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EGamersWorld/Blog/The Cost of Developing a Poker Game vs. Buying a Turnkey Solution

The Cost of Developing a Poker Game vs. Buying a Turnkey Solution

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The Cost of Developing a Poker Game vs. Buying a Turnkey Solution

The game of poker has proven over time to be lucrative, not only for players but also for game developers. As a result, entrepreneurs now have their sights set on the online poker industry, seeking to get a slice of the profitable niche. But there's always a dilemma that slows down the game development process, and that's the decision to develop a poker game from scratch or buy a turnkey solution. Each option has its set of pros and cons, which every intending developer must consider carefully to know the best course of action.

1. Software Development Costs

To design a new poker platform, a lot of expertise is needed, including software engineers, UI/UX designers, and quality assurance testers. This team will ensure that the software has the right features and is secure. Development duration can take 12 to 24 months to complete and cost between $100,000 and $500,000. If mobile compatibility is a requirement, then more time and money would be required.

To save time and cost, poker game entrepreneurs turn to turnkey poker game providers. This option comes with pre-built software that has all the necessary features. The software is customizable, with a one-time licensing fee all for $50,000 to $150,000. With the purchase of the optimized software, launch time will take a couple of weeks, as opposed to months or years.

2. Licensing and Regulatory Compliance

To operate as an online poker service provider, you'll need licenses. To obtain them, you must consult with regulatory authorities. A license can set you back $20,000 to $200,000, depending on the licensor. Further challenges include proving your support of anti-money laundering, responsible gaming, and fair play, all which will add to your already steep expense.

A lot of turnkey poker game providers will help start-ups to satisfy all licensing requirements. Some poker softwares come already licensed. This will save you some legal expenses and time. In the end, the operator will spend far less and still get a platform that meets industry standards.

3. Server and Infrastructure Costs

To ensure seamless gameplay, an online poker platform will require investments in rigid server infrastructure. Its job will be to monitor gameplay in real-time. Operators will have to shell out anywhere from $5,000 to $50,000 monthly to pay for cloud services, according to the business size. For scalability, businesses must pay for extra servers to ensure high performance even during peak traffic.

Turnkey poker solutions take away the burden of cloud-based hosting and server management. With those sorted, the platform becomes plug and play, giving players access to games without delay. The operator will only need to focus on marketing and monthly hosting fees, which can range from $2,000 to $10,000.

4. Maintenance and Software Updates

Launching your own poker platform is just the first phase. Regular maintenance will be needed to keep the platform functional, and this isn't cheap. You'll need to keep a team of engineers on your payroll for regular updates. This doesn't come cheap, and will cost from $10,000 to $50,000 monthly. You'll also need to invest in various upgrades as new technologies emerge to stay competitive.

As part of the deal of using a turnkey poker solution, you'll get necessary updates and security without asking. These updates will come automatically and will ensure your platform continues to run smoothly. This option is also more cost-efficient, ranging from $5,000 to $20,000 monthly. With software stability guaranteed, operators can shift their focus to attracting players to the platform.

5. Revenue Model and Profitability

Having complete ownership over a poker platform will leave the operator in charge of all the profits. However, such a platform costs a lot of money to set up, and it may take a long time to break even. A major issue that causes this is the lack of reputation of the platform. Building credibility takes time, which translates to slow profitability.

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On the other hand, using a turnkey provider means you must be prepared to share revenue. Most providers have friendly revenue-sharing agreements, like 5% to 15% of all profits. Although you'll share your earnings, the lower startup cost will quickly lead you to break and profitability. This is the preferred model for a lot of businesses, as it reduces financial risk and sets you faster on the path to success.

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Bogdan Lashchenko

Bogdan Lashchenko - Content Manager bei EgamersWorld.Bogdan arbeitet seit 2023 bei EGamersWorld. Als er dem Unternehmen beitrat, begann er, die Seite mit Informationen, Nachrichten und Veranstaltungen zu füllen.

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