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Online poker is a big business.
It’s difficult to know how much revenue is generated annually because of all the private sites. But Wikipedia says $2.4 billion was generated online in 2004. No doubt it was much higher than that in 2017.
That’s enough to get anyone’s greed glands working. To get you dreaming of what it’d be like to be the owner of a massive and hugely popular online poker site. To make so much money, you could retire young, buy an island and sip cocktails until you’re old and dusty.
Most people stop there. The dream bubble *pops* and they come back to reality.
But, for the few others, they start to seriously contemplate starting an online poker site. They want to know how to get started.
This page is our attempt to help those people out. But first, a disclaimer:
We don’t know what it truly takes to start a new online poker room. We haven’t done it before, and there aren’t any resources on the web that spell it out from A to Z.
But, we do have experience as business owners (affiliates) and poker players. Industry experience, too, as well as a little common sense.
So the following information is our best attempt at explaining the darn-near impossible task of launching your very own online poker site.
Note: We’re not lawyers, business planners, consultants or anything like that. If you truly plan to start an online poker room, we suggest using the following as ‘food for thought.’ It’s not advice, legal or otherwise. We recommend you speak to a real professional if you decide to move forward with this kind of venture.
Let’s start with the biggest mistakes we see new poker rooms make. This is by no means an exhaustive list, and there’s a lot of overlap, too. In fact, you could say each of these mistakes share a very common thought process – that starting a poker room is easy.
This phrase probably sums up this entire section. But many people think we’re still living in the ‘good ol’ days’ of 2003-2004, when Moneymaker won the WSOP Main Event. When poker become cool again overnight.
This was the easiest time to make money in the industry as a player, coach, affiliate and business owner. The market was young, new and ripe for the picking.
But it’s not anymore.
The market’s mature now. It’s going to take a lot more than a deposit bonus, large rake back deal or celebrity endorsement to get your site off the ground.
I saw a quote the other day on an old (2007) forum post where someone was asking for advice on how to start an online poker site. One of the replies said, if you don’t have at least $10 million, don’t bother.
I’m not sure if that’s true, or, because of how old the post is if you’ll actually need more. But I believe it.
I share more ideas of how much things will cost later in article. But you’ll need money for all sorts of things, such as:
And loads more, I’m sure.
Any one of these points can set you back a solid 6-figures. Combined, you’re looking at millions of dollars.
And you can’t forget yourself – you need money to pay your bills and take care of your family while you build the business. Because there’s a good chance your business won’t be paying you your share of the profits for several months, even years after you get started – assuming it even lasts that long.
The last mistake I want to point out is creating a ‘me too’ business. In other words, creating a poker site with no clear USP (unique selling proposition).
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A USP, in theory, is simple – it’s merely what makes you different from, or better than, your competition.
This is easier said than done, though. Especially in a mature market where many things have already been tried, and in a marketplace where your competitors are already profitable and have multi-million-dollar marketing budgets.
The simple fact is this – if you don’t have a USP, don’t bother starting an online poker site (much less any other business). It’s so important, in fact, we decided to dedicate an entire section of this page to it.
It’s imperative you realize how competitive the online poker industry is.
You don’t want to be afraid of the competition. But you do need to realize it’s there. You need to respect it.
More importantly, you need to use your competition to see where the gaps you can fill are in the marketplace. Because one of the worst things you can do – something that will make your climb to the top even harder to make – is becoming a ‘me too’ poker site.
What’s a ‘me too’ poker site?
A good example of a ‘me too’ poker site are poker skins. Skins were a big deal several years ago.
A ‘skin’ is a business in a box. You get the software, games, promotion, banking and marketing from a network (like the Merge Poker Network). Many networks pool the players from all the sites, too, so you even have games for your new customers to join.
Everything about a skin is the same – the games, traffic, stakes, functionality, etc. – the only difference is how it looks – how it’s skinned.
This is great for new businesses. You hardly have to do anything other than come up with a catchy name and make sure the domain URL is available.
The biggest problem, though? You have no competitive advantage. You’re like everyone else.
So why should someone choose you over your competition? Why should someone switch from an existing site – which has more history in safety, reputation and payments – to a brand-new site?
