How to Attract Investors for iGaming Business?

Start-up founders are often stuck in a catch-22 situation where funding is concerned. Where should they obtain it from, and will it leave them with less control?

In iGaming, this challenge becomes even more profound. 

There are no venture capitalists specializing in online gambling, nor are professional VCs willing to get involved in the complex world of iGaming business.

The verdict is clear: getting any kind of financial support is going to be a struggle.

The ideal case is to bring a good amount of capital with yourself when launching such a venture. However, that is not the only option. The right approach can help you find co-founders who pitch in financially, or locate prominent individuals in the industry who are willing to become investors in your business.

Let’s understand how this approach can be built and what you need to do to make it work for you.

The Size of an Online Gambling Investment

Before you wonder how to attract investors for iGaming business, it is important to understand how much money you’re looking to leverage.

Primarily, any iGaming business has some basic investment requirements for getting off the ground.

The Toll of Licensing

The first call of order is thinking about the licensing regime to be followed. Licenses must be obtained for each jurisdiction you wish to operate in one by one. That’s on top of the fact that each license is quite costly.

International licenses are also available, and can be opted for. They offer access to groups of countries, depending on the rules applicable there. 

Take for instance, the Malta online casino license. It has a ten year validity period and it is accepted by EU member countries. However, there are stringent rules for applicants, which include, regular audits, mandatory responsible gambling norms and requirement for withdrawal limits to be implemented.

It is critical to note here that license fees are not a one-time only expense. Most of them must be renewed periodically, which adds to the recurrent costs of running your iGaming business.

Another matter of importance is the penalties and duties laid on operators and brands by regulatory bodies. If rules and regulations are not obeyed, businesses are liable to pay damages, which can be very hefty. Weighing in such a possible expense is crucial to get the complete picture of the kind of fluid money setting up an online gambling business takes.

Building Costs

Then come the major expenses of setting up the actual business.

It begins with creating the superstructure of your operation, i.e. the platform. This can either be a website or an app, or both. Ideally, you should select one to begin with and then branch out and set up the other interface, once your venture becomes profitable.

A custom software development will be the priciest option for you. It will involve hiring a team of developers and implementing an at least six month project to create a fully functioning website or app, with all the customization and initial features needed. However, this is not the only method to get started.

You can also go for a turnkey solution or a white-label solution. 

The former is a ready-to-use, pre-built platform, which can be customized to a minimal extent. They come in-built with integrations for payment, games and features. It means they’re quick to deploy and are ready for launch right away.

The latter is the least customizable option, allowing only for branding, colourways and small widget additions, if at all. Stability, maintenance and so on stop becoming your concerns if you choose this type of iGaming software provider. However, you’ll be saddled with monthly subscription costs and one-time setup fees. It is crucial to be aware of each of the expenses at the planning stage.

In fact, it is vital to know what kind of building costs will be incurred before you prospect on how to attract investors for iGaming business. 

Recurring Expenses 

The day-to-day cost of keeping your online casino or online slot business running is also fairly pricey. It comes with some basic costs, which can be predicted and planned for. But, there are also expenses which can come out of nowhere, based on the jurisdiction you’re operating in, the promotional tactics you’re employing, or even the kind of customers you’re coming across.  

Basic operating costs include salaries, electricity, integration and subscription fees, marketing costs, bonuses and other promotions, bank-related fees and some amount of fluid cash to have a back-up for emergencies.

However, your business could be affected by suspicious and illegal activity, in the form of bonus abuse fraud, which affects your iGaming business’ finances negatively. Or, you could be subject to a lot of chargebacks and payment disputes. 

While this is not the ideal scenario for any business owner, it is a major aspect in ascertaining how much fund-raising is needed in general. Then you can work out how to attract investors for iGaming business, and keep in touch with the ones who are able to provide the amount of funds you’re looking for.

Why is Getting Investment Necessary in iGaming?

Online gambling is a resource-heavy business. Time is just one of the costs it calls for, since iGaming is a 24-hour industry. 

But that is not all. The business is often viewed as a money sink — asking for a gargantuan amount of resources and attention, with no guarantee of success. 

However, as a rapidly growing industry — netting roughly $78.6 billion in 2024, and expanding quickly at a rate of about 12% CAGR — it makes sense to invest in online gambling. The pay off might take some time, but if you’re on your toes and ahead of the curve, the outcome will be highly rewarding in nature.

