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Author: Ivan Mostovoy08 june 2021
The online sector of the gambling industry has been existing for over twenty years but it is still at its height, and it is still considered to be the most popular and relevant area for investment. The migration of traditional gambling into the virtual world is a natural phenomenon of our time. And the main thing that attracts entrepreneurs is the fact that online casinos are extremely profitable.
However, a gambling business that is built only on sheer enthusiasm and loose calculations in the format of “how much money a particular slot will bring” and “how much money gamblers will lose” will not produce any good results. It is the haste and lack of attention to details that become the main reason for the fact that the gambling business can be closed during the first year of work.
Business on the Internet in the gambling field differs noticeably from any other online projects, and the reasons are not only unique payback indicators or innovative market trends.
The level of profitability of a gambling establishment is calculated with the use of special tools and indicators.
The profitability of an online casino: RoAB metrics
Gross revenues. The way of calculating: the size of bets minus the amount of the paid prize money.
This indicator is used to show the volume of burnt deposits before the deduction of costs of a casino
Net profit of the gambling establishment. It is calculated in the following way: gross income minus administrative and operating costs (bonus payments, payments to affiliates, maintenance of a license)
Net profit to the size of bets. The indicator captures the amount of money from a certain sum deposited by the selected user. The higher are the calculated parameters, the more profitable is the gambling location
The volume of the deposit. The metric is used to assess the money turnover directly during the game session.
In case of growth of the indicators, the gaming site, as a rule, spends too much money on the payment of bonuses
Conversion. The parameter displays the level of effectiveness of the attraction of users and is expressed in specific numbers: the number of gamblers who visited the website after the commercial in comparison with the number of visitors who did not take any action.
The metrics help to evaluate the return on the investment made on the promotion of the project.
For a full calculation of indicators, the following parameters are used:
Lifetime customer value. The parameter displays the amount of money that a particular player has brought to the casino during his activity on the website.
Calculations can be done with the following formula: the average revenue for a specified period divided by the total time that a player has spent on the gaming site
The customer outflow. The metrics show the number of users who left the gaming site.
If the indicator is minimal, it will mean that the level of profitability of the location is optimal
Customer acquisition cost. The indicator determines the effectiveness of investments made in the audience capture system.
To calculate the indicator, the following formula is used: the price of promotional marketing divided by the number of attracted customers for a certain time.
The situation is considered perfect when costs for advertising are fully covered by revenues from a new audience
Average earnings from a client. The used formula is as follows: the revenue of the casino divided by the number of active users for a fixed time
Despite the existence of a huge number of specialised tools, the only right answer to the question of which payback is considered normal does not exist.
The size of revenues depends on a wide variety of factors, among which, it is worth mentioning:
Another factor that can make a casino successful is gambling in the mobile format. According to statistics, today, the mobile market has about 60% of the consolidated revenues of global gambling. Moreover, experts predict that the industry will grow more than 80% over the next five years.
The success of a casino and the payback period depend on several factors, including the ways of working on the project and the nuances of its launch.
Just a decade ago, you could start an online business relying only on yourself. The task was accompanied by a lot of risks and difficulties — from huge time expenditures to full responsibility for all internal processes in the casino. Today, beginning entrepreneurs have more effective alternatives.
This is not the most reasonable solution, the main advantage of which is a low price. Operators, at their own risk, buy a “raw” code, which will need to be adapted to current needs. As a result, they will spend a lot of money on the update of a product, and there will be no guarantees of the “viability” of the purchase.
The gambling industry is the most competitive in the market. To sign an agreement with a competent and experienced company will be a convenient and simple solution for operators with minimal experience.
When choosing a franchise, you get a ready-made project with well-adjusted work algorithms and protection against large expenses in the form of jackpot payments. Also, there is no need to spend a lot of time on the registration of legal status — you can stop working in the gambling field at any time by simply breaking a contract with the franchisor.
The disadvantages of such a solution include the standard design of the project, the inability to adjust internal settings and the range of products at one’s own discretion, dependence on the license holder, and the need to pay a fee for being able to use the rented project.
It is the most convenient and easy way to build a profitable business and compete with the world’s flagships.
The service includes:
Tell us about your preferences concerning the design and content of the project, and the rest will be done by our team of professionals.
Ways to increase the profitability of an online casino are connected mostly with competent financial management ― the increase in the Internet traffic and reduction of the company’s expenses.
The growth of traffic affects the volume of the operational turnover of the online business. The more customers visit the gaming site and make deposits, the better profitability indicators can be seen at the end of the accounting period.
The increase in traffic depends on competent promotional marketing, which includes several effective directions related to the promotion of the gambling business:
The net profit depends not only on the operating income but also on expenses. These include fees to banks, franchise owners, payment systems, software vendors, and developers of video slots. To increase the return on investment, it is recommended to revise the terms of agreements and sign new contracts on more favourable terms.
Unique indicators of the profitability of the business are the main difference between gambling startups and any other form of business organisation.
Leave an application to the managers of Win Win Casino, and we will tell you what parameters require special attention and what actions should be taken to ensure that the business generates maximum profit.
One of the advantages of working with our team is that we not only provide services, with the help of which you can get a project from scratch, but we can also help you at any stage of your independent work. Our offer includes many specialised solutions for already existing locations.
Cooperation with Win Win Casino is a convenient and quick path to success.
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