An even better question – why should someone play at your site over PokerStars, Full Tilt, 888 and Bet365? Not only do these sites have a positive track records, lots of games, stakes, options, etc., but they’re also one of a kind. They offer something (most) other sites don’t.
But most, if not all the poker sites on the Merge Gaming Network either busted, merged with another (Merge) skin or for some other reason went out of business.
The bottom line – it’s hard to compete when you’re like everyone else. So, if you can’t answer either of those questions – if you can’t come up with a clear USP – don’t even bother starting a poker site.
Because chances are you’ll fail even if you do have one.
It’s that simple.
“What are you doing to do differently that isn’t already well covered? I think people think it’s a lot easier than it is. Also, players aren’t going to come to play for you just as a favor. Everyone needs to be offered something, or else they will just play where they are already.” – Karl Mahrenholz
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Okay, you heard me loud and clear – you need a USP. But how do you come up with one?
The fastest way to come up with a unique selling proposition is to find a gap in the marketplace. What can you do or add to the marketplace that your competition doesn’t? What do they do that you can do better?
Here are some ideas to get your gears turning:
Those are just a few ideas to get you thinking about what the marketplace might need. There’s no guarantee they’ll work.
Whatever you do, don’t become a ‘me too’ business. You’ll struggle to build up your player base if you do.
And your player base is one of the most important pieces to the poker startup puzzle.
Your USP is one of the most important pieces of the poker startup puzzle. But there are more – a LOT more. Some pieces will apply to nearly every business, while some are specific to the online gambling industry.
Either way, you cannot ignore the following puzzle pieces.
One thing you need to think about are the players you’re going to serve. What countries are they from? Because this will define who you will need to seek licensing approval and future regulation from.
Every jurisdiction is different in their licensing requirements and the process you need to take to apply and get approved.
They’re also different in how strict they are to operators.
A real extreme example of jurisdictions on opposite ends of the spectrum is Costa Rica and the UK. The UK is by far the strictest of the two – possibly even the strictest commission online.
Costa Rica is the opposite. Operators can get away with far more under their watch.
Either way, it shouldn’t bother you how strict they are if you plan to operate above board. But another way to look at it is this – many experienced players know they have a better chance of being treated fairly if the poker site is overseen by the UK Commission than the one in Costa Rica. So, all other things being equal, which poker site do you think that player would choose?
Absolutely – the poker site with the UK license.
Another thing to think about when it comes to licensing and regulation are the costs. This may set you back tens, if not hundreds of thousands of dollars – maybe more – PURELY IN FEES.
I read a forum post from nearly 9 years ago where they were discussing launching a poker site. And here’s what someone suggested the fees were back then based on the jurisdiction:
Who knows if this is what you’d pay today – you’d probably have to pay even more.
This is going to be short and sweet because there’s no way we can cover every state, country, nation or jurisdiction out there.
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But you need to remember that you will owe taxes on the revenue you make. And, keep in mind that revenue is NOT the same thing as profit. Everyone else will get a piece of your revenue BEFORE you do.
That includes the government.
You’ll want to talk to a lawyer or advisor to know how much you’ll owe (if anything).
Software is one of the most important things to think about and plan. You can make this as simple or as complicated as you want.
Here’s the short version – you’ll have two choices – you can go with a white label or poker ‘skin,’ or you can have a custom platform built.
The poker skin is the simplest solution. You talk to the network, fill out an application, pay any fees, do your paperwork, etc., and then you get a brand-new poker room. The problem is your poker room – your games, software, graphics, etc. – will be like every other operator already on their network.
Building a custom platform is the complicated solution. You’ll have to plan everything out – what you want the software to look like, what games you want included, the stakes, how it should function, and on and on and on. The problem is how complicated, expensive and time consuming this process is. The bright side is you have a (minor) USP built in – your site is unique.
Important! Software isn’t a good enough USP nowadays. You need to have another clear (and much stronger) USP before you even get to the development phase.
Either way you go, you should expect to spend $100,000 to $500,000 minimum. You should also plan 6-12+ months for (custom) development, too, which doesn’t include the time it’ll take to find a dependable developer.
This is huge. I think too many new rooms launch with no real marketing plan outside of, “I will offer a ‘huge’ deposit bonus, ‘massive’ guaranteed tournaments and ‘generous’ rake back, and players will flock to my site in droves.
