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Successful Casino Business: Secrets of Launching a Profitable Project

Updated 09.08.2022

The online gambling market is considered one of the fastest-growing sectors of commerce. Moreover, with the creation of a wide variety of slot machine platforms, the number of their visitors also increases. According to statistics, 26% of the world's population actively plays on web resources, which is more than 1.6 billion people.

Online casino: successful launch secrets

In this article, Smart Money experts will tell you how to launch an online casino in the new realities and achieve the maximum effect from investments.

Learn more about the types of earnings on gaming sites, the characteristics of a successful business, and the key indicators of profitability of an iGaming project.

How Do Casino Platforms Make Money?

The audience of gambling websites is very wide but the main income for operators is brought by high rollers — people who are ready to bet large sums. Such clients are not just being valued: separate bonus programs and various privileges are developed especially for them.

If we consider the general principles of the turnover of funds in a gambling establishment, then the most common method of earning money is the advantage of a casino over players, bonus wagering, and commission fees.

The most profitable positions are video slots and poker. The second place is taken by various card games, roulettes, and lotteries. Accordingly, one of the main tasks of operators is to create an online casino with a wide range of content.

All types of entertainment on the platform are conditionally divided into 2 categories:

  • client vs casino;
  • player against player.

Depending on the format of the gambling competition, the ways to make money available to the entrepreneurs may differ.

Principles of profit-making in a turnkey online casino

Income based on RTP indicators

RTP is a fixed percentage that is returned to players and determined by the software vendor at the development stage. The probability of a winning combination is generated based on RNG algorithms.

This way of earning is used in all games in which clients play against the house

Profit made on the losses of participants

Such a mechanism is installed in turnkey platforms with live content and other games that do not use a random number generator.

In addition to the income from the unsuccessful bets, operators also receive a certain percentage of each successful round. It is beneficial for the institution if users have an interaction of losses and wins

Making money on the rake

This is a mandatory fixed fee established by the administration of the gambling location. As a rule, the size of such a commission does not exceed 3–5%.

Examples of the rake:

  • interest from the bank in poker;
  • deductions from each bet placed in the slot;
  • entrance fee in board games, etc.

Key Indicators of the Success of a Gambling Start-up

Online gambling platform: success indicators

Every casino needs benchmarks, with the help of which it will be possible to evaluate the return on investment and the level of business scaling. For this purpose, special metrics are used — KPI.

The most common and useful aspects:

Financial KPIs

This is a set of statistical indicators that are necessary for assessing the balance of an establishment:

  1. Gross income. Calculation formula: the amount of placed bets minus payments on the played deposits (except for bonuses, cashback, and loyalty programs). In fact, it is a measurement of the net results of the game for the selected period.
  2. Net profit. This is gross revenue minus commissions, bonuses, royalties, taxes, and fees. The parameter displays the entire financial situation and allows operators to clearly assess the return on investment.
  3. Bets to balances. The replenishment of the gaming account will not bring profit until the money is placed in the form of a bid.
  4. Net revenue to deposits. The indicator shows the percentage of investments that have turned into profit for the gambling establishment. The metric is used to understand what volumes of bets need to be achieved in order to get the desired revenue.

User Indicators

The task of customer KPIs is to assess the level of audience loyalty and the quality of player interaction with the gambling platform. For this, the following metrics are used:

  1. Conversion rate. Comparative characteristics of active gamblers and potential clients who have not completed the desired action. With its help, entrepreneurs can identify “the weakest links” in a commercial strategy.
  2. Level of customer retention. This indicator is tracked within a certain period and is needed to understand how long the user will be active before he leaves the website.
  3. Outflow of the audience. This metric shows the number of customers who, for any reason, stopped playing for a long time or permanently. An increase in the indicator can mean the dissatisfaction of the audience, uninteresting entertainment content, bonus abuse, increased competition in the market, etc.
  4. Duration of the session. The indicator shows the time spent by the casino visitor on the website during 1 round. The higher the value, the better. If the duration of the game is decreasing, it is worth thinking about updating the catalogue of gambling solutions.

Hybrid Metrics

KPIs combine an assessment of the user behavioural reactions and indicators of the enterprise financial turnover. Key elements are:

  1. Acquisition cost. This is the price that is paid for attracting 1 new client.
  2. The average revenue per user. The calculation scheme is as follows: the total income from the gambler for the selected time divided by the number of all active participants.
  3. Customer lifetime value. This indicator reflects the total amount of revenues from the client for the entire period of his activity on the website.

Working with KPI allows operators to track changes in user habits, the results of advertising strategies, and the profitability of their business. With the help of such metrics, it is possible not only to predict future profits but also to develop the most effective strategies, taking into account the recent market trends.

Successful Gambling Platform in the View of Customers

Successful gaming site: key features

The launch of an online casino involves the performance of several tasks:

  • company registration;
  • business legalisation;
  • creation of a gaming site;
  • selection of the catalogue of gambling products;
  • integration of payment instruments;
  • organisation of the work of the support service;
  • implementation of a marketing strategy, and much more.

