Pros and Cons of Investments in Online Casino Business Overseas

online gambling

There are several misconceptions and stereotypes about online gambling Singapore which has scared investors away from investing in the casino business. 

We spoke to various thought leaders within the online casino Singapore market to uncover the facts and fiction about online casino investment. 

According to CasinoHEX SG experts, the online casino in Singapore business is a viable investment and could be a good business if you know the right way to go about it.

This post will teach you the pros and cons of investing in online casinos. Our research was insightful, and we have turned the salient points into this blog. Let’s dive in! 

4 Benefits of Investing in Online Casino Business 

The following are some of the pros of investment in online casinos in Singapore: 

1. Huge return on investment 

Online gambling is one of the businesses that keep flourishing despite the current global economic downturn. 

According to iGaming Business, the US gambling space recorded a solid start for the year, with revenue reaching $14.31billion, which is a 29% year-on-year increase. 

This is not the first time online gambling thrived where other businesses failed. 

In the heat of the pandemic, the global gambling business was one of the businesses that posted a positive ROI. 

Of course, as a good investor, you also want to consider the future forecast of online casino revenue before investing. Look no further than this report by GlobeNewswire, which anticipate that the online gambling market will achieve $172billion in revenue by 2030

The present and future forecast of online gambling revenue show that it’s a good investment that can thrive now and in the near future and in different economic climates. 

Therefore, you will not be disappointed if you want to invest in online casinos in Singapore to make a profit. 

 

2. Multiple Ways to Generate Revenue 

Online casino revenue is not tied to one source. 

Imagine how profitable a casino business that hosts many games such as bingo, roulettes, poker, blackjack, baccarat, and live dealers can make. The house can make around 3% to 15% profit on slots depending on the game RTP. And that is just a very small fraction of revenue a casino business can make when all the income streams are explored.

As a casino operator, you can also diversify into sports betting, racebooks, and eSports which are major revenue drivers. 

Thus, there are many ways to generate revenues from online casinos, provided you understand players’ desires and can meet their expectations. 

3. Online Casino Business is Scalable 

The online casino business has an extended bandwidth making it possible to reach an unlimited number of players. 

This makes it easy to scale the casino business and expand into new markets like Singapore. 

Owing to your solid reputation, players can trust you with their hard-earned money and play real money games on your platform. 

This is interesting because you don’t need much expense to enter new markets. The only new cost incurred is the marketing budget, and you get to pocket lots of profit. 

4. Low Entry Barrier and Financing 

There are various reputable consulting firms and aggregators to walk you through how to invest in a foreign business or build a new platform. 

Therefore, whether you are new to online casinos or have some skin in the game, you can be sure that getting the right help to kickstart your investment journey is easy. 

Additionally, starting an online casino business is not capital intensive. Once you have a website, license, games, and customer support, you’re good to launch. Again, some aggregators handle those services, and you must hire the right firm. 

3 Disadvantages of Online Casino Investment 

Some of the reservations about investing in the online casino business are: 

1. Heavy Competition

There are many operators in the Asian market. Therefore, if you want to invest in or launch new SG casino sites, you must compete with other brands for a fair audience share and market revenue. 

2. Unfavourable Regulatory Landscape 

Online casinos are illegal in Singapore, the Philippines, Malaysia, and many Asian countries. And operators must pay considerable taxes in the few countries that legalize online casinos.

Thus, you need a proper understanding of the Asian gambling market and deal with harsh regulations if you are considering launching an online casino business in Singapore.  

3. Security Threat

Cyber theft and impersonation are significant headaches for online casinos. Therefore, operators must invest in encryption techniques, reCaptcha, and other security features to protect players’ funds and data. 

While at that, they must keep an eye out for fake operators that use their brand name and logo to perpetrate fraud. 

Wrapping Up 

Most of the concerns about investing in online gambling in Singapore are manageable. The online gambling business has potential risks and benefits. However, many experts agree that the downside of investing in online casinos in Singapore is less than the upsides. 

Ensure you partner with trusted aggregators and reputable developers and adopt good marketing strategies to profit from your casino business.