Sorry, not sorry. But this is real life, and that’s not how things work. People don’t care about deposits bonuses and rake back. At least not enough for it to push them to leave their current site for a new one.
No, what new operators need to do instead is invest in marketing. And for that, you need a marketing budget.
How much do you need? Well, according to an online gambling consultant:
To put in contrast what you are competing with, Amaya, the public company that owns PokerStars, posted up their year-end numbers a few months back. They equate marketing spends in the 100s of millions of USD. It is not easy to compete with that.
The simple answer is, the more you can spend, the better. I would definitely plan on spending somewhere in the 6-7-figure range – annually.
Though, this will depend on the market you’re trying to attract. If you’re targeting the US market, you won’t be able to advertise on any self-serve advertising platform (Google, Facebook, etc.). You’ll have to stick to direct site media buys and content marketing.
If you’re targeting international players, your options increase, but so does your competition. So you’ll need the budget and strategy to match.
Whatever you do, don’t rely (only) on affiliates. This is a HUGE mistake many new operators make. But the problem is many affiliates don’t want to promote an unknown room. So you need to be able to generate your own customers – especially in the beginning.
Tip! This is one of the most important pieces of the online poker puzzle. Because without customers, you have no games running. Without games running, it’s hard to attract new customers. It’s the whole ‘chicken and the egg’ problem. So make sure you learn how to acquire cold traffic and turn them into customers.
This is another biggie – and another complicated puzzle piece to cover because banking is different depending on the location of the customer you’re serving.
But the general idea is this – you’ll need payment processing. The more payments you can handle, the better. But you’ll need to find a merchant/payment processor who’s willing to deal with online gambling.
This is much easier for international operators. And this will be a royal pain in the backside for US/offshore poker sites (because offshore gambling operators are illegal in the states). You’ll have to deal with unreliable payment processors, which will delay how quickly you’re able to ship payments to your players.
Tip! Payment processing and shipping is single handedly one of the most complained about problems from (offshore) US customers. Getting this right can set you apart from 99% of your competition.
If you work with a poker network, there’s a good chance they can handle this for you. This is a bad idea, though, because you have no control over any of it. Plus, there have been horror stories of 3rd party white labelers (networks) stealing from their customers’ customers. Other networks will suggest payment processors – this is (probably) worth looking into.
You won’t be able to run the site yourself. You’re going to need help with all the different tasks included in running an online poker site.
Some of those tasks include:
And so on. Most, if not all of these tasks are ongoing, too, which increases your overhead (and reduces your profit).
One of the most important is customer support. Customer support isn’t one of those things you get to when you feel like it, either. The best sites respond in minutes, hours or maybe within 1 day.
Then, once you have all these roles taken care of, you need to maintain and improve. In other words, you need to ask yourself questions like:
And so on and so forth.
In other words, getting started is only half the battle. From there you need to focus on maintenance and improvement.
What if you want to accept poker players from the United States?
You’ll have two ways you can go – offshore (illegal) or onshore (legal).
Let’s start with legal online poker rooms.
Assuming you can even launch an online poker room in the United States (because each state is different, and may require a physical poker room/casino), it doesn’t mean it will be easy. There are lots of things to worry about.
For example:
Those are your biggest hurdles.
That all said, marketing will be a bit easier. You’ll (probably) be able to advertise on TV, the radio, paper and on billboards. Chances are you’ll be able to advertise on the larger advertising platforms (Google and Facebook), too.
One other thing – legal online gambling is going to happen in the United States. It’s just a matter of when – and, in this context, if you can manage to stay afloat long enough until more states pass legislation and launch sites.
An offshore poker site is an option, but realize you’re operating in the United States illegally. Because most of the anti-gambling laws written on both the state and federal level are aimed at operators.
It’s a game of cat and mouse. And YOU are the mouse.
You don’t have to look any further than Black Friday for proof. Only PokerStars came out in one piece – and only because they had the money to pay their fines, pay Full Tilt’s fines and pay Full Tilt’s customers back.
This cost PokerStars $500 MILLION DOLLARS. And even then they didn’t walk away unscathed.
Part of PokerStars’ motivation for paying all the fines is so they could one day enter the legal US market. And they’ve managed to make some progress there.
