It doesn’t take a genius to work out that the casino slots industry, on a whole, is incredibly successful and a profitable business. Just look at the lavishness and magnificence of the Las Vegas Strip. With land-based casinos being so successful and profitable its easy to believe that online casinos must also be. Perhaps the fact that they don’t need to splash out so much on staffing, premises requirements and equipment could mean they make even more of a profit.
How do online casinos make money?
How much online casinos makes every year in revenue all depends on their size and the market in which they occupy. However, its believed that on a whole the entire global online casino industry is worth around £30- £40 billion a year, blimey!
So how exactly do they do this?
1. House edge – this is a formula used so online and land-based casinos alike make a profit. It’s basically where a player loses a small percentage of their money every single time they play a game and ever so slightly increases the casino’s advantage.
2. Commission – some casino games involve the collection of a commission before a game starts or there’s a fee to join the game.
3. Introducing new games for free – this is a trick that online casinos use to make more money. When a new game is offered on a website the casino will make it free to play for a limited amount of time to encourage people to play and get hooked! Once a fee is introduced players that want to continue playing must pay.
4. Free cash – another nifty trick that online casinos use to pay money is by offering free cash to player when they sign up. Seems great right? However, usually in order to redeem the cash players need to open an account and make a deposit first.
The future of online casinos
The already very successful industry is only increasing in value but why?
- Technological advancement in gaming software means that games are getting better and better, with better quality games and exciting new features.
- Increasing access to internet connections, computers, smartphones and tablets across the globe mean more and more people are able to play online than ever before.
- Improved regulations bodies also means that more and more people have trust that the online casinos operate at a high standard, much like that of land-based ones.
Final thoughts on how much online casinos make every year in revenue
The fact that the number of online casinos available is increasing just goes to show that it is a profitable industry. As we mentioned earlier, online casinos don’t have to worry about paying for extensive staffing, rent or building upkeep or flashy equipment. However, they do have to pay for hosting, different licences and software. They also need to pay for marketing in order to bring in new players.
Online casinos make millions but its no surprise when they offer the thrills of the land-based casino from the comfort of your own living room!