Making Money Off of Gambling Establishments: Monetisation of Such Projects in 2021
Although it has been said that the casino always wins, this is not always true. We offer you to find out how profitable the turnkey casino business really is.
Specialists of our company will tell you about the methods of calculating the profits of a gambling project and increasing the earning capacity.
According to the report of Brandessence Market Research and Consulting, the casino sphere has a CAGR of 7.91%. By the end of 2026, market capitalisation will reach 7.742 trillion dollars.
The COVID-19 pandemic has made its adjustments, increasing the traffic of gaming sites by 3% in the first months of 2021. At the same time, the sports betting sector continues to dominate the gambling industry: 54.23% of the total turnover is accounted for by it.
The rapid growth in the profitability of the turnkey casino sector is explained by the following factors:
- Availability. With the development of IT technologies, games for money have become available to any adult internet user, regardless of the geolocation. Moreover, in 2020, mobile traffic exceeded the volume of desktop requests for the first time, bringing 52.08% of the total number of users to the market. Another advantage that a turnkey online casino can boast of is that since last year, gambling products can be legally sold in Google Play stores in 18 countries of the world.
- Confidentiality. Any modern turnkey casino is equipped with interactive security programs and user identification systems. You no longer need to pass a complicated multi-level registration on the website — it is enough to verify your identity via social media widgets or place an anonymous bet without providing personal data.
- Large selections of products. Even if you decide to buy an online casino with games from one provider, the range of offers will still be bigger than any land-based establishment in the world can have. Moreover, the catalogue can be expanded at a moment’s notice since modern integration protocols allow you to do batch loading in a matter of minutes.
- Multicurrency. Offline gambling establishments rarely accept more than 2–3 types of currencies. The creation of a gaming site allows users to make payments in any fiat and electronic money. Moreover, transactions can be conducted regardless of the geography of the platform.
- Free game. No land-based casino can offer free access to slots or card tables. In an online mode, users can play even without depositing funds. Demo versions of any turnkey casino solution of this type can be found in the catalogues of almost all popular providers.
The launch of a virtual location, like any other project, is impossible without special indicators that show the effectiveness of work and allow you to find paths for further development.
Profitability visualisation parameters of a gambling startup
The way of calculating the gross income of the project: the size of deposits minus the winnings that were paid.
The indicator shows the number of proceeds until the company pays off operating expenses and other costs
This indicator can be used to evaluate the effectiveness of the business strategy. It reflects the total revenue after the deduction of all operating expenses (from bonuses to licence fees and royalties)
Net income in relation to the size of deposits
It determines the percentage of the platform's income from the actions of users and shows the sum, which reflects the active turnover of the company
The cost of attracting the target audience
A multicomponent parameter that displays the expenses of a casino for the attraction of one active client (a user who followed the advertising link, registered on the website, and deposited money)
Profit per user
The marker determines the total revenue from each specific gambler who enters the gaming site in a certain period.
A calculating formula: revenues of the casino divided by the number of active users in a given period
Lifetime customer value
With the help of this indicator, it is possible to calculate the total revenue per user for the entire time of his activity on the website.
Marketing programs are aimed at increasing the performance of this particular aspect.
Specialists work towards 2 directions at once:
Working within the legal framework, operators must meet the obligations of meeting the following expenses:
- commission fees paid to the providers — about 15% of the casino's profit;
- payments to financial intermediaries (payment systems) — about 5% of the amount of each transaction;
- mandatory fee for working under a franchise agreement (in case entrepreneurs choose such an option) — the size of deductions depends on the policy of the franchisor;
- commissions of affiliate networks and partner programs — about 30% of income from each attracted customer.
Taking into account these indicators and the required expense items, you can calculate the approximate profitability of a gambling project. For example, with 100 dollars as a burnt bet, after deducting all commissions and operating expenses, business owners can receive no more than 40 dollars.
In percentage terms, net profit is about 30–40% of total income. Moreover, from the received amount, operators also pay salaries to staff, as well as taxes established by the regulator and advertising costs.
As a result, the net income from a bet of 100 dollars is about 12–15 dollars.
Taking into account the above-mentioned scheme for calculating profits, the main task of entrepreneurs is to maximise the traffic of their gambling establishments and raise the average spend per session.
To get a stable positive response from the target audience, experts of Online Casino Market recommend businessmen to use the following tools:
- SMM promotion. A program to drive traffic through social media platforms. This approach allows you to build trusting relationships with the audience, quickly analyse the needs of gamblers and adapt to them.
- SEO optimisation. An internal configuration of the website structure for its indexation by search engines. With the right approach, the platform will reach the first positions in search results in about 4–6 months.
- E-mail newsletters. A convenient and inexpensive tool that allows you to work with already interested users who have voluntarily agreed to receive news or special offers and to the processing of personal data.
- Affiliate marketing. From us, you can buy the best turnkey online business with built-in affiliate services and customise the compensation scheme at your discretion. With the right approach, participation in affiliate programs will bring a stable increase in customers and allow you to raise the average check per game.
- Loyalty programs and bonuses. These can be welcome bonuses, various rewards (free spins, increased multipliers, personalised bets, etc.), access to private events, and much more. With the correct development of the program, operators practically do not lose anything: prize funds of the tournaments can be formed from the participants' bets, and in order to wager bonuses, users will have to carry out a special task (for example, make a deposit not less than a certain amount of money or play a certain number of games).
The main schemes of increasing the profit of the gaming business are based on the decision to build traffic. Among other techniques that can provide a positive return on investment, we can name:
- Optimisation of financial processes. The program involves the reduction of operating costs and redirection of capital to other niches. For example, you can analyse partnerships and choose more cost-effective systems, renegotiate agreements with banks or start cooperating with little-known but promising developers.
- Expansion of the functionality of games. You can scale your business in different ways. For example, add to the website a new section with live games, lotteries or sports betting, implement a mobile application or launch a franchise program with a partial assignment of the right to use your brand.
- Increase in the size of commissions. It is not the most common and popular solution, which is most often used in online poker rooms. At the same time, operators must strictly monitor compliance with the balance and, with a change in the percentage of payments, offer its customers new online casino software solutions.
Such an offer as the turnkey casino website for sale is a reliable and promising investment that can bring entrepreneurs thousands of dollars as the net income per month. The most important thing is to develop the right strategy and select the optimal set of tools to build traffic.
- Special financial markers (indicators of gross and net income, revenue from each casino visitor, and the lifetime customer value) will help to evaluate the company's profit.
- The approximate net income of the casino is 12–15 dollars with a placed bet of 100 dollars. The amount is calculated taking into account the payment of royalties and other operating expenses (commissions to partners and developers, salaries of staff, etc.).
- To increase the profitability of a casino, you need to work out an effective marketing strategy. The program should include the best promotional tools: SEO optimisation, the use of social networks, e-mail newsletters, and regular updates of products and bonuses.
Experts of Online Casino Market will not only advise you on how to open an online casino with a minimum initial capital but also how to develop an effective business strategy with a guaranteed payback in the first year of operation and purchase high-quality turnkey casino software.
From us, you can order:
- ready-made gambling projects on a turnkey basis;
- mobile platforms;
- live casinos;
- bitcoin casinos;
- betting software, and much more.
We are always kept up-to-date on the latest market releases and ready to implement a project of any level of complexity!
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