Online casino’s profit margin increases daily, so various gambling projects are rightfully considered one of the most profitable and promising types of activity. And yet, the organisation of the gambling business is not such simple as it might seem at first glance.
For being able to do this, you need certain knowledge. Specialists of the Smart Money company are ready to offer the best ways to develop a gaming site. Moreover, they provide a full set of tools that allow operators not only to earn good money but also to compete successfully with many projects that have already gained the worldwide fame.
The research group of H2 Gambling Capital has shown statistics on the increase of profit margins of virtual casino platforms. Unlike land-based locations, online gambling establishments have started to generate revenues since 2010 from 6.24 billion dollars. Last year, the online casino’s profit margin was already 18 billion dollars.
Nevertheless, despite impressive growth data, experts of the Slotegrator company are sure that gambling on the Internet will never reach the status and the level of profit margins of land-based casinos.
The reasons for this paradox:
Any entrepreneurial activity is impossible without a set of special metrics that shows the effectiveness of the work and allow you to calculate opportunities for the further development of your business.
These metrics are called KPI — Key Performance Indicators. The parameters are applied to any business activity and visualise the level of profitability of the enterprise.
Gross Gaming Revenue is the basic indicator in the gambling industry. The medium income of an online casino is calculated according to the following scheme: the number of accepted bets minus payouts to winners. The marker generates the amount of income of the virtual site from the actions of the visitors until the moment of paying off expenses. It is an indicator of the total revenue of the gambling establishment.
Net Gaming Revenue is the total profit of an online casino after it pays all operating expenses and royalties.
Operating expenses include:
The indicator of the net profit of online casinos is an optimal tool for preliminary analysis of the overall effectiveness of the project.
The correlation of the marker to the number of deposits shows how much income do online casinos make each month from investments and game deposits. The parameter also shows the capital turnover.
Cost per Acquisition is a hybrid marker that shows the total sum of expenses of a website to attract one user who has registered and placed a bet. For example, 5000 dollars was spent on the expansion of the audience, and the program has attracted 100 new customers. The cost of the expansion of the audience was 50 dollars for one player.
Average Revenue per User shows the profit that a casino gets from one visitor who has been on the website for a certain period of time. The calculation formula is the following: profit of an online casino for the covered period divided by the total number of guests who are gambling actively.
Lifetime Value shows the net profit of an online casino from one user during his entire history on the website. The main task of marketing campaigns is to increase this particular indicator. The work is aimed at achieving high lifetime customer values and it is conducted in two directions — the level increase of the player's loyalty (the increase of the probability of his return to the gambling establishment) and the achievements of the maximum average check (the amount of revenues that is brought by a user for one game session).
The task of qualified marketers is to interpret all indicators that are mentioned above. But the process of tracking, collecting, and visualising data is a direct function of online casino platforms. The system provides the constant reception of data, transforms the information into an understandable summary that is accessible via the software interface.
You can order an online casino platform and a package of services for the maintenance and promotion of the project from Smart Money. This company will help you to operate the real-time data and get the most accurate information on the income that will be earned.
Marketing services are a large-scale sphere of action, which aim is to manage advertising products, increase traffic, improve performance indicators of the project, monetise virtual sites, and increase sales.
One of the most significant opportunities to increase the profit of online casinos is the regular update of the content and the range of games. Despite the presence of a special set of popular solutions for each virtual gaming site, the more is the range of the offered entertainment, the wider is the audience, and the higher is the possible profit of the online gambling establishment.
In an ideal scenario, casinos should have slots from well-known providers and the fresh content with unusual storylines.
Specialists of Smart Money are ready to offer you a full range of marketing tools and advertising solutions for the promotion and development of online casinos and land-based gambling establishments.
Smart Money has 15 years of working experience in the market of the casino industry, round-the-clock technical support, the guaranteed security, and a wide selection of products. The company also offers fully equipped gambling platforms with a full range of functions, the ability to rent or purchase licensed software and hardware for the land-based locations, services for the integration of the software, and the development of the exclusive game content on the basis of unique sketches.
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