Insurance in the Wake of Casino Mass Digital Migration

There are definitely some casinos which still exist exclusively in their traditional capacity as physical, brick-and-mortar facilities, but for the most part those serve a very specific geographically-targeted market, such as the various Native American casinos ranches you’d find if you ever visited that part of the world. A much larger percentage of casinos exist in both their physical and digital forms, most of these which have seen the need to join the race to establish online gaming avenues, while there’s an even bigger selection of casinos and betting platforms which exist entirely in the digital space.

So, with that in mind, taking into account just how lucrative the business insurance industry around physical casinos would have been, how are insurance companies adapting to the casino mass migration to the digital space? I mean surely there are less operational costs and overheads, with there no longer being a need for something like a big casino premises to be insured, along with all the associated valuables which would form part of the setup, like huge cash vaults and safes?

Registered premises

There is just no way the business insurance industry would just let go of what are essentially their big-ticket insurance clients who run casinos, so they’d make sure to follow them into the digital space in the case of them moving away from the traditionally large-scale brick-and-mortar run operations. Yes, there is more to insure if you run a physical casino, but purely digital casinos are so heavily regulated that they need to be operated like the real-world underlying businesses they actually are.

This means there has to be an officially registered office, and unlike with pretty much any other business, this cannot be something like the rented flat a one-man-operation director lives in. There really has to be an official staff which includes accounting officers amongst many others, so there’s plenty to have to insure by way of business premises and infrastructures such as the servers powering up the online casino operation.

Legal insurance coverage

If a typical online betting platform such as a casino were to rely on running-revenue to deal with the myriad of legal matters almost inevitably geared to hit it, it would be bankrupt very quickly as these legal costs are some of the highest around. So business insurers often offer coverage that can be paid as a monthly premium, only proceeding to hire legal professionals should there be a need for such representation.

Regulatory compliance coverage

When enjoying the betting and cash-out process on a platform such as Ole777, it can be very easy to take for granted what actually goes on behind the scenes to bring such a platform to the public and make it easy for them to place online bets and perhaps win some handsome sums of money. Regulatory compliance is big business for the insurers, which is why quite a large portion of an online betting platform’s operational costs budget flows in the direction of business insurers which offer this kind of coverage.