How much money does an online casino make?
Many investors who knew about the casino business decided to open their own online casino. Their calculations are based on simple numbers only: how much money players will gain and lose. This article will discuss “pitfalls” and business plan and “How much money does an online casino make?” The question will be answered. By examining the opening of licensed white-label online casinos, we will see that franchise studies are a much more convenient and fast option than opening their own game houses, and scenarios are a thing of the past.
Let’s try to define a few terms to use in this study:
- The deposit is the amount of money that goes into the player’s account. The payout is the amount you receive for a player’s payment system.
- GGR is the total deposit calculated as the total deposit excluding the payment amount. At the same time, it does not matter how much is entered by the operator. Also, this option does not differentiate between bonuses and real money rates. As a rule, game developers have to pay their commissions from this parameter.
- NGR is the player’s net income. This parameter already takes into account costs. (Total deposits) – (amount paid) – (bonus amount) – (manager Fe amount (as a rule, paid payment systems)).
- Payment by the copyright holder. This is done every month.
- A negative balance means a situation where the players win more than they lose and the casino has a net loss. This happens much more often if you have small players and a large one. If a winner is lucky and does not lose all winnings, you actually pay the players their own money, not just the payment systems and royalties for the franchise.
- Affiliate (partner) are sites in casinos earned through affiliate programs. You will attract new players to your casino with their own help. The flow of players affects traffic. In 2017, many affiliates were charging a fee (300-2000 Euros) to add to their website.
Before getting started
The actual costs you have to pay before starting work:
Payment for the establishment of a casino (approx. 15,000 Euros. This includes two providers of games.). Payment (approx. 5000 Euros) for the design of a unique template. Payment for each additional software provider game (Netent, Microgaming, Yggdrasil, etc.). The price varies, but we can say that large operators will cost you 5,000 Euros (small – 2,000 Euros) on average. Insurance payment by which the franchisee will cover the players’ earnings. This amount can range from 5000 to 10,000 Euros. In total, you will have to pay around 30 000 Euros before starting work. It should be noted that some of the franchisees require official firms to open for calculations and the money is ready to be sent to their personal Skrill account. The firm will cost you around 3,000 Euros per year.