Both old-style casinos, with gaming tables and cards, and online casinos like https://www.financials2017.com/, which require much less investment, are very profitable businesses. Big winnings are tempting for gamblers, but they rarely happen – whereas casinos win almost all the time. Unfortunately, regardless of the way the business is run, setting up a legal casino involves a lot of paperwork that needs to be done. Is it worth the effort?
Land-based casino
- Documents required to set up a casino
The requirements necessary to establish a casino are defined in the Gambling Act. Not everyone can become the owner of such a form of business – a number of conditions must be met. Therefore, it is worth making a business plan first, which will take into account all costs, including the most minor ones, such as benefits for employees – such as group health insurance.
- Concession
The creation of a casino is associated with the need to obtain a concession. The issuance of a license is possible after a number of conditions are met. The main of them is the company’s authorized capital, which may not be less than 100 thousand dollars, and documentary evidence of the legal source of funds. In addition, not only must be in the country’s territory at least one branch of the company, but all shareholders must be citizens of the party where they are located or citizens of one of the countries of the Union or the free trade association. In addition, they must be persons who are not being prosecuted for crimes because they pose a threat to the security and economic interests of the state. New casino sites not on GameStop require exactly the same documents. Cooperation with the self-restriction system is more loyal to the choice of partners, but licensing is an important factor.
An application for a license must include a number of attachments, such as
- A copy of the company’s notarial deed,
- an extract from the National Court Register,
- identification of shareholders and their shares, the company’s board of auditors
- information on the financial situation,
- a description of the location of the casino and a plan of the building
- A copy of the documents granting the right to use the building,
- anticipated start date of operations, and
- information on the games played in the casino,
- information on the number of employed persons and their planned workplaces,
- rules for the accounting of gambling revenues,
- a description of the investment and expected profits.
The organization applying for a concession must also not be in arrears in the payment of taxes or social and health insurance contributions.
- Place of work casino
Not everywhere you can open a casino – the law also imposes certain restrictions in this regard. The city in which it will be located must have up to 250,000 inhabitants. If it is larger – more casinos can be opened there (one for every 250,000 inhabitants), but there can be no more than one for every 650,000 inhabitants in the state. If there are more people who want to open such an activity, the Minister of Finance holds a tender.
- Budget
For a casino to work, players must receive winnings. Therefore, the casino must have the funds to pay them out immediately. This requires capital for immediate withdrawal. Therefore, before applying for a license, the Minister of Finance must be informed of the number of funds set aside for this purpose. In addition, every game that will be available in the casino must be specified and described – rules and regulations must also be submitted before applying for a license. You must wait approximately six months from the time you file for approval of the gambling regulations.
- Taxes
The gambling tax that a casino must pay is relatively high – higher than for other activities. He is required to keep very accurate records of income, including turnover of chips and tips. Depending on the organized game, the amount of tax varies:
- Fantasy bingo and lotteries – 10%
- drawing-based games – 20%
- Bingo games for money and poker in the form of a tournament – 25%
- Slot machines, cylinder games, dice, and card games – 50%
Online casino
An alternative to setting up a casino that allows you to make big profits from gambling, but does not require such a large financial outlay, is an online casino. Some of the formalities are similar, but doing business online allows you to take advantage of many simplifications. Nevertheless, it is worth following the right sequence of steps to avoid unpleasant surprises:
- Business Plan
As with any other business, you should start by writing down your ideas, calculating the necessary costs and projected profits, and making an accurate list of the games you want to see in the casino. This is the only way to get a rough estimate of the cost of your venture. It’s also worth considering the time you need to spend on each step, so you know when the business can really start making a profit. At this stage, you should also check which country is the best to register your business in – it should be legal and taxed as little as possible.
- Software
The most important element in running this type of business is choosing the right software. It’s what determines whether players will want to visit your site – its possibly low bounce rate and simple, intuitive controls, as well as a suitable design. There are many casino software providers on the market, and you should consider price when choosing, but it can’t be the only criterion. Remember that functionality and interface largely determine whether you will have customers or not.
- Payments
In any online business, one of the most important issues is to get the payment issue right. Players must first and foremost payout winnings efficiently, as well as buy virtual chips. The more methods you make available – the wider audience you can count on. In addition to the most popular payments via bank transfer or credit card, it’s worth expanding the offer to increasingly popular but still niche methods like Neteller.
Conclusion
Casino business is definitely a very tempting and lucrative idea, but there are many difficult hurdles along the way. But nothing in this world is ever easy. So if you have decided to open a casino, go for it!