Before we discover how to attract investors for iGaming business, it is crucial to understand why they’re required in the first place. Here are the major reasons.

Very High Cost of Entry

As discussed above, the basic requirements for establishing an online gambling business are highly expensive. There is almost no way to set up a simple or small enterprise and leave the scaling to later.

Right at the outset, an iGaming entrepreneur must be ready to quickly sort operational requirements and manage any size of player numbers, because user growth can be quite sporadic. Sometimes, the brand, games, user experience, promotional campaign or any of aspect of the platform may click for users, leading to the sudden influx of lots of players.

Occasionally, the right approach also takes time to build traction. Yet the basic requirements for business operation and operational running must not be compromised in the meanwhile. 

Security Cost

Data privacy and security of personal information is sacred in the iGaming industry. This is why no matter what, maintaining strict standards of securing information must be followed by all players in this industry.

It is also critical to build trust with users. Nobody wants to engage with a business that doesn’t protect their sensitive information carefully.

Using third party tools to ensure this happens can quickly add to the costs. 

Advanced Regulatory Environment

The rules of iGaming are complex. Businesses often require a good amount of industry knowledge and regulatory insight to establish the right internal compliance norms and practices to meet these requirements. 

Anti-money laundering (AML) and know your customer (KYC) are some of the most basic safeguards which are required for iGaming businesses to obtain before they begin operating. 

Then there are jurisdiction-based norms which can vary based on the region or countries you operate in. There is licensing, taxation, operational security and iGaming advertising rules to follow.

For instance, the UK advertising codes require gambling to not be shown as a means to achieving social or personal success, or as a solution to life’s problems. In addition, age limits are placed on content interactions through social media. Under 18s must be shielded from content related to online gambling, while under 25s can be exposed to it with strict rules.

Such precise restrictions require a lot of know-how and legal understanding to implement effectively. This aspect too can lead to an addition of overheads.

Not meeting these requirements can sometimes lead to heavy penalties for operators and brands, which makes this overhead essential, rather than optional. That’s another moment which is likely to push you to seek out investors for your online gambling venture.

Expensive User Acquisition

Many refer to the market as saturated. In certain regions, where the market is more mature, the outcomes for a business can be better. But it is also within these areas that more operators can be found.

Major player share is already cornered by established businesses like FanDuel, BetMGM, Flutter and so on. New sportsbooks face an unprecedented level of competition, even in the most niche markets.

However, users may show up and engage with your platform out of curiosity. The real challenge is retention.

It demands aggressive digital marketing strategies, affiliate programs, influencer partnerships and loyalty schemes, which can raise the costs of business operation. 

Even initial marketing budgets for iGaming businesses can range from $10,000 to $50,000 or more per month. When you lean into this aspect of business building, you’re likely to focus even more strongly on how to attract investors for iGaming business.

Sending the Right Signals

Angel and seed investment into your iGaming business can send the right message to the industry and future investors about the state of your business.

It lends credibility and faith. By having known faces and names in the online gambling community help you launch the venture, you can certify that your online gambling business plan is well-structured and growth oriented.

Steps to Attract Investors for iGaming Business

Investing in online gambling comes with a set of pre-requisites. Investors look out for certain indicators that reflect stability, clarity and higher chances of success.

Create a Business Plan

You must have a compelling, well-structured plan for initiating and then scaling up your business.

This means having the following: 

• A well-defined strategy to begin operations, including a clear timeline of building basic infrastructure required to get the venture off the ground.
• A set of processes which ensure the smooth functioning of day-to-day activities, one-off requirements and crisis management situations. In-depth standard operating procedures (SOPs) must be shared throughout the organization so that every member is aware of their responsibilities, and acts accordingly.
• Documentation regarding compliance norms that are adopted and followed across the enterprise will give any investor a good insight into the competence and foresight of your venture.
• Revenue projections and a plan for achieving profitability is a must. What this tells prospective investors is that you’re clear-headed about your business, and you have a vision aligned with ground realities. Here it is crucial to factor in the irregular challenges that can arise and make achieving set targets harder than it already is.
• A growth timeline which details key milestones in the form of metrics such as ARR, MRR and ARPU to be achieved in six months, one year, two years and so on.

A simple and easy to understand apparatus will give investors confidence about your vision, mission and direction. It’s a critical step in obtaining funding for your iGaming business.

