The casino always wins. True? How much?
Nowadays, the gambling industry is one of the fastest-paying and most profitable activities. The frequency of new online gambling establishments is incredibly high. According to statistics, it appears almost every month. But what is the reason for such frequency? The answer is quite simple – profit. However, the number of online casino’s income is still unknown, mainly because of the reluctance to show its incomes. To get an answer to this question, firstly – it is necessary to figure out the list of participants (who visit this platform).
Global Gambling Industry
A medium-popular gambling establishment has about 200 thousand registered players of various ranks and incomes. From the list, for example, only 10% (20 thousand visitors) play daily, and 30% visit the institution several times a month. It can be concluded that the first group makes the minimum profit for the casino. The rest of the visitors generate extra income.
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Monthly costs of running an online casino
To get an approximate amount of casino winnings, it is needed to understand the costs that go to the maintenance of the casino.
It is a very important aspect of the productivity of casino site. Its main task is to attract customers to visit it. The webmaster, who is the chief of his own site, subscribes to the casino affiliate program. He advertises the casino in order to get a commission from each player. This commission is formed in two ways. CPA method (cost per acquisition) – for each invited client who makes a deposit, the affiliate receives a set amount of money (on average from $ 25 to $ 500). Using another method, called Revshare (revenue sharing), means, that the affiliate gets an interest in the player’s losses (about 25%). If an affiliate attracts a player in a casino and that customer makes a monthly deposit of $ 5,000, then if the partner loses money completely, the partner receives a commission of $ 1250 each month.
One of the biggest parts of an online casino expense is software rentals. On average, renting quality software costs $ 8,000 – $ 12,000 per month
Here, the situation is a little simpler here. Basically, costs range from 10% to 20% of total slot machine revenue.
Here, the situation is ambiguous. It is necessary to understand the difference: if Western payment systems (Skrill, Neteller) take about 3-4% for depositing money and 1-2% for withdrawal, then Qiwi and Yandex – 10% of the deposit amount. Summing up, depositing and withdrawing funds can cost from 1 to 10% of the amount.
This includes sponsoring customer support services, developing promotions, finding partners services, and so on. In general, the average amount of money that is paid to one employee of such services – from $ 1000 per month.
Financing brand franchise owners, creation of mirrors, etc.
And the Final Numbers are…
Taking into account all the reasons for the monthly costs, it is still very difficult to provide a completely accurate estimate of the monthly earnings of an online casino. Nevertheless, it is enough to say that even with the big costs related to running such a business, online casino sites are making a lot of money. It is possible to speculate the approximate amount of earnings slots, roulette, and other gambling entertainments, only because of basing on average statistical data. According to statistics, in popular establishments, the monthly deposit amount is 15-20 million dollars. Paying attention to the above-mentioned costs of running, the income of the casino owner is about 600 – 800 thousand. If he owns several casinos at once, his profit will be over 10 million.