Build, Buy or Integrate? The Technology Decisions Behind a New iGaming Venture
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The iGaming industry is experiencing significant revenue growth and is estimated to have a global gross revenue of around $115 billion. Many casino operators have been able to leverage the lucrative opportunity presented by a rapidly growing industry but of course, there are considerable challenges involved in making this type of venture a success.
Firstly, strict regulatory frameworks must be adhered to and that involves a substantial amount of work and organisation. The start-up costs reflect the work that is required in order to be in a position to obtain a licence that allows you to operate. Unlike many other types of ventures where your business can start off slowly and gradually build, casino ventures require high commitment levels from day one.
One of the additional challenges is the complexity of the technology infrastructure that is required to run an online casino.
Online casinos require a blend of systems including account management, games library integration, payment processing, advanced security and tech solutions that support compliance requirements. A quick look at the interface for Tikal Casino shows you all the different elements involved in the frontend but there are many more complex technology solutions working in the background.
A key decision that needs to be made is whether to build, buy or integrate and we review these three different options and analyse the pros and cons of each:
Build Your Own Platform
This option is the most difficult to implement, requiring a team of specialists to build and test a customised platform. The costs involved in developing your own platform will be high but there are multiple advantages to this approach, including that you will have full control of everything from design to ongoing development.
This approach allows you to design a platform that is distinct from others, rather than having the uniform appearance and features that are common across purchased platforms. One of the biggest disadvantages after the cost, is the length of time it will take to develop a platform from scratch. It could take over a year to build, depending on the team you hire to complete the build.
Buy a Turnkey Platform
Buying a platform that is already pre-configured is the fastest way to get your casino up and running and when you are using a provider who specifically builds for the casino industry, the tech required to support compliance will be included. A turnkey platform can be deployed in just a few weeks, so if speed is your top priority, this is the most suitable choice.
It will also be cheaper than paying for a team of developers and software engineers but the main drawback is that you have limited control over customising the platform. For example, you might not be able to add any features and you will usually rely on the provider’s services for updates.
Integrate Multiple Solutions
The third option is to integrate several solutions from different providers, such as an account management system from one, a payment gateway from another and a game aggregator from an additional supplier, etc.
An integrated approach can be cheaper than building your own but you will have multiple third-parties to work with rather than having one point of contact you would have if you buy from one supplier. Integrating solutions usually provides you with more scope for customisation compared to a turnkey platform but you will still require extensive in-house technical expertise to oversee development and ongoing updates.
Conclusion
While the main priorities for casino operators launching a new venture will include costs, flexibility and length of time taken for deployment, in the casino industry, compliance is the overriding consideration. You can build a platform that offers a better user experience than competitors but if you do not have the tech infrastructure in place to obtain and renew an operator's license, all the work is pointless.
Therefore, at the early planning stages, you should determine whether it is realistic to set up a team capable of covering every aspect of compliance requirements in the build. If there is a risk that you cannot find the necessary expertise, a pre-built or integrated platform may be the more suitable choice.
It is a good idea to get several companies to deliver a pitch for their platforms so that you can get a better understanding of what their services and products include, how they handle compliance requirements and what experience they have of working with similar ventures.
If customisation and overall control is more important than cost and delivery speed, and you are confident that you can recruit the right technical team, building your own casino platform may be the route to take.