Demonstrate Market Traction

It is not enough to just have a product and make it functional. Doing the right things without any results will not draw the interest of any credible investor.

Your usership numbers should be clear and growing. That’s one way to show the market acceptance for your product. But this is not the only route.

Here are some methods to showcase this:

• User reviews from players who have used your platform give you clear insights for improvement. They also showcase appreciation for aspects of your business that were engaging and pleasing for members of the target group.
• Testimonials allow investors to see the entire spectrum of experiences real people have on your platform. This indirectly indicates the future prospects for it, and the growth potential of your iGaming business. 
• Sales numbers such as user acquisition, churn rate, retention numbers and so on clearly lay out trend for your venture. Are you able to bring players back? Is the acquisition cost for new users too high? It’s all going to be in there.
• Development milestones for your product are practically certificates that show the ability of your product to improve and grow. It also reflects the ability of your team to identify and implement changes as per market reactions and requirements.

Demonstrating market traction indicates that your business is not just an idea but a growing entity with potential for success.

Identify Areas of Concern 

In the middle of examining how to attract investors for iGaming business, you must examine what you need investment for.

Any knowledgeable startup investor will wish to examine which aspect of your business functioning needs support. 

The most common aspects of an online gambling business which require comprehensive revenue support are:

• Licensing and regulatory approvals require some hand-holding and guidance, especially if you’re a newbie to iGaming. 
• Game content and software integrations come with monthly and annual costs for businesses. These can be quite hefty, depending mostly on the kind of deals you’re able to strike. Even in the best case scenario, this type of cost may require support.
• Talent acquisition is one area which can lead to a high fixed cost to be borne by your iGaming business. Within this specialized field, it is harder to find the right talent in your operating location who can offer invaluable skills to your enterprise. And if you do find them, hiring, payroll and appraisals will be a continuous expense.
• Data analytics and business intelligence will need to be developed to ensure the business scales on schedule. Earmarking a separate expense for this aspect will give you breathing room for when they become non-negotiables in standing out to the target audience.
• Localization is an emerging area of implementation in online gambling. Since niche audiences respond most effectively, they must be targeted — and that can only happen when you’re communicating with them in their language, using phrasing that appeals to regular folks. Which means AI alone won’t be much help.
• Expansion also takes funding. One area of operation may be manageable for most startups. But if you need to expand rapidly or build a user base in multiple geographies, you’ll need to set in place operations to get it off the ground smoothly. 

Outline Funds Required

The next logical question is: how much do you need?

As simple as that sounds, it is one of the major issues that can get investors on or off your side. Any investor will wish to know how much money they need to set aside for your enterprise, keeping in mind the rate of return on investment it is likely to give them.

While delineating operational aspects which will require external funding support, make sure you capture the level of support required for each of them so you can get a fair idea of the amount of funds you need to raise.

Investors look for founders who have this level of clarity while fund raising. This ensures the economics on what makes your business the right choice for them are clear. It also establishes a basic level of accountability for you, as a founder, to put your 110% into the business.  

Work on Your Digital Marketing Strategy

The Basics of Building an Online Presence

Online reputation building is now a crucial differentiating factor in which business secures how much funding.

You might be out here wondering how to attract investors for iGaming business, while the said investors are clueless about your existence.

Online gambling investment options may be a dime a dozen. But how will an investor know you’re a legitimate iGaming business, with real operations, a functioning setup and actual employees?

The answer is obvious: your digital footprint will declare this.

First of all, develop a website. This should be informative, easily navigable and optimized for search engine rankings so your business may be easily found.

Your presence on certain media platforms is a must. Here are some of the basics you can cover:

• Linkedin – If your product updates, business milestones and hiring updates are not being shared on the professional platform, do you even exist?
• Instagram – You’ll find a lot of industry veterans and users on the platform. This means you need to be there and you need to have an active presence, while regular posting and an updated profile.
• Twitter – Looking for somewhere to carry out byte-sized engagement with users directly? Or need reviews from real people engaging with your platform? That’s where you will get it.
• Facebook – This platform is a must if you’re going to be running PPC campaigns for your business. Also need highly engaged audiences? There’s nowhere better.
• Discord or Twitch – Anonymous platforms allow users and industry folks to freely interact about taboo subjects, which may bring harsh judgement from people they know. That’s why they go to these platforms. And that is precisely why you need to be there too.
• Spotify – If you’re a consumer facing iGaming business, you need to explore new avenues for reaching out to your target audience. Spotify is the newest addition to the digital marketing toolbox, and many major brands are building their presence on it — with great results!

