What are the main pain points of operating a casino?

[mashed]

I know it has been discussed several times, where people consider venturing into the operation side instead of the affiliate, and it's, of course, much harder than it seems.
What are the main challenges from an operating perspective? Most AMs I have dealt with seem not to be the brightest, so I assume there are some geniuses in the background doing the magical operation of the casino?

Legal and billing = Solved with crypto?
Onboarding game providers = PITA
Get FTDs = Easy depending on SEO/Mediabuying skills
Customer support = Easy.

What are the missing parts of this setup?

 

[Jetman]

One missing part is probably the fact that you need a huge bankroll beforehand. Because you can have a few whales that start breaking the bank when you start your operation. I think this is where a lot of new casinos could get into trouble.

 

[AussieDave]

I think this is where a lot of new casinos could get into trouble.

A lot of new casinos are white labels, and lot seem to have limited startup funds. I recall VideoSlots.com back in 2011/2012 using FU clauses to renege (steal) players winnings. That's not withstanding weekly/monthly withdrawal limits, which frankly are BS.

If you can't payout the win immediately, don't accept the bet!

However a lot of these white labels, seem to gamble on gaining their ongoing operational bankroll, by player loses. Which, as @Jetman states, all it needs is a few whales breaking the bank, and your fucked!

@mashed - Back in the early days (2001 and 2003) I ran a couple white-label casinos. Although it was the early days, the number of scammers, bonus whores and charge-backs became a daily nightmare to manage. In the end, and given all the drama, I decided best to return back to being an affiliate.

 

[mashed]

@mashed - Back in the early days (2001 and 2003) I ran a couple white-label casinos. Although it was the early days, the number of scammers, bonus whores and charge-backs became a daily nightmare to manage. In the end, and given all the drama, I decided best to return back to being an affiliate.

I can relate to this, I also dealt with staying under CB thresholds while operating subscription sites for many years.
I'm not sure how this works for gambling, though, as the amounts are so much bigger.
But most of these issues could be solved via crypto if it is getting broadly adopted. It would open up operational security challenges though.

 

[AlexanderGross]

I can relate to this, I also dealt with staying under CB thresholds while operating subscription sites for many years.
I'm not sure how this works for gambling, though, as the amounts are so much bigger.
But most of these issues could be solved via crypto if it is getting broadly adopted. It would open up operational security challenges though.

many brands are using already crypto indeed but it´s still a rare option for the most players to use and also for companies is it still not clear how to process with all accounting, tax and so one, therefore crypto is mostly the best solution for non regulated brands

 

[preditor]

The main point of operating a casino must is to get rich

I also managed a whitelabel back in the old good days, but the whitelabel provider got greed and made a win-win to win-loose situation, where they started overcharging me bonus - costs for the players but luckely I got out of the deal we had and I cud close down without any bigger issues.

Greed kills businesses.

I went a bit offtopic here, sorry bro!

 

[eenzoo]

Crypto or Fiat ... big wins are big wins. But yeah, one more BS brand doesnt move the scale ...
Hide your tiny withdrawal limits as good as possible to avoid to scare potential players and hope for the best :-D
Videoslots.com is a great example ... grown to one of the biggest brands out there.
And honestly, better cheat the players but the affiliates.
Affiliate = Traffic = Money = Money buys reputation all day long

 

[mashed]

Sorry guys, i missed these comments from you, I appreciate them! Very interesting to get your perspectives.
I asked for a few WL quotes from companies like SoftSwiss/SkillOnNet etc. Their maintenance cost are crazy, it seems like they care less about the actually success of the brand compared to their fixed delicious fees!