The gaming industry is showing a tremendous pace of development. According to forecasts, the annual growth of the industry will be about 7-11% until 2023. To get real casino profit, owners of gambling start-ups need to assess the profitability of the enterprise as accurately as possible.
Casino profitability is classified by some metrics and indicators. The Bett-Market team has collected comprehensive information on this topic. We will help you understand how to increase the profitability of online casinos and evaluate the successfulness of your gambling business.
These indicators will help you evaluate the casino profitability and understand in which direction your project should be developed.
| Indicators of gaming platform profitability |
| Evaluation criterion | Description |
| Financial metrics | Gross project income The calculation scheme is as follows: the amount of paid wins minus the total amount of revenue from bets. The indicator shows the profit of online casinos from losing bets before commission fees deducting |
| Casino net profit Here is the calculation scheme: gross income minus internal costs (commission fees, bonuses, license fee, and affiliate payouts) |
| The ratio of net income to deposits This indicator shows the profit of the casino from the total number of bets made by users on the portal. The higher this parameter, the better for the operator |
| The ratio of bets to deposits This metric is applied to assess the financial turnover of an institution. The growth of this indicator speaks for excessive bonus payouts |
| Human factor indicators | Conversion This rate allows operators to evaluate the effectiveness of attracting a new audience and is expressed in clear figures: The metric is used to track and analyse the overall traffic, the actual distribution of bonus payments, and evaluate the payback of the marketing program |
| Lifetime value Online casino profit depends on this indicator directly. The parameter displays the amount of income from a specific user for the entire time of his or her activity on the site |
| Audience loss ratio The lower this value, the higher the casino profit. The metric reflects the ratio of loyal customers and gamblers who left the service |
| Hybrid indicators | Customer acquisition cost The rate demonstrates the effectiveness of resources spent on an active client (taking into account a specific set of actions performed by the user, for example, following an advertising link, registering, making a deposit, etc.). The calculation formula is as follows: advertising costs divided by the number of active users for a specified period. The result is considered good if the attracted audience has fully covered and exceeded marketing expenses |
| Average player revenue The figure shows how much the establishment receives from each loyal user during a specific period. Here is the evaluation scheme: total revenue divided by the number of active customers for the selected period |
The above indicators can be collected and analysed using special software.
If the operator is wondering how to increase casino profits, he or she should order a complex set of software. High-quality programs are automated as much as possible (the human factor is excluded). They will allow you to collect the necessary information 24/7.
Functional and reliable software that is used to analyse the profitability of casino slots must meet the following criteria:
- operational interaction with players and affiliate network;
- analysis of all financial manipulations;
- automatic processing of information flows;
- the presence of a basic set of analytical tools.
There are several ways to increase casino profits. However, the right marketing program is considered the most effective and fast-paying method of increasing customer lifetime value.
Familiarize yourself with some options for increasing casino profit:
In 2018, more than 70% of gamblers preferred to play using their mobile devices. The presence of an adapted version of the website or a specialized application for Android and iOS platforms is the best way to increase casino profit and the audience many times.
The modern user is interested not only in a real money game but also in the format of interaction with the gambling service and the positive experience from the session. The operator must provide a quick solution to any technical and social issues.
It is worth introducing some personalized options:
- player status;
- the presence of user accounts with statistical tools and quick access to financial services;
- authentication through social networks s;
- personal manager for VIP-users;
- extended range of bets;
- automatic saving of frequently used game parameters.
When answering the question “how to earn more in a casino,” we cannot ignore the loyalty programs.
It is worth highlighting such options among the most promising solutions:
- Welcome bonuses. These are rewards for active actions performed on the casino platform (visiting the website, registration, first deposit).
- Built-in rewards (free spins, symbols with advanced functionality, cumulative jackpots, etc.).
- Seasonal and short-term promotions. Tournaments held periodically throughout the year, personal awards for the user’s birthday or anniversary of membership, thematic solutions dedicated to various holidays are examples of such events.
- Cashback. Even the luckiest user cannot win constantly. A partial refund from losing bets will help the player keep calm and not be upset.
Many novice businessmen are interested in whether are casinos payers of income taxes. Commission fees and other deductions are an integral part of legitimate business activities.
The presence of a license on providing gambling services and certificates for the software used (not only for the gaming platform but also for each slot machine) plays a decisive role in the player's choice of a gaming institution.
Accordingly, the mandatory cost items of a promising and successful project include license fees, taxes, and commission payments for software suppliers.
The size of the casino profit tax depends on the jurisdiction and legal norms of a particular region. For example, in the United States, the amount of deductions depends on the type of license and the number of gambling establishments (the amount of the tax can reach $1,000 per month from 10 slot machines).
The British tax system is considered to be the best for the gambling industry. Since 2014, a deduction scheme, which depends on the consumer’s place of residence, has been introduced in England. As a rule, online services pay no more than 15% casino income tax.
The evaluation of the profitability of a gambling establishment is a multi-component procedure requiring special analytical tools. Statistical reports allow businessmen to not only calculate the net profit of the project accurately but also to adjust the marketing strategy for the further development of the website.
Leave a request to the Bett-Market managers, and we will offer you the best tools for financial control and performance monitoring of your startup. The best software from global suppliers and a wide selection of exclusive products are available for our customers.
You can order comprehensive services from us. We are ready to work on the development and implementation of a project of any difficulty level (from traditional casino websites to unique mobile applications, sweepstakes, and bookmakers with a wide range of betting lines).
Become part of the successful Bett-Market family right now:
