To see casinos shut down is unfortunately quite common in our industry and the latest one to do so is CasinoInter.
Another One Bites the Dust
That’s a harsh headline but it’s not meant in a bad way. However, running a successful and more specifically a profitable online casino is really hard. The industry is fiercely competitive and there are a lot of components that need to be working for things to go right. Even if things run smoothly, it can still take years before you make any money. Sometimes all it takes is a couple of big wins for a company to quickly run out of money.
Seeing an online casino shutting down is always tough, especially if there is a lot of potential, which I thought CasinoInter had. CasinoInter just recently communicated via its management and owners that it was shutting the doors to its business on October 3rd.
Seemed to Have Come a Long Way
I honestly had high hopes for CasinoInter and only having started the business in April 2021, they seemed to have come a long way during this first year and a half. I mean there were around 9,000 games, including 7,000 slots, as well as a sportsbook. Maybe they aimed too high and flew too close to the sun, who knows.
Why Do Online Casinos Go Bankrupt?
Because of the business being so competitive, casinos have to constantly compete against each other for new players. On top of that there are new casinos popping up each week. Unless you have an unlimited budget, you also need to make sure that whatever marketing you are doing is thought through and strategic, resulting in players looking to deposit into your casino.
Attracting New Players Becomes Extra Important
Running out of money is unfortunately common for a casino and there are casinos going bankrupt every month. This can be due to a weak business model or simply poor execution. This results in not having enough money to pay players or even employees, which is why attracting new players becomes extra important.
How Much Does It Cost to Start an Online Casino?
These days, pretty much anyone can start a casino and to many it looks like an easy money-grab but that’s not at all the case.
According to reports, in order to start a normal size casino, you’ll need an investor with a budget around €2.5-3 million. A business model like this is usually designed for you to be able to start making a profit at the very earliest after 2 years. This is, cnce again, why continuously recruiting new players is so vital in order to keep the business alive.
As you can understand it’s not easy, and far from a guarantee, that you’ll even make it that far.
If CasinoInter caught a bad case of bankruptcy or what the reason for the decision is I have no idea. All I know is that it shut down business a little over a week ago.