In order to know how much online casinos make, we should try to understand how they make their profit first. Learning their methods may not increase your winning odds when you bet online.
However, learning about this topic will give you a better perspective of the online gambling industry profits in order for you to enjoy it’s services. It will give you a clearer picture of how an online casino keeps afloat compared to conventional physical casinos.
However, if you do want to find out how to increase your chances at winning at online gambling, you can learn how to play casino games first. Moreover if you are cash strapped, there are also strategies on how to win at the casino with little money.
The house edge
You’ve probably heard this term a lot but haven’t had the time to understand what it really is before you play a table at the casino. What is the house edge? The house edge is the advantage the casinos have over the players in casino games. This gives the casino a higher chance of making money the longer a punter chooses to play in the casino.
Because the payout is lower than the odds, you are almost always going to be at a loss, the more games you play at the casino. Take American Roulette for example.
If you wish to bet on a number, the chances of you winning is 1 in 38 as there are 37 other numbers on the board. The outcomes of the results being 1 to 36, 0 and 00. However the payout for you winning that bet is 35 instead of 38.
The other way you could bet on roulette is by betting on the colour suite that the winning number belongs to. Either black or red. You may think that your chances are 50/50. However, the odds are lower as there are 2 outcomes. 0 and 00, that are neither black nor red.
Do all casino games have the house edge?
Yes they do. That’s how the casino makes a profit. However, different games have different odds so choose your game wisely i.e. games with smaller house edge. Blackjack is an example of a table game that has a lower house edge. Although there is a learning curve and strategies to learn with Blackjack, you should invest some time into learning them as it will increase your chances of winning significantly.
How much does it cost to operate an online casino?
We need to understand this point as we can only calculate the profit after we subtract their expenses from the revenue. An online casino doesn’t require hiring floor staff, renting or owning a building to provide its services. It does not need to have restaurants and other forms of entertainment to keep their customers in the casino for a longer time either.
Thus, setting up and running an online casino may be cheaper, but that doesn’t mean it doesn’t take much to run an online casino. Online casinos would need to apply for licenses which in many cases cost the same ones that the physical casinos obtain. The operators would also need to rent or build softwares for the games. To manage the data, online casino operators will also need to maintain servers. All this comes to a ballpark figure of 20,000USD a month.
Because online casinos have lower overheads, they are able to use the extra funds to provide more bonuses and rewards for their patrons. This is why you should take advantage at High5 as they offer unbeatable welcome and deposit bonuses!
So how much do online casinos actually profit?
So after understanding all these facts and figures, is it possible to actually know how much online casinos make? Well it is hard to tell at the end of the day how much each online casino makes as they do not report their profits publicly.
However, we do have a picture of how much the whole industry makes in the UK. The UK is a good reference point as online gambling is legalised throughout the country unlike the USA. In the financial year ending 2019, the industry reported a profit of 3.2 billion! Thus, you can see why running online gambling sites are lucrative.
In summary, it is hard to tell how much an online casino makes but we can surely see that they will be around for a long time and it’s a fast growing industry. There is no need to worry that the industry will crash if you play on a reputable website like ours.