Casino Brokers: Their role in the iGaming industry

The online gambling industry has created numerous new job opportunities. From game developers and designers to data analysts, marketing professionals and affiliate managers, all these positions have emerged to support the industry and ensure its smooth operation.

With the development of the industry and affiliate networks, new services have also appeared. One of them particularly stands out - casino brokerage. Who are casino brokers, and how do they contribute to the iGaming industry? Stay tuned to find out.  

Brokerage services explained

In summary, a casino broker is an intermediary who helps individuals or companies buy or sell established online gambling platforms. Although they can be compared with real estate agents, casino brokers must have considerable expertise in the gambling industry. To ensure the acquisition process goes smoothly for both parties, they provide an extensive range of services. Here is an overview of the services casino brokers offer.  

Business valuation

It all starts with a business valuation, which involves assessing various factors, including the monthly or annual earnings of the casino for sale, the size of its user base, and the licenses it holds. Casino brokers also evaluate the brand reputation and analyze the casino's operational costs, which is one of the crucial pieces of information for a potential buyer.

Listing casinos for sale

Casino brokers use specialized platforms to market gambling platforms to potential buyers. At this stage, they protect the casino's identity by keeping its name confidential. If you go to any platform offering brokerage services, you'll notice that no brands are listed. Still, you can see prices and essential details, such as what is up for sale or which license the operator holds.

Screening of potential buyers

The role of casino brokers also covers inspecting the background of potential buyers to ensure that they are capable of operating the casino. They conduct due diligence to make sure interested companies have met all the legal and financial requirements.

Price negotiation

A casino broker also negotiates on behalf of the buyer or seller to come to a fair price. To determine it, brokers focus on the platform's financial performance and technical capabilities. At the same time, they must be familiar with iGaming regulations since licensing in various jurisdictions affects the casino's price differently.

Legal guidance

Those who want to operate online casinos must be aware of regulatory requirements in different jurisdictions. Brokers are there to help both buyers and sellers understand the legal landscape, including how to comply with laws and more. One of the most challenging aspects of casino acquisition is the transfer of gambling licenses, and brokers can assist new proprietors in that.

Financial and other kinds of support

Brokers can provide financial support to casino buyers by securing loans or structuring payment plans. They can also hold funds during the transaction until both parties fulfill their obligations and the final payment is completed.

Once the casino is sold, brokers may assist in the transition process, helping the new owner take control of operations. Managing customer support teams and ensuring continuity in business operations are additional activities where brokers can help.

Assistance in the transfer of assets

Brokerage services also include assessing assets and transferring them to the new owner. These may be intellectual property, like branding, software, technological infrastructure, and more. Brokers also ensure that user information, account balances, and transaction histories are transferred securely while keeping players' sensitive details protected.

Consulting

When it comes to the process of selling/buying an online casino, both sellers and buyers should make informed decisions. Casino brokers are there to offer consulting services, including providing advice on market and industry trends, for instance. They can also help stakeholders manage potential risks and cooperate with third-party service providers, such as software developers, payment processors, and more.

Why hire casino brokers?

Obviously, casino brokers play a critical role in gambling business sales, from connecting buyers with sellers to providing expertise in various aspects of these transactions. As such, they can help investors unfamiliar with the iGaming industry and its regulatory framework venture into new businesses.

At the same time, casino brokerage services can help casino operators who want to sell their business find buyers with impeccable backgrounds who are capable of meeting all the requirements and handling operations legally. So, the role of casino brokers in maintaining a responsible and trustworthy online gambling market is indispensable.