Online Casino Profit: Advantageous Investments with 2WinPower
3.1. Initial Investments
The gambling industry is a fast-paying back and profitable activity. According to statistics provided by the independent consulting Agency H2 Gambling Capital, over the past year, the industry’s revenues exceeded 44.1 billion euros.
In compliance with forecasts, by 2023 the turnover of the gambling market will increase by more than 80%. Taking into consideration the trends, the profit of the online casino can be several hundred thousand dollars per month. The main thing for the operator is to develop the right business strategy and allocate the investment budget wisely.
High profit of online casino is associated with a lot of factors, among which can be distinguished:
- Availability. The player can run a favourite entertainment, regardless of geographical location or time of day. The only thing that is necessary — a personal computer or mobile device with access to the World Wide Web.
- Anonymity and confidentiality. No multi-level identification procedures: registration on the portal takes no more than a couple of minutes, enough login and password or login through a social network account, and personal data of customers are stored on secure servers.
- Variety of gambling entertainments. Even a novice operator of online gambling business can offer customers in order of magnitude more entertainments than the largest land-based casinos in the world.
- Multi-currency support. If offline establishments are able to accept no more than two or three types of banknotes, virtual services offer payment processing services in almost any currency of the world.
- Free games. Demo mode can be used as a training course or a great way to spend a good time without the slightest risk of losing money.
- Constant updating. The ground-located industry simply does not keep up with the virtual sector. If the in the largest offline casinos still dominate “one-armed bandits” and their various interpretations, the Internet business pleases with creative innovations: slots with three-dimensional graphics, storyline and skill games, live broadcasts, tournaments, virtual reality and many others.
As mentioned above, the gambling business is breaking records in terms of development and investment volumes. Today, this niche is recognized as the largest factor of influence on the world economy.
When it comes to the structure of the market, the income of online casinos can be distributed as follows:
Classification of profitability of online gambling
The name of a branch
The approximate amount of profit
Betting sector (betting on sports and artificial events)
20,1 billion euros
Online games of chance (slot machines, cards and table entertainment, live broadcasts, other)
10,6 billion euros
Lottery draws of commercial and state types
3,9 billion euros
Poker (dealer sessions and tournament competitions)
2,4 billion euros
Logical entertainments and skill games
1,9 billion euros
Lotteries, bingo and other draws
4,4 billion euros
One of the indisputable rules of the gambling industry: the income of online casinos is confidential information and is not subject to disclosure. None of the existing institutions will provide open access to information about the amount of earnings, so the only thing that should be focused on is the approximate figures based on the overall estimates of the industry total annual profit.
Regardless of the gaming platform format, certain rules for the funds' distribution apply to operators.
This segment can be divided into several separate categories:
- Statutory fund (mandatory amount to ensure the continuity and stability of payments to users of the service).
- Reserve (part of the capital, aimed at ensuring unforeseen expenses of the website).
- Capital to support the internal processes of the service (this is part of the revenue from which the current needs of the operator and maintenance of the platform are paid).
Regardless of how much the online casino earns, the operator undertakes to pay the following expenses:
- commission charges to the manufacturer of gaming content (approximately 15%);
- percentage deductions to payment systems for user deposits (about 5% of the transfer amount);
- royalties (percentage deduction in case of lease of the finished product in accordance with the franchise agreement);
- payments to affiliates (about 30% of the service revenue from each attracted player).
Taking into consideration all the above factors, it is possible to calculate the approximate profit of the operator. For instance, with a burned deposit of 100 dollars after all commissions and contributions, the owner of the website receives “net” no more than 40 dollars. Accordingly, the approximate percentage of establishment revenue from the loss of each client is no more than 30-40%.
From that percentage, the operator pays:
- taxation deductions;
- the salaries of the staff;
- partner share;
- cost of advertising promotion;
- incentive bonuses for active actions on the web venue.
As a result, the net income of the casino from the lost 100 dollars does not exceed 12-15 dollars. And if the operators set a high value on an impeccable reputation, give a guarantee of honest and transparent work, then one of the most effective and reliable ways to increase revenues will be the constant growth of traffic.
The following tools can be used to promote gambling websites:
Despite the active struggle of social networks with casino advertising, pages, groups and advertisements on the pages of popular bloggers have been and remain more than an effective way to attract new investments.
If to consider the statistics of traffic growth through social networks, the situation is as follows:
Gambling traffic from social media
Title of network
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Telegram casino and chatbots are a relatively recent trend that has already demonstrated its effectiveness. One of the main advantages of this platform is the complete lack of advertising. A number of tools are available for the collection and processing of statistical information.
Despite the absolute effectiveness of the method, SEO-optimization requires significant time. As a rule, it takes 4-6 months to achieve the result.
One of the platform features is videos about specific establishments, videos with descriptions of the gameplay and any news related to the gambling industry are considered as an entertainment sphere and are not equated to playing for money. Accordingly, the casinos own channel or advertising on the portals of popular bloggers is not blocked as well as not subject to sanctions.
As it was mentioned earlier, the main ways to increase the profitability of online casinos are based on the increase in Internet traffic. Nevertheless, the return on investment can also be provided by other methods:
- Cost optimisation. This rule works in all areas of business, including gambling. The reduction of expenses in one direction and their redirection to other niches is a great strategy that always works and increases the net profit. The first recommendation is to renegotiate the signed deals in favour of more easy terms for the company. Consider cooperation with such business partners as payment operators, banks, software vendors, and developers of the game content.
- New approaches. You can, for example, launch the live casino option. This is an interesting direction that always increases the money turnover of the online business. Another approach is business scaling. A successful casino can try on the role of a franchisor and transfer some of its rights to use its brand for a particular fee.
- Increased commissions. This is not the most popular solution, which is mostly used by poker rooms. In the casino segment, such types of gambling as roulette, blackjack, and the wheel of fortune can bring a good fee. At the same time, it is important to expand the range of video slots and always offering users stylish and dynamic releases.
The rapid development of the gambling market entails fundamental changes in the entire structure of the world economy. Own business in the gambling industry is rightly recognized as the most promising and profitable type of business.
Leave a request to our managers, and we will help in the implementation of gambling projects of any category. 2WinPower team will not only describe in detail how the online casino pays off, but will also provide a full set of tools and products for the fastest possible return of funds, multiplying investments.
The range consists of entertainment content for every taste, ready-made gaming platforms from the world’s first-rate suppliers, casino engines of own development, services for the creation of exclusive projects and much more.
The advantages of cooperation with 2WinPower are the impeccable quality of each unit of products, a huge range of services for gambling business of any type and format and a guarantee of full payback of the online venue within 3-6 months of cooperation.
Do not miss your chance to become the owner of the most profitable source of income in the world and join the 2WinPower family even today!