The unexpected Brexit vote has created an air of uncertainty around financial markets, and the compounding effects of a Trump presidency have combined to make the climate for investment decidedly more lukewarm.
As traditional markets falter to the effects of volatility, some investors are left with little choice but to examine alternative routes to generating a return on their capital.
At the same time, the opportunities that exist for investors, even on a small scale, have never been greater. The Internet provides a mechanism for ordinary people with money to invest to generate a return on that investment. Of particular interest is the gambling sector, where there are a number of routes to market individual investors can take to generate a return on their cash.
Investing in gambling, particularly online, can be highly lucrative. The online gambling industry in all its forms is enjoying rapid growth globally, and while it’s a competitive field, there remains a huge number of opportunities out there for investors with the right approach. But how feasible is it to invest in the gambling industry, and what are the main ways of approaching this type of investment?
White Labelling – Start Your Own Casino
While not always recommended for the faint of heart, it’s never been easier than today to start your own casino. Depending on the amount of capital you have to invest, a casino can be an excellent place to divert your resources, ensuring a steady return on capital with virtually unlimited upside potential.
For most investors, the idea of starting a casino is one that never occurs to them, quite simply because there are a range of challenges posed to those who would choose this path. Gambling is regulated, so you need to obtain licensing, not to mention the software, marketing, staffing, customer support, and a range of other commercial concerns. Fortunately, investors have an alternative – white labelling.
There are companies operating online who specialise in white label casinos, giving investors the chance to start a turn-key operation that takes care of all of the back-end. Essentially, these companies are looking for financiers to run casinos, while they themselves provide all the necessary back-room functionality to make the casino legal, legitimate and profitable.
White labelling packages remove much of the hard work of actually establishing an online site, as well as allowing investors to leverage existing market expertise. The result is a much more straightforward investment, allowing those with the capital to act as the House, without the need to spend hundreds of thousands or even millions of dollars establishing a whole tech and compliance infrastructure.
White labelling is a great solution for investors who like the returns available from gambling investment, but lack the knowledge, expertise, capital and/or the will to go through the painstaking process of setting up a casino on your own.
Gambling Affiliation – Promoting Existing Gambling Brands
If setting up a white label casino feels a bit of grand project for your budget or inclination, fear not – there are others opportunities to get involved in the gambling space as an investor.
Arguably the easiest in-road is through gambling affiliation. Affiliation is the business of recommending new players, sports books, bingo sites and other gambling operators. In return for your recommendation, a bounty is paid on each lead – in some cases hundreds of dollars for a single signup, through to a percentage share of the profits from each referred player.
You don’t need millions to invest in gambling affiliation. The process usually requires a website and a strategy for driving traffic, in the hope that you can sign those visitors up for an account at one of your recommended gambling partners. Common themes include casino review sites, slot recommendations and game strategies/help guides. And because gambling referrals are so valuable to online gambling operators, they pay good money for each new customer you refer.
Gambling affiliation is the perfect route to gambling investment for smaller investors, or indeed for those with existing experience in building websites and creating content. While it can still be hard work to deploy this type of investment, the rewards can be substantial, and long-term. In an otherwise uncertain investment environment, the returns on offer through gambling affiliation start to look all the more secure, and in any event, will usually outstrip the ROI you’ll get from investing in financial markets.
Is Gambling Going Places?
These two methods for investing in gambling are by no means the only way to get involved, and there are a number of opportunities for would-be investors to generate a return from the gambling industry. But what about the industry itself, and the medium to long-term projections for investors?
Online gambling continues to grow rapidly year on year, and the market remains a long way from being saturated. Indeed, gambling laws in some parts of the world, most notably the US, still prohibit some markets from enjoying the full gambling experience. Getting involved in investing in gambling now still allows for investors to generate a long-term return, as their assets as well as the broader market for gambling continues to grow.
In the era of post-Brexit investment uncertainty, markets like gambling are proving to be an increasingly safe-haven, lucrative way for investors to generate capital returns.