Online gambling houses can be cheaper than brick-and-mortar casinos, making them easier to access for both players and owners. This article will show you how much online casino owners earn.
Online casinos: Why should businesspeople open them?
There are currently between 3500-4000 online casinos. As of 2021, they make $56 billion in gross income (revenues). One online gaming house earns approximately $14.9 million annually in gross income.
Do all Internet casinos offer this level of service? No. No. The division estimates that 20% of the most profitable houses earn $44.8 billion annually or $59.7 million per casino. The remainder makes $ 3.733 million per year.
These numbers reveal the internal factors that will motivate future online casino owners to open new websites. No matter where you live, calculated money is attractive.
How do you make money online?
To make this picture more accurate, we’ll use the following statement: On average, an online casino makes $ 3.733 million per year or $311 000 per month (based on a previous chapter). What is the average daily income of a casino? Based on this figure, it is $10,370. This estimate is rough, and there are only stats for some online casinos. They are not publicly available. They are available in general, just like our marketing professionals.
But does the casino owner have any right to keep all the money? No. No. We’ll discuss them further below.
A businessperson must open a casino to make money. Opening a casino requires two initial costs: $500,00-200,000. These costs include:
White label casino or not (will royalty be included?
You are hosting costs and hosting costs for websites with high bandwidth. You can operate the website with thousands of connections per second.
The most costly part of a license is the most expensive. Curacao can give it as low as $20,000 or as high as 2,000,000 British Pounds for the UK’s most all-encompassing license. The permit costs $30,000 in actual dollars.
The licensor may require a licensed deposit or a guarantee fee. These fees could be anywhere from $10,000 to $10,000.
Connect with the most popular gaming providers to make sure your casino attracts as many players (NetEnt Microgaming and Playtech) and to make it even easier (NetEnt). Each player will receive approximately $5,000. These royalties do not include their monthly payments.
The first step is to deposit safety money to protect the enormous winnings of the players.
It needs a manager, support center, bug fixing, and development man to run the casino.
Advertising at the beginning.
How much do online casinos make?
Here’s the fun part. Look at the average casino’s monthly gross revenues of $311 million.
Gaming provider expenses. NetEnt Microgaming and Playtech each month take around $12K plus 15%-20% from all casino winnings each. They make up more than half of all casino games. The situation is different in different countries, but it is the exact same in English-speaking nations. So, 50%*311,000*20%=$31,100.
White label royalty payments (if applicable): 5% of revenues ($15.550).
Let’s assume we have $5,000 to cover personnel expenses.
Hosting and maintenance of websites: $5,000
Affiliate program. This could be either a CPA, a flat fee to bring in new customers, or RevShare, an ongoing payment that the customer brings to this casino over his lifetime. The terms of an affiliate program can affect the expenses. For calculation purposes, let’s assume that 25% RevShare is used.
Advertising is a way of attracting people. $20,000 per month is enough to ensure steady customer flow.
In-house promos. These promotions include tournaments, prizes, and offers for new players. They are $100 per month for active players. The attached wager will return 90% of that amount to the casino.
Good customer support service. For a small casino, remote support will run you around $10,000 per month.
Other fixed expenses: $5,000
What are the results?
Different statistics have shown that an average player at online casinos loses $900 annually. This amounts to $75 per month. This would mean that 4146 players could generate $311,000 each month. Imagine a casino that attracts 200 players each month who deposit. CPA from them would be 200*900*25%/12=$3,750 a month.
This would give you 4.146*100*10% = $41,460
Let’s now look at all the costs.
311,000-12,000-31,100-15,500-5,000-5,000-3,750-20,000-41,460-1,000-5,000= $171,190.
A casino online that generates $311K in monthly gross revenue will make a profit before taxes totaling $171.19K. This is a 55% profit margin.
This is not the end, as you might have guessed. The casino owner must pay taxes and annual subscriptions to keep their license active. These depend on the location of taxation and how the permit is issued. A legal company can cost as much as 60% to run. People often live in the most affordable country, such as Aruba or Sint Maarten. This can reduce the cost of your license even more. A $15,000 annual permit is required.
Conclusion: How to make money at a casino online
Online casino owners have a huge opportunity. Based on numbers and surface analysis, 55% ROI is the best deal among many businesses. This applies to all casinos. However, newcomers should understand that they will only be profitable after the first 1-2-3 years.