If you want to get an idea of how lucrative running a casino can be, all you have to do is take a trip to Las Vegas and see all of the beautifully lit, enormous and breathtaking casinos that line the strip. Of course, running a casino costs lots of money if you plan to do it brick-and-mortar style. That’s especially true if you want to follow the gambling laws outlined by the federal government of the United States of America.
Launching a Bitcoin gambling site is a little bit easier. After all, you don’t have to worry about building a brick-and-mortar casino that rivals Caesar’s Palace or The MGM Grand. Still, there are seven key things you’re going to have to consider if you plan to launch your own Bitcoin gambling sites someday.
Location, Location, Location
It’s natural to think that location doesn’t matter much if all you’re doing is building a website. It’s not like you have to depend on foot traffic. But location does matter when it comes to running an online gambling operation, even if you are planning to except nothing but cryptocurrency. Registering your business in a jurisdiction that favors both gambling and cryptocurrency can make a huge difference in guaranteeing that your crypto gambling site becomes profitable and stays that way for the long term.
Curacao was one of the first countries ever to issue gambling licenses and they are very friendly to gambling operations that use cryptocurrencies. Malta was one of the first countries to legalize cryptocurrency in general and has always been friendly to gambling. Kahnawake is a native territory located in Québec, Canada that’s great for gambling businesses looking to expand their client base and offers fairly favorable tax regulations. This brings us to our next consideration.
Getting the Proper Licensing
You need to explain that you plan to accept cryptocurrency payments for your gambling site and apply for a license through an official application process. You essentially have to explain that you plan to be compliant. Licensing and regulation is, of course, vastly different around the globe so you’ll have to spend a significant amount of time researching your local laws.
Incorporating a Bitcon gambling business it is relatively easy and quick to carry out. That said you need to design a website and an app, hire a marketing staff, open an office and broker deals with third-party payment providers that will make it easy for gamblers to build their bankrolls with you. This can all take a long time.
Understanding Tax Rules
In the early days of Bitcoin, the popular opinion was that it was for criminals and those looking to evade taxes. Nowadays if you’re looking to run in aboveboard business, you’re going to pay taxes, even in the most favorable jurisdictions. Make sure your clear on what the tax rules are in whatever jurisdiction you choose to do business with. If you play your cards right or can offer to stimulate the local economy with your operation, you may get lucky enough to not have to pay certain taxes at all.
Having a Robust Marketing Plan
Whether your new gambling venture accepts cryptocurrency or not, the bottom line is it’s a competitive space. If you’re going to compete with the big boys, you need to be able to offer promotions that are unique and key players coming back for more. Many operators offer 100% as a bonus on top of an initial deposit, some offer changes to play again after you lose and others offer VIP services. Marketing is a big part of winning over customers. Advertising Bitcoin gambling sites online is also difficult because most major advertisers like Facebook and Google don’t allow gambling ads, so you’ve got to have a team committed to the cause.
Following laws in ensuring that you can benefit from the best possible tax regulations is key to running a successful bitcoin gambling operation, but there is more to compliance than just that. You have to be able to identify the source of funds and in many jurisdictions still be able to perform Know Your Client verification. You also have to have blockchain experts on staff in case something goes wrong and a customer asks for help completing the transaction. This all takes significant capital to establish.
You’ve already settled on accepting cryptocurrencies and you’re probably cool with accepting Bitcoin and Ethereum, but what other cryptocurrencies will you accept? If you can jump on the next trending crypto, you might gain access to a new group of gamblers before anybody else does, so this is an important consideration.
Evaluating each of these seven criteria and trying to establish your own bitcoin gambling site might help take your business to the moon as the price of bitcoin itself continues to do just that.