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What is the Business Model of an Online Casino? Rosloto Expert Answers

In short, the online casino business model can be described as follows: it is a website where people can play for money. In general, everything repeats the gambling scheme that was tested by centuries, according to which clients satisfy their passion for gambling, and casino owner takes money that they lose.

Casino business model

However, modern gambling establishments work according to a more complex scheme, and the very concept of a “business model” includes not only a description of the transfer of money from clients to businessmen but also options for the organisation of a business, cooperation with partners, and distribution of funds within the company.

Three Models of an Online Casino Creation

  1. Independent creation, opening, and launch of a gaming site from scratch.
  2. Purchase of a franchise casino or a White Label model.
  3. Development of a turnkey casino.

The first and the third option assume that you take all the money that you earned, well, except for the taxes. However, only if you work under a gambling license. But the purchase of the franchise means that you will give a certain percentage of your earnings to a provider.

Besides, the number of fixed costs of an online casino of any type of organisation includes:

  • promotion;
  • payments for affiliate programs;
  • payments to the technical support centre for the resolution of issues that may arise;
  • SEO promotion;
  • hosting and a domain;
  • improvement of the design of a website;
  • fast error resolution;
  • deductions to the government and other fees.

However, the income always comes in the same way. First, you spend money on advertising — gamblers find out about your website, visit it, and, if they like the offered conditions of the game, they register and create an account.

Online casino profit: what it consists of

Then they need to deposit funds in order to participate in the games. You will earn more if you can attract high rollers and VIP gamblers but you need to work hard on the reputation of your website.

And now Lady Luck comes into action. If she smiles at the player, he will receive a good prize. If not, the size of the placed bet will go from the player’s account to the gambling establishment.

Accordingly, not only an unblemished reputation is important but also a wide range of games, slots from different manufacturers, as well as bonuses, promos, discounts, and good rewards for the first deposit or a big bet.

Often, a successful launch and the future of the gaming site depend on the chosen business model. If you still have doubts — turn to professionals.

Specialists from Rosloto will certainly be glad to help you. The company sells casinos on a turnkey basis, the gambling software, and slot games for already existing projects. They will share their knowledge of how to organise and conduct the gambling business on the Internet in a better way under the conditions of today. Good luck!

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Author: Clara Hazel
iGaming business expert
01.29.2019
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