mobile app first.

If you plan to work internationally, take localization seriously. Translate all of the site’s content into the languages of your target markets and be mindful of cultural differences.

For example, some countries prefer bright, bold colors, while others like a calmer palette. Make sure your brand doesn’t contain any images or symbols that could be seen as offensive in certain regions.

Finally, provide customer support in the languages of your main markets. The ability to speak in their native language will build trust and help resolve problems faster.

Once everything is ready, you need to test it.

Make sure all the parts are working correctly, from signing up and depositing money to launching games and withdrawing funds. You should also check how the site performs when a lot of people are using it.

Many operators start with a soft launch. They pick a small group of users (for example, from a single country) and test the platform in a real-world setting.

Step 6: Marketing and Acquisition Strategy

Now that your iGaming product is ready, it’s time to bring in players.

To attract your target audience, you can use several channels:

• SEO (Search Engine Optimization): Optimizing your site for search engines like Google and Bing provides organic traffic for years to come. It’s important to create quality content, such as game reviews, guides, and industry news, that will attract users.
• Paid Ads: This is a fast way to get traffic. Channels include advertising on search networks, social media (like Facebook and Instagram), and specialized iGaming sites.
• Influencers: Working with popular bloggers and streamers helps build trust in your brand and gives you access to their followers.
• Affiliate Networks: This involves working with partners who promote your brand on their sites or through newsletters for a commission. It’s one of the most effective channels because you only pay for actual customers.

Which specific marketing channel you choose is up to you, but combining two or more is much more effective than using just one. Just like with revenue, it’s better to diversify your marketing channels.

Remember, you can’t attract new customers forever. At some point, that pool will run out, and it’s quite expensive. Once you find your first customers, make an effort to keep them.

If you bring in users with welcome bonuses, encourage them to stay on your platform with loyalty programs. For example, this could be a tiered system where players earn points for placing bets, which they can then exchange for bonuses.

There are other retention tools, too, such as reload bonuses for repeat deposits, personal offers, and regular promotions.

Be ready for the fact that marketing is a fast-changing field. Your main guide here is analytics. For your marketing efforts to be successful, you must constantly analyze Cost Per Acquisition (CPA), Cost Per Lead (CPL), Return on Investment (ROI), and other metrics by pulling data from your CRM system. If the numbers are bad, you need to change your strategy on the fly.

Step 7: Legal, Tax, and Operational Considerations

You now have a licensed, working platform, which is great news, but it’s not enough.

Besides the product itself, an iGaming business, like any other, has legal, tax, and operational duties:

Corporate Structure: You need to register a company in your chosen jurisdiction and define its structure, such as an LLC. This affects your taxes and legal responsibilities.

Taxes and Reporting: You have to pay corporate tax, gambling tax, and VAT in all the markets where you operate. Tax authorities may require regular reports on your transactions and profits.

Ongoing Reporting: Licensing is a continuous process. Regulators require regular financial reports, as well as reports on KYC/AML and responsible gambling. This will help you keep your current license and renew it when it expires.

In addition, you’ll need to hire a compliance officer to keep track of changes in the law and conduct internal audits, as well as a skilled customer support team and a strong technical team.

iGaming is a fast-paced industry. The laws are constantly changing; a market can open and close within a month, and you have to be ready for that.

You should monitor all changes, adapt to new rules, and talk with regulators so you’re prepared for future changes. Or, you can hand these tasks off to professionals who have been in the online gambling industry for a long time.

MGL Solutions has been consulting operators in this industry for over four years. We have a whole team that tracks industry and regulator news. We can keep our finger on the pulse for you.

Bottom Line

If you’re looking to start your own iGaming business, we have some bad news: it’s a long and demanding process.

The journey begins long before launch with a reliable business model and careful market research. This foundation determines every step that follows, from choosing a dependable tech partner and getting the right license to creating a memorable brand and launching effective marketing campaigns.

If you start thinking ahead long before you create a product, you’ll build a business that is not just legal but also stable and scalable. 

Don’t chase quick profits; instead, focus on managing risks and building a strong, credible company that can adapt to the fast-changing industry.

The MGL team is ready to help you at every stage of this process.