However, there are some sites PokerStars will never be allowed to operate in – or, at least, won’t be able to for a long time – because many states have, or will have a bad actor’s clause. Which is basically a rule saying that, if you got in some kind of (online) gambling trouble before, you’ll be unable to offer online gambling services in that state.
But assuming you can skirt the law, and the future doesn’t concern you, you can go the offshore route.
Banking will be one of your biggest obstacles. It will be difficult to find a payment processor who is willing to work with you and who can get payments through.
This is tough. There’s a reason why some of those poker sites from Black Friday created faux online stores – so they could fool payment processors into processing their payments.
…which is also why their indictment included felony money laundering and fraud charges.
Anyway, banking may be your biggest obstacle, but you’ll still have all the challenges we talked about above – which, honestly, is more than enough without adding ‘dodging the United States DOJ’ to your to-do list.
So while you may see an opportunity in the USA – and chances are there IS an opportunity here, because of how few legit sites there are servicing US players – it’s probably for a few reasons:
Does that sound like a business you want to build?
This article probably sounded pretty negative. And, we’d have to agree.
But we wanted to share the truth, as best as we can tell it, having never started an online poker site ourselves.
But we do have a fair amount of knowledge of the industry, between playing online poker and being affiliates (marketing partners) with so many poker sites over the years.
We’re also business owners.
And the truth is, the majority of (poker) startups fail. Only a few rise to the top to become the next PokerStar, Full Tilt, 888 or Bodog.
The rest – the majority – crash and burn. Some die slow and quiet deaths. Others die epically, in a greasy, fiery heap along the mountainside …often taking their customers and affiliates down with them.
They become the Lock Pokers, Ultimate Bets and Absolute Pokers of the world.
Chances are you will, too. You should be prepared to fail.
Though you can increase your chances of success by having an adequate (multi-million dollar) budget, business plan, a bit of luck and proper advice from a highly paid and qualified consultant.
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How to Make Sure Your Money is Safe When Enjoying Online Poker
Before you enjoy real money poker, you need to make sure your bankroll will be safe. While most poker sites are reputable – avoiding the rogues should be a top priority for all players. This page covers the key factors involved in making sure you can enjoy online poker safely and securely.
Poker sites have a big reason to treat players fairly, and to ensure that funds are secure. It only takes one scandal or payment issue to make people wary. This applies to the fairness of the deal, implementation of bonus terms and ensuring that players are paid out quickly.
The information on this page will help you enjoy online poker with complete peace of mind. Here is what you will find:
After these factors are explained, you will find a list of the biggest and best poker rooms for US and International players – with an overview of the safety measures in place for each.
One of the biggest concerns players have about online poker is whether the deal is fair. When you are on the receiving end of a bad beat, it can feel like the online poker site is rigged against you.
While this is a common concern, the math does not back up the many claims. Since online poker began there have been billions of hands dealt. Large scale testing, player databases and tracking services are unanimous in acknowledging that the shuffle is random.
To back up their claims, the most trusted poker rooms regularly use independent auditing companies. Games are tested over millions of hands, and any discrepancies highlighted. Good sites have their deal checked regularly – and will display certificates or links to their results. Look out for the following names:
Despite the claims (of mainly bad players), poker is unilaterally fair when it comes to the deal – you’ll get your fair share of aces at all the major rooms.
If you still have doubts – think of this from the perspective of the poker rooms. Their business model means that a fair deal is essential. Any site caught cheating (including with ‘Super Users’) would lose most of their players overnight. With a fair deal they keep players coming back – and keep taking the rake and tournament fees which fills their coffers.
Of all the elements which go into making online poker safe, website security is the easiest to check. All browsers use the ‘Secure’ tag to show sites which have valid security certificates. SSL is only the start of it. You can check the ‘about us’ information at all the main rooms for information on how your personal data is held. At the time of writing, there have been no data breaches at legit online poker sites for personal or payment data.
You’ll have a lot of options for depositing at poker sites. Which you choose will depend on your location (US sites have fewer options due to banking restrictions) and your personal attitude to risk.
Credit cards and debit cards are the easiest way to deposit for both US and international players. Using these is the same as shopping online – and very fast. Many players are reluctant to share their credit card information with poker rooms. This can be due to the perception of risk, or because of a desire to keep gambling transactions away from your bank statement.
