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How to Raise the Profitability of Your Online Casino: The Project Payback Increasing

How to Raise the Profitability of Your Online Casino: The Project Payback Increasing

1.Basic Casino Profitability Indicators

  1.1. Financial Indicators

  1.2. Proper KPI Management 

2. Internet Traffic Increasing for Gambling Projects

3. Cost Optimization

4. Conclusion

The return on investment terms is of great interest to most businessmen who decide to start their own gambling projects. The Gaminator experts will help you understand how to increase the profitability of an online casino. We will talk about the analytical profitability parameters, as well as about the possible ways to increase the payback of the platform.

Basic Casino Profitability Indicators

Increase the profitability of your online casino

In order to understand how to increase the profitability of your online casino, you need to understand the basic indicators of gambling business performance. The KPI evaluating method (Key Performance Indicator) is applied in this case. The parameter defines the key indicators of the Internet business profitability and helps to outline the steps needed for increasing the gambling profit.

Depending on the specifics, key performance indicators can be divided into three large groups:

  • financial;
  • human;
  • hybrid.

Operators are interested in the first category because it allows them to see a clear overall picture of the casino income growth.

Financial Indicators

Online casino payback indicators

Financial performance indicators include three key aspects:

Abbreviation

Name

Description

GGR

Gross Gaming Revenue

These are funds received from players without deductions. They are calculated as the sum of all customer bets, subtracting the winnings

If you draw a parallel with the online store, then this indicator will characterize the revenue, but not the final profit

NGR

Net Gaming Revenue

This amount consists of gross revenue without all operating expenses. They include license fees, the use of a franchise, the bank and financial system services, software, and technical platform rental

Bonuses and discounts are also related to casino expenses

NGR/SumDEP

The ratio of Net Gaming Revenue to the amount of deposits

 

This indicator illustrates the share of revenue generated from user deposits invested in online business

The higher this parameter, the more efficiently the platform

Analysing the table, we can understand that the payback of online casinos depends on two main factors, such as the amount of money spent by the players and the sum of transaction costs that paid by the operator during each period according to contractual obligations.

Proper KPI Management 

How to increase the profitability of an online casino? The answer to this question depends on the competent management of the above factors. The traffic increasing and cost optimizing (monthly or quarterly) is a universal approach that will allow you to bring your own business to a completely new level.

This rule applies not only to Internet traffic but also to other areas of gambling. Sports betting business works according to the same principle. 

It is essential to understand that indicators can vary from month to month for one or another reason that is not always dependent on the operator. For example, the income may be high during the Christmas season. However, it may decline in February and March.

In order to get accurate profitability results, it is important to consider all the parameters for a particular period (for example, six months or a year). It will help you understand the dynamics of profitability and identify steps needed to increase it.

Internet Traffic Increasing for Gambling Projects

The complex of methods aimed at attracting new users and retention regular customers is called a marketing strategy. Experts recommend ordering a high-quality marketing plan from professionals, for example, Gaminator. The client will receive a promotion campaign strategy for all communication channels and guaranteed traffic growth in the shortest possible time.

order service

The marketing strategy consists of the following areas:

  1. Promotion in social networks. The publication of advertising posts, relevant video reviews, and links to profitable offers contributes to the rapid growth of the Internet audience. According to statistics, the highest return can be brought by the full-fledged campaign on Facebook, followed by Instagram, YouTube, and Twitter. Useful posts on the VKontakte social network and on the Odnoklassniki website will attract the Russian-speaking audience.
  2. SEO optimization. This method can help you bring your resource to the top positions in popular search queries. High performance is achieved through internal site reworking, the publication of links and cooperation with external platforms.
  3. Affiliate programs. This technique lies in the interaction with affiliates. It has a positive effect on traffic size. A wide selection of partner solutions may allow you to develop a unique strategy that will benefit your website.
  4. Bonus opportunities. Loyalty programs contribute to positive dynamics in solving the problem of attracting new gamblers. Bonuses for the first deposit and activity, free spins, prizes for new participants attracting, VIP-programs, and other promotions are always perceived positively.
  5. CRM systems. This is an effective tool for improving the quality of platform management and user service. This approach allows you to organize all the marketing areas of your gambling business.

Cost Optimization

Increase the revenue of your online casino

Profitability can also be raised by reducing financial costs. As already mentioned, these costs are formed from the planned deductions to providers of gambling equipment and software, payment systems, banking institutions, affiliates, franchise owners, and other counterparties. In this case, the best solution is a phased overview of contracts and the signing of new agreements on more favourable terms.

Staff salaries and related taxes are the main expense items in the gambling industry. Thoughtful analysis of the staffing capacity and the transfer of some functions to outsourcing services (for example, accounting, legal support, or advertising) will help you free up a significant part of working capital.

It is worth remembering that the optimization of some costs does not depend on the operator. These are tax deductions, gambling licensing fees, contributions to financial guarantee funds. Such directions constitute the lion's share of the resource budget and can be reduced only due to the changes of the legislative framework of particular legal jurisdiction.

Conclusion

The payback of a gambling project depends on two main factors, such as traffic growth and reduction of current costs. Competent management of these two components will increase the profitability of the business and bring it to an absolutely new level.

You can buy a ready-made online casino with a high profitability level from Gaminator. We offer a full-fledged solution that will bring a decent profit in the shortest possible time.

The customer will receive a product with high-tech software, well-thought-out functionality, and an extensive library of casino games. A competent marketing strategy, as well as legal and technical support, will contribute to the high self-sustainability of the project.

You can purchase poker and betting software, affiliate programs, and order the development of online slots using HTML5 technology from Gaminator.

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Contact our managers to get a detailed recommendation on how to make your gambling project the best one in the chosen area!

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