The next step in your strategy is building public relations. The goal is to publicize developments within your organization, in your product and key milestone achievements for your venture, in general.

Advanced Level of Brand Building

Beyond basic presence, you need to make sure your venture is easy to find for those looking around. Here are some ways to achieve this:

• Business listings like Google my business bring visibility and credibility to your operation. Make your enterprise easy to find and vet, so that fund raising doesn’t become any harder.
• Directory listings are a crucial part of the discovery process for investors. If you’re a technology provider, for example, G2 is the place to be. Similarly, there are sites where businesses operating in particular sectors of the industry can be found.
• Event invitation lists must bear your name, along with names of representatives from your company. Industry events are excellent places to meet potential investors and secure their interest in your organization.
• Sponsorship for events are highly sought-after once your business accomplishes certain benchmarks of revenue and performance. This will allow investors to also see you as a solid player in the industry.
• Webinar panels for industry-related sessions, either online or in person. This way, the vision and mission of your company can be highlighted through spokespersons. The panels with the best product-fit can bring you the right investor audience, easing your efforts in having to look for them yourself.

Another way to boost visibility is through leadership branding. This means the C-suite level people — the key decision makers —- must be your most outspoken advocates. They should be present on various platforms, with clear thought leadership, branding of their own and a unique voice on all matters iGaming.

Here’s how this helps: through networks of their own, they can highlight the cause of your business, and acquire funds to fulfil the needs of the business.

A key aspect of figuring out how to attract investors for iGaming business is prominent visibility. Don’t just be seen. Be heard too, and let others hear about you from credible sources.

Networking Within iGaming

People who are already within the industry — deeply embedded into existing business and regulatory structures — are the best folks to obtain guidance and direction from. Often, they are also gatekeepers of opportunities — funding, and otherwise.

There are a few ways to cultivate a network for investment needs.

1. Channel Partnerships

Look for businesses that operate paralelly to your own, i.e. in the same industry, but not as direct competitors. Tech vendors, platform developers, and white-label providers that work closely with both startups and institutional investors. 

If you’re using their services or attending their webinars, build relationships with their business development or partnership teams.

For instance, if your iGaming startup is powered by a major tech provider, ask if they know investors interested in funding operator clients. They may already have investor relationships they’d be happy to share with credible partners.

2. Attend Events and Roundtables

Be a part of events which expose you to affiliate veterans, former founders, and advisors who frequently connect startups with capital. 

While in-person events can be quite expensive to attend all the time, digital ones can be adopted for a more pocket-friendly approach. 

Add onto this experience by looking for opportunities to ask thoughtful questions, follow-ups on LinkedIn, or post-event discussions.

3. Hire Strategic Advisors

If you’re seriously preparing for a funding round, consider bringing on an advisor with deep domain knowledge and investor connections. Many former executives, affiliate leaders, or consultants offer their services on a temporary or contract basis to new and upcoming businesses that may be on the lookout.

How does this work?

Imagine: a former Head of Strategy from an iGaming company may advise your startup and bring in angel investors. Alternatively, they may act as a bridge, connecting you to VC firms that can help you with funds.

Summing Up

From start to finish, the challenge of how to attract investors for iGaming business can be an uphill battle for most startups in the industry.

For starters, you absolutely need to have strategic clarity, regulatory foresight, financial planning, and a strong brand presence. With high entry barriers such as licensing fees, platform development, marketing costs, and ongoing compliance requirements, external funding is often more than just beneficial. It is essential.

While traditional VCs may hesitate to engage with iGaming ventures due to regulatory complexities, that doesn’t mean capital is out of reach. Investors within the industry — seasoned operators, affiliate leaders, and domain-specific angel investors — are actively seeking well-prepared, high-potential businesses to back.

To get the right attention, your startup must demonstrate not just a compelling product or platform, but a clear roadmap, strong compliance, growing user traction, and a marketing strategy so you are sending out the right signal to potential investors.

But that is not enough.

Most importantly, you need to know where to look — be it through networking at industry events, tapping into advisor networks, or building digital credibility.