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Online Casino Revenue: Invest in a Profitable Business

Online Casino Revenue: Invest in a Profitable Business

Online casino earnings are legendary. Indeed, there are virtual clubs that bring millions to its owners, because the gaming industry as a whole enjoys its boom. If to speak about the average web resources, not all of them are successful. Novice operators have to make a lot of effort to survive in a competitive environment and start to earn decent money.

Open an online casino & start earning decent money

The situation in the gambling market is ambiguous. Specialists of Gaminator studio offer to find out what is the real profit in the online casino and what expenses are expected by businesspeople who have decided to open their own business in the sphere of gambling.

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Content of the article:

1. Sources of Income of Gambling Resources

  1.1. Types of Earnings on Gambling Games

  1.2. The Income of Poker Rooms

2. Calculation of Costs During the Preparation of a Business Plan

3. Risks that Increase the Expenses of Online Casino

4. How to Increase the Profitability of a Web Casino: Approved Ways

  4.1. Step-by-Step Instructions for Operator

5. Conclusion

Sources of Income of Gambling Resources

Web venues earn thanks to the losses of visitors. The more money each gamer leaves, the higher is the income of the Internet casino.

Types of Earnings on Gambling Games

There are two main ways in which gambling websites ensure their profits:

  • the decline in payout coefficients to players;
  • reducing the probability of users wins.

Steadily working casino brings considerable income to the owner, because in each game initially laid the benefits for the establishment. The average resource with quality entertainments and competent marketing strategy has a turnover of at least 300 thousand dollars. 

The Income of Poker Rooms

When it comes to the card games, there are a few sources of the establishment’s income:

  • rake from each bank;
  • monthly charges;
  • registration fee on the portal for participation in tournaments.

Usually, poker rooms pay off within 3-4 months and start to bring profit to the owners. At first, it is about 13,000 dollars, and then this amount is gradually growing.

However, everything is not as rosy as it may seem at first glance. In addition to revenues, casino operators also have huge expenses. Online gambling business should start with detailed preliminary planning, and even better — with the advice of experienced professionals, otherwise unpleasant surprises are guaranteed. 

Calculation of Costs During the Preparation of a Business Plan

How much an online casino earns?

It is impossible to accurately determine how much an online casino earns, but you need at least approximate amounts to prepare a business plan. Operators usually focus on payback for one year and use averages for calculations. They can be represented as a table.

Item of expenditure

Approximate amount

Launching of own business, registration in offshore

33 000 euros

Payment for the services of an affiliate manager and hired staff

From 15 000 euros per year for each employee

The minimum cost of the franchise, if the casino operates within the White Label program

3 000 euros per month (if the turnover is less than 50 000 euros; the amount is fixed)

From 6% and higher (if the casino earns more than 50 000 euros; the percentage of payments depends on the initial terms of the contract)

Payment systems commission fees

3-4% for deposit replenishment and 1-2% for withdrawals of funds using foreign operators Skrill, Neteller

10% for deposit and withdrawal of money via Qiwi, Yandex

2.8% for the replenishment of the account from bank cards

The practice has shown that operators spend about 48,000 euros in the first year of operation. In addition, they have to pay interest to the creators of slots and payment systems, and in this case, the amounts are difficult to calculate, because they depend on the costs of players.

Gaminator experts advise when preparing a business plan to focus on the total loss of gamers in the amount of 145,500 euros per year (at least 12,000 euros per month). If to consider that it is necessary to create mirror sites for work in the CIS countries, then for break-even work the players should monthly leave in the casino from 15 to 20 thousand euros.

Risks that Increase the Expenses of Online Casino

Opening own business, the entrepreneur must be aware that at any time can occur an event that can dramatically increase expenses. We have compiled a list of the most frequent unexpected expenses.

Possible contingency

Aftermath

Big winning of one of the players

Sooner or later, one of the players hits the jackpot. In this case, the operator has to add money to pay the winnings. Most often it happens if the casino is equipped with slots with high variance, for example, Netent or Playtech

Zero profit in online casinos

Gambling business does not immediately generate income, thus in the first months, operators who do not have reliable partners may not earn anything. It does not save them from paying the franchise so that the casino can “go into the red” for 3 000 euros or more

Blocking affiliates of the CIS by Federal Service for Supervision in the Sphere of Telecom, Information Technologies and Mass Communications

If the affiliate is blocked, it stops to deliver traffic to the partner’s website, and it leads to losses

It is possible to reduce the risks if to contact the Gaminator studio. The company’s specialists will recommend proven methods of doing business in the field of gambling.

How to Increase the Profitability of a Web Casino: Approved Ways

Increase the Profitability of a Web Casino

If you launch a gambling project yourself, then at first the profit may be minimal. It is even possible that the expenses will significantly exceed the income of the online casino. You will have to work on ways to attract and retain players, to learn how to motivate them to make high bets. It is necessary to study the target audience, choose high-quality entertainments and improve the level of service. It may take more than one month.

Step-by-Step Instructions for Operator

There is a proven methodology that can significantly increase the income of online casinos. Its essence lies in the organization of effective advertising, but since it is difficult to do it directly because of legislative restrictions, operators have to use a multi-way scheme.

The algorithm of actions is as follows:

  1. The search for partners. The owner of the Internet business needs to find a website of the game theme and agree on the promotion of their own project. It is better to choose resources on which advertising is relatively inexpensive.
  2. Data collection. You should carefully analyse the results of your campaign to make sure that your ad matches querying of search engine.
  3. Adjustment of marketing strategy. If the advertising campaign was not effective enough, you will have to change the methods of promotion. In this case, you could use some help from specialists.
  4. The constant search for new partner websites. Casino operators spend almost half of their income on advertising, and it is impossible to stop because the gambling industry is a highly competitive sphere. If you do not work on attracting new visitors, the business can become unprofitable.

A reasonable solution is to find a company that is professionally engaged in the promotion of an online gaming business, and entrust it with the development and implementation of a marketing strategy.

Gaminator studio will become a reliable partner and will help to achieve your financial goals. Our employees are well versed in the tools that allow you to significantly increase the profit of the online casino and will do everything possible to develop your web resource. 

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Conclusion

The gambling market is a quite changeable and competitive environment. Even an experienced businessman is not easy to navigate the trends in time to track promising new technologies. We offer a comprehensive solution — the launch of a gambling project with a guarantee of payback within six months.

Gaminator studio employs specialists with extensive experience in developing successful web portals. We know everything about gambling and are ready to share this information with customers. Turning to us for advice, you will understand due to what and how the online casino pays off. Our experts will recommend simple and convenient schemes for launching a profitable project.

We will help you to make a competent business plan, develop a website with a unique design and fill it with high-quality gaming content from the best manufacturers. If you are not ready to make a final decision, test our products by installing demos. You can also order a marketing promotion service and even instruct us to process your users’ requests.

Gaminator studio will become a reliable business partner. Let us work together to earn on gambling!

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