Online casinos might seem like a website, but in reality, they are multi-million dollar establishments. Only a casino licence from a reputable regulatory authority such as the UK Gambling Commission can cost as much as 10,000 Dollars.
Besides, buying and managing slot machines, setting up a secure website, providing customer services, and other overhead costs can build up to a hefty monthly bill. Besides, paying enormous payouts and offering several promotional campaigns can hurt the owner’s bankroll – try demo slots UK.
Is it worth establishing an online slots site, or do online casinos earn an excellent yearly revenue? Well, the answer might not be that simple because, firstly, most of these online slot sites keep their payments hidden from the general public, and even if those numbers are published, we cannot be hundred percent sure if they are true or not. So how could we establish that these are indeed profitable business? Well, to that, we will first have to find out how exactly these slots sites make money?
How Do Online Casinos Make Money?
Here are a few of the methods online casinos use to generate revenue.
The online casinos might not be able to tweak with the games to produce desired results, but the games are built with a pre-specified house edge. Here comes the RTP, which is the probable payout percentage of a slot machine.
For example, the RTP of a machine is pre-defined to be 96%; what it means is that the slot machine will pay back 96% of the total wagered amount during its entire lifetime. However, what it means is that 4% of the total amount wagered on the slot will go to the slot site. Now imagine if a slot machine accumulates real bets of $1,000,00 during an entire year. The house edge for a single device will be worth up to $4,000.
Remember, this is for just a single slot machine. Now imagine the same for 500 devices, with each producing $4,000 of yearly revenue. This accumulates up to 2 Million Dollars worth of revenue generated every year only from the house edge. Now imagine online casinos that offer up to 3,000 slot machines and what their yearly revenues will be.
Online casinos also generate a fair share of their revenues from the commissions, usually from slot providers to put their new games on the platform. These might not be as big as the revenue generated from the house edge, but these commissions give online casinos a lifeline when there are not many users playing their games.
Slot tournaments are another revenue stream for slot sites. These tournaments usually require players to pay a specific fee beforehand, half of which goes towards the prize pool, and the other half goes to the website that is organising the event.
Considering the facts, we have mentioned above, we can easily say that online casino sites are indeed a profitable business, which is why we have so many of those opening all over the world.