Alternative deposit methods which are even safer include the following:
This is not an exhaustive list. You will find many local options around the world, and more brands which fit into the categories above. From a safely perspective, you can choose the method which suits your attitude to risk the best.
The mark of a good reliable poker site is that they administer their bonuses in a fair and straightforward manner. Good online poker sites have clear terms and will not void bonuses for small things like playing the wrong games.
Play-through or points requirements to clear bonuses are very different across the sites. You need to ensure that that excellent bonus deal is not impossible to clear due to slow point accumulation or limited time.
Reputable brands have ongoing rewards and promotions to boost the bankroll of loyal players. If you see a big headline bonus, and no promotions, it is possible that that room is not somewhere people hang around for long.
In addition to the bonus terms, look for a responsible gaming policy. This shows how seriously the safest online poker sites take problem gambling. The best sites have self-exclusion and deposit limits, which players can volunteer to have in place.
Operating licenses are a great sign that you have found a secure and reputable room. There are very few reputable sites without a license. For US players, only Bovada / Ignition does not have one. Fortunately, these sites have a reputation going back many years – and are among the best for fast withdrawals.
Jurisdictions that license poker rooms will depend on the market they are serving. Big international sites do not accept players from the US. These sites are licensed in Malta, Gibraltar or the Isle of Man. In addition, many countries have their own site licensing setup. The UK Gambling Commission is among the strictest. A poker site licensed by them is more likely to be safe.
For US sites, licenses are awarded by Caribbean nations and Central American countries. Jurisdictions include Antigua, Curacao and Panama. You will also find sites which are licensed by the Kahnawake tribe.
While the lack of an operating license should not stop you playing at a site – it should mean your checks on reputation, RNG testing and security need to be more through.
Since the big shake-up of Black Friday in 2011, a new group of sites has taken over serving the US market. These sites operate legally from the Caribbean or Central America – and have growing player bases. The question is, are these online poker rooms safe?
Bovada / Ignition Poker: These sites are part of a network which share players. Bovada is the single biggest US friendly poker room by a wide margin. They voluntarily gave up their license (from Kahawake) in 2016. Fortunately, other factors show that this is a very safe poker room. This site has a very long track record of looking after players well – and paying out winnings quickly. Their site is secure, tested (by iTech Labs) and a wide range of deposit options, including Bitcoin, are available. You can find out more in our detailed Bovada Poker review.
America’s Cardroom: This site is part of the Winning Poker Network. They hold the biggest poker tournaments, and regularly hold events known as the ‘Online Super Series’. ACR Poker are licensed by the government of Curacao. Their games are tested and their website secure. With more than 8 years online – this is considered a safe online poker site by US players and are open to international markets too.
BetOnline / Sportsbetting Poker: This site recovered from some historical payment scandals and are now under new management. They are part of the ‘Chico Poker Network’. Both rooms are licensed in Panama. While this is a smaller network, the games are considered soft – thanks to a lot of cross over traffic from the big sports betting brands.
International players have a pick of some huge and long-running brands. These rooms have built a reputation over decades in many cases. Some are listed on the London Stock Exchange. This brings a new level of financial oversight – in addition to any security measures they put in place individually.
It is hard to choose one international site which is ‘safer’ than the others. PokerStars, Party Poker, 888.com and Bet365 are all huge brands with everything covered above fully in place. If you want to enjoy the games at a smaller international poker site, it is worth doing some extra checks to make sure that they comply.
Document / Id checks are something which divide players. Many reputable sites will ask for ID. This can happen when you make a deposit, and if not, it will always happen when you make your first withdrawal. Typical requests include a picture of your photo ID, and proof of address. Some sites also ask for a picture of both sides of your credit card (you can black out some of the numbers).
My view on these is that they protect you as much as they do the poker sites. Without them, poker would be the target of fraud and money laundering – making the games unsafe for regular players.
If you want to ensure that your withdrawals are quick, you should prepare for the ‘KYC check’ in advance.
The good news is that online poker is extremely safe. You’ll be protected in many different ways by sites which have a huge interest in maintaining their reputation. This includes regular testing of deal fairness (remember, after billions of hands, no proof of rigged deals has ever been produced).
Payment security is increased by the large number of options available. If you feed uncomfortable sharing your credit card info, then cryptocurrency, eWallets and local bank transfers are all safe and secure options.