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The online gambling market in the Land Down Under has boomed even though only sports betting, horse racing and lottery betting are legal in the country. Namely, this doesn’t prevent players from Australia from creating accounts on offshore casinos, thereby contributing to the growth of the online casino industry.
That said, besides being lucrative for individuals who like to play slots and table games, online gambling platforms also attract businesses, as there is good money to be made by investing in the best Australian online casino sites.
With that in mind, we created a guide in which we’ll share insights into successful online casino business models. In addition to that, we’ve thrown in a few tips to help you get the upper hand if you’re interested in investing in Australian gambling platforms.
Here’s all you need to know about the iGaming industry in Australia from a business perspective.
Analysis of the iGaming Market in Australia
According to the latest data, in 2022, the Australian online gambling market generated $4.5 billion, and it’s expected to grow by 7.9% by the end of 2028, reaching $7.2 billion.
The factors that most contributed to the growth of the iGaming industry in Australia are the digitisation of online casinos, the use of technological advancements, like AI, VR and AR, as well as cloud gaming.
Other things that have fueled the growth of the Australian online gambling market are generous bonus offers and promotions, attractive loyalty programs, and a wide range of casino games that are optimised for both desktop and mobile use.
When it comes to regions, the largest share in the growth was held by:
- Australia Capital Territory and New South Wales
- Victoria and Tasmania
- Queensland
- Northern Territory and South Australia
- Western Australia
We must mention that the interest in AU online casinos has also expanded among well-known software developers, such as Microgaming, NetEnt, Pragmatic Play, and Evolution. Namely, since they started cooperating with AU gaming platforms, you’ll find their popular titles in almost all Australian casinos, along with local developers, such as Ainsworth.
Business Models of Online Casinos – The Big Four
If you want to start investing in online casinos in Australia, you’ll first have to choose a business model. Since each model is different, your choice will depend on your vision and available budget.
The most popular business models incorporate the white label model, turnkey model, proprietary model, and affiliate marketing. Each of these models has its advantages and disadvantages, which is why we’ll analyse them separately so that you can understand how they work and how they differ.
White Label Business Model
The white label business model refers to buying a pre-built gaming site and branding it as your own. This model is suitable for businesses that want to enter the iGaming market with minimal costs. Namely, since they won’t have to worry about design and other technical aspects, businesses will be able to concentrate on other things, such as marketing.
In short, using the white label model is one of the best strategies for making money through online casinos without overspending your budget.
However, white label business models also come with certain disadvantages, such as a lack of customisation and a limited level of control. Another thing that makes this model less attractive to investors is the lack of uniqueness since their main competitors can use the same pre-build design.
Turnkey Business Model
The turnkey model refers to buying a fully developed gaming site from a software developer. The main advantage of this model is that it has all gambling features embedded in it, from casino games to payment gateways and bonus systems.
Unlike white label models, turnkey models allow customisation, which is why they take more time to set up. You should also keep in mind that not all turnkey models come with a gambling license.
In this regard, the turnkey model is ideal for new iGaming investors who want to launch their site as soon as possible without worrying too much about the technicalities.
Some of the best turnkey providers include:
- SoftGamings
- AngelsHub
- SOFTSWISS
- Quantum Gamin
- NuxGame
- Slotegrator
Proprietary Business Model
Proprietary models don’t rely on pre-built designs. Instead, they allow businesses to build their sites from scratch. Online casinos that use this model are unique since operators have control over all segments, from design to bonus offers and games. This model also allows the creating of in-house games and exclusive promotions, which is its biggest advantage.
Keep in mind that the implementation of this model will require a lot of time and money since everything will be built from scratch. You’ll also have to pay for regular maintenance, which can be very expensive.
That said, this business model is suitable for experienced investors who have sufficient resources at their disposal.
Affiliate Marketing
Affiliate marketing refers to promoting online gambling platforms via affiliates. In other words, affiliates will promote online casinos on their sites, and every time someone clicks on their link, they will earn a commission.
In short, affiliates act as intermediaries between players and online gambling sites.
Affiliate marketing is also used by investors who want to partner with established brands that, in exchange for commission, would help them enter the iGaming market.
This business model is ideal for beginners and digital marketing managers since it requires minimal investment.
How to Start Investing in Online Casinos in Australia – Tricks of the Trade
Australia is currently one of the most lucrative countries when it comes to investing in online casinos since gambling in the Land Down Under is socially accepted. In fact, the AU government promotes gambling by offering visa incentives to visitors.
With that in mind, if you want to invest in the iGaming world, you should first create a solid business plan in which you’ll define your budget, work structure, and final goal.
Here’s how to get started.
Analyse the Market
The first thing you need to do is analyse the Australian iGaming market. Find out what trends are currently hot, what players prefer when it comes to casino games, and how your main competitors are doing. After doing a detailed analysis, highlight the opportunities you can capitalise on.
Set a Budget
Investing in online gaming platforms requires a lot of money and time, which is why it’s vital to allocate your budget wisely. In other words, your funding needs to cover employee salaries, marketing costs, and license fees.
Acquire a License
All online casinos must be licensed and regulated by the regulatory body of the jurisdiction in which they operate. Having a license proves that the casino operates legally and complies with all gambling regulations. By licensing your casino, you’ll also confirm that you are a trustworthy operator, that you offer fair games, and that you take the security of your members seriously.
Each jurisdiction has its own regulatory body, which means that you need to apply for a license based on your targeted market.
- New South Wales: Liquor & Gaming NSW
- Victoria: Victorian Commission for Gambling and Liquor Regulation
- Queensland: Office of Liquor and Gaming Regulation
- Western Australia: Department of Racing, Gaming and Liquor
- South Australia: Consumer and Business Services
- Tasmania: Tasmanian Liquor and Gaming Commission
- Australian Capital Territory: ACT Gambling and Racing Commission
- Northern Territory: Licensing NT
Choose A Business Model
The last step is to choose your preferred business model. As mentioned before, you’ll be able to choose between four models – white label, turnkey, proprietary, and affiliate marketing. You should base your choice on the type of casino you want to invest in.
On that note, if you want a pre-designed casino, opt for a white label or turnkey model. Experienced investors who want to have all the control in their hands, from the design to the offer of games and bonuses, should choose the proprietary model, while digital marketing specialists should try affiliate marketing.
Think Outside the Box
Investing in online casinos in Australia can be very profitable if you have a clear vision of what you want. On that note, the first rule is to implement business models that will best suit your vision.
If you are a beginner, go with the white label or turnkey models since they offer pre-designed sites that you’ll be able to modify to suit your needs. If you want to build your brand from scratch, choose the proprietary model. On the other hand, entrepreneurs will profit the most through affiliate marketing.
Furthermore, you should not forget about the research on which you’ll base your final decision. In other words, analyze the targeted market, check your competition, set a budget, and acquire a license.
You should also create a marketing strategy for attracting new players and keeping existing players. This segment includes game providers, customer support, payment methods, and responsible gaming policies.
And finally, it won’t hurt if you partner with other businesses from the iGaming world, through which you’ll be able to advertise your platform.
Author’s Bio:
Lola holds a degree from the University of Tasmania (UTAS), post-graduation, she collaborated with gambling operators to innovate new bonus structures and enhance game features. She has consistently championed responsible gambling as a cornerstone of the affiliate industry. For now, she leads as the Chief Editor at Au Casinos List, setting the gold standard in online gambling journalism. Lola Henderson, an Australian online casino writer, has been in the business of writing about online gambling and casino games for years.