Are you thinking of investing in the iGaming market and want to know more about how to buy an online casino? Then pay attention to this post, where we will explain everything you need to take into account when acquiring a virtual gambling business. Also, we’ll give you some tips to sell your online casino quickly and profitably if that is your case.
First, let’s talk about why buying a casino can be very attractive: entering the online gaming world through this method allows you to acquire a licence, a domain, a platform populated with players, games, and partners. In short, all the essential elements to start making money straight away (provided you have the necessary knowledge to manage it correctly). However, you must be aware of the risks involved since, as with any complex business, there can be problems related to , money laundering control, responsible gaming, cybersecurity… If this is your first acquisition or you are not familiar with the industry, we recommend that you count on the advice of specialists.
At this point, you may be wondering: where can I find online casinos for sale? The answer is simple: the internet. There are many sites -both specific to the sector and general- dedicated to publishing ads about businesses for sale. Another common option is that the vendor approaches potential buyers directly through their contact network. Finally, you can also count on the services of business brokers or M&A (Mergers and Acquisitions) advisors specialising in the gambling sector. At the end of this post, you will find a list of websites and professionals that may interest you.
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The price of an online casino will depend on several factors:
- Type of business: A turnkey operation with all the legal paperwork, a good reputation and a large player database will be more expensive than a raw platform without a licence.
- Gambling jurisdiction: Operating with a license from the Malta Gambling Commission (MGA), one of the most prestigious and respected in Europe, entails greater security, but also a higher cost than, for example, Curacao.
- Platform and software: The quality of the platform and the number and type of integrated games and providers will also affect the final price, especially if they are top brands such as NetEnt or Playtech.
- Number of games: The more games and variations of roulette, blackjack, slots, poker… the casino has, the more interesting it will be for the players. But each game entails a payment to its developer or aggregator (such as EveryMatrix’s CasinoEngine).
- Partners: Having agreements with known sports betting suppliers (for pre-match and live odds) and with as many payment gateways as possible, will help increase customer acquisition and retention. However, these partnerships involve commercial relationships that must be maintained after the purchase.
- Player base: One of the key aspects for the new owner of the online casino. The higher the number of regular users and visitors, and the better their engagement and loyalty, the easier it will be to monetise them. However, you also have to take into consideration the average basket and the churn rate.
- SEO positioning: It takes time and resources to rank a casino website in the search engines. Therefore, having a domain with good organic traffic will mean more visits and, therefore, more possibilities of conversion.
As you can see, there are many variables to consider before answering the question: how much for an online casino.. That’s why it’s so important to request due diligence before signing any agreement. This process, carried out by specialist consultants, will allow you to know exactly the real situation of the casino, both in its assets and liabilities. Only then will you be able to value if the asking price is fair or not.
In any case, according to information from different sources specialised in iGaming, the price range to buy an online casino in the EU currently ranges between €1 and €4 million. If we talk about a turnkey gambling operation with a Curacao licence, the price could fall to half a million euros or less, although exceptional cases can reach up to €8m or €10m. On the other hand, if we go beyond the European continent, for example, to obtain a gambling permit in Panama, the price would drop to around €250,000.
What should I look out for when buying an online casino?
Once you have found a candidate that fits what you are looking for and requested due diligence, you should pay attention to the following points before completing the purchase:
best casinos in oregon1.- Check the gambling licences
Make sure you know in depth all the licenses of the country or countries in which the online casino operates. You will have to bear in mind the corresponding taxes, fees and compliance with the regulations of each one. Remember that operating without a license is a serious offense, so if the platform has been shut down by the gambling authorities, it is best to abandon the purchase.
2.- Review the gambling software
Request access to the back office of the platform to check the integrations made with game developers and other suppliers. Make sure you have all the reports and certificates of fairness and security required by the regulators. Check that the casino’s CRM system allows you to segment players according to their preferences, behaviour and performance. And verify that the CMS (Content Management System) allows you to easily modify the content and design of the website (within certain limits depending on the template used).
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Study the last accounts, the payment methods available to players and the commissions of the acquirers. Request information about any ongoing litigation, debts or lawsuits involving the current owner. And ask for the contacts of the advertising agencies with which it advertises.
4.- Check the SEO positioning
Ask for the analytics reports of the casino’s website and check its organic positioning for keywords related to your sector. Verify that its domain has not suffered Google penalties and that it has a backlink profile adequate and natural. Find out how its email marketing campaigns work and if it uses push notifications. Finally, analyse its social media strategy and its community management.
5.- Know the competition
Check who are the main competitors of the online casino you want to buy and how it positions itself compared to them. Study their USP (unique selling proposition) and think about how you can improve it. Consider the regulatory changes that are coming in the short and medium term at the European level (such as the Fifth Anti-Money Laundering Directive (AMLD5) or the recent proposal for a pan-European rule on responsible gambling).
How to sell an online casino
If instead of buying an online casino you are interested in selling it, these same recommendations are valid, but in reverse order. Of course, keep in mind that the final price will be based on the expected benefits that the purchaser can obtain from the business. Hence the importance of showing solid revenue figures and a portfolio of quality partners.
big win on slotsTo attract potential buyers, you can also make a detailed presentation of your online casino highlighting its strengths and opportunities for growth. As well as publishing an ad on the specialised portals that we mention below indicating relevant data such as the monthly revenue, visitor traffic and number of depositing players. Never forgetting that the safety and confidentiality of your customers’ personal data is a priority.
Finally, remember that selling an online casino can take longer than you expect, so don’t stop running your day-to-day business while the transaction is being processed.
_Buy an online casino in 2023 is a big decision that requires a lot of reflection and specialized advice. But if you do it right, it can be a profitable and relatively fast way to enter the gambling market. T)**ake for granted that you will have to comply with know your customer (KYC) procedures and ask for the same from the vendor. Once both parties agree on the price, sign the sale agreement and make the payment, you will have to inform the regulator about the change of ownership and transfer the licence.
At EveryMatrix we offer companies interested in buying a casino turnkey solution : Idaho. This is an operative casino ‘shell company’, with all the legal structure set up and ready to trade, but with no operational activity, clients, balances or liabilities. In short, a clean starting point from where you can develop your gambling project with full ownership and without inherit issues or undesired obligations. Contact us to know more!
Sites to buy and sell online casinos
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Is it legal to buy an online casino?
Yes, buying a casino can be legal if you acquire a legitimate business with the appropriate gambling licences. However, running a casino involves regulation and compliance with laws related to money laundering prevention, responsible gambling, advertising standards, and taxation.
Can anyone buy an online casino?
Not everyone can become a casino operator due to the regulatory requirements and suitability checks. Typically, only individuals or corporations with a clean record, sufficient capital, and expertise in the gambling industry are eligible to acquire a licensed online casino.
Best Casino Promotions That Don't Require a Deposit in 2023Where can I buy a turnkey online casino?
You can explore various options such as direct negotiations with existing operators, business brokers, or listing your purchase intent on online marketplaces specializing in buying and selling casinos. Ensure thorough due diligence before making a decision.
What should I consider before purchasing an online casino?
Factors to evaluate include the business's financial health, client base, revenue streams, regulatory compliance, licences held, technical platform capabilities, and any pending legal matters. It's recommended to seek professional advice during the evaluation process.
About the author
Peter Farkas
Peter is a senior ERP and accounting software writer and analyst at Technology Evaluation Centers (TEC). For the past 10 years, he has been following all the latest trends in the field of enterprise software and contributed to several books and Industry Reports.
