Introduction to the Online Gaming Business MAIN
Software Licensing and a List of Companies that Provide Online Casino and Sportsbook Software SOFTWARE
Online Marketing Companies that get Web Traffic to a Casino Web Site MARKETING
Sublicensing an Online Wagering operation from a Licensee AFFILIATE PROGRAMS
Payment Processing and Merchant Accounts for Online Wagering operations to use E-COMMERCE
Software Considerations GAME TYPES
Legislation issues for the USA and abroad LEGAL ISSUES
Online Casino and Other Gambling/Casino Related Conferences CONFERENCES
Economic Factors worth considering with an Online Gaming Operation ECONOMICS
Things to Watch for when Starting an Online Casino Business PITFALLS
Forums - Hear what others have to say about the business MESSAGE BOARDS
Online Wagering Links: News, Stocks, Organizations, etc. LINKS
About Yorktown Ventures and the Author ABOUT US


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What is Sublicensing?

Sublicensing is starting an Online Casino business through an existing licensee of a Online Gambling Software Provider. In other words, someone became a licensee of one of the companies in the Licensing Section and is willing to offer sublicensing arrangements to other companies. Usually, there is an initiation fee one must pay, which sometimes can be as low as USD $10,000 and as high as USD $50,000 (some are higher). The percentage of the take a sublicensee receives is often much less than a full licensee. While more money is spent on marketing with less returns, the cost to begin the business has been reduced substantially. In addition, the initiation fee helps the licensee offset the licensing fees paid to the Online Gambling Software Provider. All ecommerce for a sublicensee are accomplished via the merchant account of the licensee. In most cases, each transaction can be tracked individually because it originated from the sublicensee's website. The sublicensee is paid from the licensee directly.

Usually, the gaming license as well as web hosting is offered as part of the package. Sometimes a monthly fee for the web hosting and maintenance is required. Royalties paid to a Sublicense from the licensee are from 20-75% of the monthly profits. It is usually on a sliding scale basis. As an example: the subliensee receives 45% of the the profits for the first USD $550,000 in monthly revenue; and will receive 55% of the profits for $550,001 - 999,999; and will receive 70% of the profits for over $1,000,000 in monthly revenue. What needs to be closely watched is the reporting of the numbers, which is usually via third party.

Another option is to sign up with a casino webmaster affiliate program. An affiliate program is designed as a revenue sharing model: A webmaster receives a percentage of the revenue from another casino for every gambler he/she refers. In some cases, this extends for the lifetime of the wagers from that individual. For example, a gambler goes to your website, which is affiliated with XYZ Casino. The gambler clicks on the XYZ casino link and signs up for an account with XYZ Casino (this is called a "conversion"). The gambler loses $1000 in wagers over the course of the month. If the program paid 25%, the casino would mail a check for $250 to the affiliate (webmaster). Usually there are no upfront costs associated with this. These business models require an extreme high level of trust on behalf of the casino. To maximize revenue, a webmaster generally place the best performing casinos with the largest payouts in the best web position on the site.

A list of companies below offer sublicensing and affiliate plans:

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Worldwide Support Systems  

FutureBet Gaming Systems (USA): FutureBet is an advanced gaming software system (casino, sportsbook, fantasy sports, skill games). Clients receive superior technical infrastructure necessary to excel in the online gaming industry, with an assortment of services including: e-commerce, gaming license assistance, hosting and server maintenance, marketing and player support. We offer both master and sublicensing packages. .
Interactive Gaming Systems  

Interactive Gaming Systems (Argentina): IGS provides clients with top quality gaming platform software for casino games(web based and download), multiplayer poker, sportsbook, bingo, skill games and more. We offer both the sub-license and the master license models which can include such services as merchant processing, hosting and server maintence, player and licensee support as well gaming license assistance. We have the capability and flexibility of customizing existing platforms to fit the clients specific needs as well as develop new projects.
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Lock Affiliates
Wager Web Affiliates
Fortune Affiliates
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SIA Affiliates- site isnot valid
Live Casino Partners
Affiliates United
Everest Affiliates
Affiliate Edge
Revenue Giants
Affiliate Lounge
Slotland Affiliates
888 Affiliates
Guru Revenue
Club Gold Casino
Mojo Affiliates
Lotus Asia Affiliate
Rewards Affiliates
PlazaWin Affiliate Program
Havana Casino Affiliates
Betfair Affiliate Program
Interwetten Affiliates
PKR Affiliates
Euro Partners
BestPay Partners
Aspire Affiliates
32Red Affiliates
Score Affiliates
Dublinbet Affiliates
Doxxbet Affiliates Affiliates
Genesys Affiliates
High Pulse Poker Affiliates
BetVictor Affiliates
Superior Share
Jackpot Capital
Star Partner
Winner Affiliates
Poker Host
myBet Partners
Lotos Affiliates
Intertops affiliates
Fortune Affiliates
Face Up Gaming
Crazy Rewards
Betting Partners
BetCruise Affiliate Program
Affiliate Edge
138 SunGame Affiliate Program
WBX Affiliates
GGS Affiliates
Genting Affiliates
Firebrand Affiliates
Dublinbet Affiliate Program
BetVictor Affiliates
B3W Affiliation
7Red Affiliates
Wager Junction
Skrill (Moneybookers) Affiliates
Roxy Affiliates
Rome Partners
Rewards Affiliates
Red Returns
NordicBet Partners
Jackpot Party Select
Income Access
GoWild Affiliates
Bingocams Partners
Big Time Revenue
Betfred Affiliates
Bellevue Affiliates
anyoption Partners
Affiliate Club
Ace Revenue
Club777 Affiliate program
21Nova Casino Affiliate program

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   Last Update: October 2010    Legal Disclaimers
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