All of the above-mentioned actions have one goal — to drive maximum traffic to the resource and keep it.

In order for the development of an online casino to bring the maximum return to operators, it is worth looking at the project through the eyes of a potential client.

According to the results of an anonymous online survey, the loyalty of the audience and the success of a gambling establishment depend on the following factors:

Design and Structure of the Website

To assess the ease of navigation and make a first opinion about a platform, users only need 3–5 seconds. If the page takes longer to load, 87% of visitors will leave it. Moreover, search networks do not rank gaming sites with a long response time.

Advice from the Smart Money team: avoid video inserts, animations, pop-ups, and any other components that may affect the download speed.

Characteristics of a high-quality gambling platform:

  • intuitive navigation;
  • laconic design without many advertising blocks;
  • the convenient division into thematic sections;
  • high-quality information content;
  • quick access to licence data, privacy policy, and bonus wagering conditions;
  • simple forms of registration and re-entry into the user account;
  • the presence of widgets for identification through social networks;
  • convenient communication channels with the support service.

Product Range

One of the latest trends is the creation of a turnkey online casino with content that is as close as possible to the standards of multiplayer computer games.

Next-generation gambling solutions have the following features:

  • gradual development of the plot;
  • support for multiplayer and PVP game modes;
  • the presence of side quests and several levels of difficulty;
  • built-in purchases of new characters, additional boosters, etc.;
  • gamified mechanics with the ability to increase user experience and skills.

Operation in the Mobile Segment

In 2020, the share of smartphone users exceeded the volume of desktop traffic for the first time. Today, more than 52.8% of the online industry’s turnover comes from the mobile market, and the figures continue to grow rapidly.

One of the easiest, fastest, and most effective ways to launch a mobile gambling platform is to buy an online casino in the format of a Telegram channel.

Advantages of the solution:

  1. Audience coverage. Working on the basis of the messenger, operators can drive traffic regardless of geolocation. Moreover, it is possible to promote services and accept bets even from those regions where gambling is strictly prohibited.
  2. Optimisation of administrative processes. Chatbots in Telegram casinos are developed using AI technologies and can solve a wide variety of tasks — from evaluation of user reactions, acceptance of bets, and personalisation of offers, to controlling payouts and answering standard support requests.
  3. Launch speed. The Telegram platform provides entrepreneurs with a complete set of tools for establishing their mobile business. With a ready-made basis, it is possible to implement a project within a few weeks.
  4. Anonymity guarantees. To place a bet, users do not need to provide personal data or financial information. All operations are performed exclusively within the channel by the phone number.
  5. Stable performance. Gamblers can play the game in the familiar messenger’s interface, and the speed of response to their actions does not depend on the quality of the network connection. The system automatically saves the history of visits and resumes the session from the moment when it was interrupted.

Bonuses and Loyalty Programs

Promotional offers and bonuses have the greatest impact on the growth of customer lifetime value.

The best results are achieved when using the following solutions:

  • welcome bonuses for the registration and placement of the bet;
  • no-deposit bonuses (free spins, boosters, increased multipliers, etc.);
  • cashback programs;
  • multiplayer tournaments;
  • personalised offers (gifts for the holidays, limits for VIP clients, private gaming areas, etc.).

Support Service

Google analysts have calculated that more than 70% of internet users prefer to contact the institution's support service than search for information on the website by themselves.

To improve the quality of interaction with the audience, operators can use such methods as:

  • optimisation of the FAQ section for voice search;
  • addition of a dialogue box to the platform;
  • connection of several feedback channels;
  • provision of gamblers with an opportunity to communicate via popular instant messengers or pages of social networks;
  • organisation of an ability to communicate with customer support in several languages.

The Main Things about the Implementation of a Successful iGaming Project

The gambling market is one of the most popular areas of investment. Today, the industry is experiencing unprecedented growth because online casino games have become one of the few leisure options available.

  • KPI metrics allow entrepreneurs to assess the profitability and success of their business. With the help of the special financial, user, and hybrid indicators, it is possible to track changes in the reactions of players, the quality of an advertising strategy, and the amount of income from each active client.
  • The design and structure of a gaming site largely affect the profitability of the project. A successful platform should be made in a laconic style without too much advertising, video inserts, and other elements that affect the download speed.
  • Next-generation casinos offer content that is as close to the canons of computer games as possible. Rated gambling products are distinguished by interactive mechanics with an ability to accumulate user experience, several levels of difficulty, and the presence of a PVP mode.

To learn more about the latest market releases and trends and buy an online casino that meets the industry standards, please contact the Smart Money studio.

Our catalogue contains the following successful developments:

Leave an application to our managers, and we will select the best solutions for your iGaming start-up.

Hans Adrian

Hans Adrian

B2b Gambling Business Advisor & Strategist

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