Starting A Casino Business can be a profitable endeavor, but you need proper planning before you get started. With planning, foresight, and hard work your business can be a success.
Before you jump in, here is everything you need to know
Tips for Successfully Starting A Casino Business
1. Choose your Casino’s Name
The very first step is to decide on the name to starting a casino business This name will become your brand and will last for the entire lifetime of your business, so make sure to choose a unique and memorable name.
The name should be simple enough to remember, but also be meaningful so people can connect it to the casino industry. Also, keep marketing in mind, and make sure the name (and domain name if you are building a website) is available.
2. Decide on the Type of Casino
Next, you need to decide which type of casino you want to start. There are six main types of casinos:
- Casino resorts: These businesses are linked to either a resort or a hotel, and include other amenities like restaurants, spas, and retail.
- Land-based casinos: These are stand-alone casinos that are not linked to hotels or resorts.
- Online casinos: This casino is entirely online, offering players convenience and accessibility. Some of the best offshore casinos offer a wider range of games than physical establishments, and accept different currencies, drawing players from across the world.
- Sportsbooks: These sports betting websites allow bettors to wager on sporting events like horse races, baseball, and the NFL.
- Riverboat casinos: More of a niche business, this casino is commonly hosted on a paddleboat, often in tourist destinations.
- Mobile casinos: These are smartphone applications that offer mobile users the opportunity to play casino games on their devices.
3. Develop a Business Plan
A business plan is crucial for any new business. By developing a business plan you will understand the market and create a business strategy for the future.
Your business plan should include:
- Company overview: An overview of the type of casino you wish to start.
- Market analysis: Here you will detail information on the gambling market, customers, and your potential competitors.
- Marketing: How you will market your product and how you plan to attract clientele.
- Operations: The processes required to operate the casino on a day-to-day basis. Here you should also detail your staffing requirements and the milestones you wish to reach (and by when).
- Management: Who the management team is.
- Financial plan: Explain where funding comes from, what startup costs are, how revenue will be generated, projected expenses and income, and how to raise funds.
4. Choose your Business’ Legal Structure
You need to determine what the legal structure for your casino will be so you can register it. It is best to seek legal counsel to decide which structure would be best for your business.
These are the five legal structures commonly used for casino businesses:
1. Sole proprietor
The casino owner and the casino business are viewed as the same legal entity. The owner is responsible for all debt repayments and business obligations. This structure is inexpensive and easy to set up. The main downside is that the owner will be held liable if the casino can’t repay any debts accrued.
2. Limited Liability Company (LLC)
An LLC offers limited liability to the business owners. The owners are not responsible for the business debts and obligations. The main advantages include no personal liability for the business owners as well as flexible management. The downside is that the owners face self-employment taxes.
3. Partnership
This is a popular option for a small business. It is applicable if two or more partners wish to start a casino business. All the partners share in the losses and profits of the casino. A partnership is easy to establish, but the disadvantage is that all partners are liable for losses or debts, and disagreements between partners can arise which can be tough to navigate.
4. C Corp
A C Corporation views the business entity as separate from the owners. The business can have shareholders and has its own tax identity. Business owners are not personally liable for debts or other liabilities, however, a C Corporation is subject to double taxation – the business pays tax on profits and the shareholders pay tax on dividends.
5. S Corp
An S Corporation allows business owners to pass business income through personal income tax returns, meaning there’s no double taxation. S Corporations have a limit on how many shareholders they can have.
5. Register your Business for Tax
You will have to register your business for tax purposes. In the US, you will have to register with the Internal Revenue Service (IRS) so you can get an Employer Identification Number (EIN).
You can then use your EIN to open a business bank account and hire employees (for payroll tax requirements).
If you’re a sole proprietor, you don’t need an EIN and can instead use your social security number for tax identification.
6. Get Business Licenses And Required Permits
You will require several licenses or permits to operate a casino, depending on where you wish to be based.
Generally, you will require the following:
- License from gaming/gambling commission: You’ll have to obtain a license from your local gambling commission so you can operate your casino lawfully.
- Business license: You may have to obtain a business license from your local city or county to operate within their jurisdiction.
- Tax permit: Obtain this permit to pay and collect taxes on your casino’s income.
If you plan on starting a brick-and-mortar casino, you will also need zoning approval, local fire department approval, and permits that confirm safe food processing and prep.
7. Buy Casino Equipment (for Land-Based Casinos)
If you plan to start a land-based casino, you will need casino equipment in terms of table games and slots. You will also need to purchase, build, or lease the property where you wish to be based.
Some casino equipment you might require (which you can outright purchase or lease) include:
- Slot machines
- Gaming tables (like poker, blackjack, and baccarat)
- CCTV cameras and other security features
- Cash registers and card machines
- Decor
- Staff uniforms
- Software for daily operations: This includes casino management software for games, marketing tools, financial reporting, and tracking players.
8. Open Your Casino
With all the above steps in place, you should be ready to starting a casino business. Before opening, make sure to create some hype by leveraging social media marketing and contacting the local press to write about your launch.
Final Thoughts
Starting a casino business can be really exciting, but it is no small undertaking. It requires substantial upfront investment, a lot of patience, and the right business know-how.
By following the steps outlined above, you will simplify the process and get your successful starting a casino business up and running in no time.
