Have you ever thought about opening your own online casino? It might sound like a guaranteed path to riches, especially since online casino searches reached all-time highs during lockdown. What you might be surprised to discover is that the rate of failure for new online casinos is high, especially when a site does not conform to existing online casino business models.
So, how does running a profitable online casino work? In looking at a few different casino sites that have been in business for many years, we found some commonalities that are hallmarks of the successful online casino business model.
The Characteristics of a Successful Online Casino
It seems that one can narrow down the most important qualifications for an online casino in short order. These qualifications apply to the best online casinos in Japan, Europe, and other regions. At the top of the list is a good reputation.
There may have been a time in online gambling when operators could just jump from site to site, scamming unsuspecting players with regularity. When things got too hot at one site, the operators could close it down and switch to a new domain. Sometimes this could even happen within a matter of hours.
That’s not how things work today. Players are more easily able to access information about the ownership of an online casino. They can look into the histories of everyone involved. Records are kept by licensing agencies and regulators, and transparency is becoming a must for all operators.
Licensing is also high on the list of common factors. A legit online casino should have no problem getting and maintaining a license. If the casino is unable to provide specific licensing information, players should probably give the venue a hard pass.
Finally, the current online casino business model requires providers to offer easy access to customer service for players. Players should be given at least three methods of reaching a customer service agent.
Why Excitement is King
The need for legitimacy is crucial, but a casino has to be vibrant and entertaining if it wants to get customers in the door. Once it has the player invested, keeping them happy depends upon delivering authentic casino experiences.
The strong online casinos today have partnered with the very best game developers to provide games that can be found in live venues. Every detail of a game is designed to reflect the live blackjack table or the live keno room. At the same time, online casinos also have to create new environments that are attractive to players that have never seen the inside of a live casino.
The VIP programs that are used in many live casinos have also been used to great effect online. Players can earn points that they can exchange for free cash, spins, and drawing entries. This keeps them coming back for more as they claim the next week’s exciting promotional offers.
Virtual gambling has to look and feel like the real thing. The graphics and game play are so advanced today that players won’t stick around for a boring gambling session. There are just too many options for them.
Producing Online Casino Winners
Online casinos are in business for one reason. That reason is to turn a profit. Some online casinos have learned that the key to a successful online casino business model is to balance the profits with regular payouts. Players need to feel as if they have a legitimate chance to win.
Not too many years ago it was common for online casino platforms to offer slot machine games with a very low rate of return. This could sometimes amount to a payback of 75% or less. Players were being beaten on the regular, and the online casinos learned a hard and painful lesson. You can shear a sheep many times, but you can skin a sheep only once.
The payback rates for the current online casino model are far more generous. They can be as high as 95% on some machines. In video poker the house edge is very low, and players can improve their chances with proper strategy.
Players have to win something on occasion or they will look for other places to play. Once a player has it in his or her mind that a casino is tight, an irreparable damage has occurred.
Adding Multiple Wagering Platforms
The past few years have seen some changes to online gaming platforms throughout the world. In particular, online casinos today are expanding to provide other forms of wagering such as sports betting and horse racing betting.
It makes good business sense to have all types of online wagering under a single umbrella. Players like the convenience of being able to switch from playing a hand of blackjack to making a bet on their favorite Premier League team.
Bonus and VIP Programs
One aspect of the successful online casino business model has not changed at all. That is the bonus and VIP programs that players love. New players at an online casino still expect a bonus when they sign up for an account. Some of them today even expect reload bonuses with each new deposit.
Online casinos are generally happy to comply with the requests. They just make it more challenging for a player to be able to withdraw the bonus money that they have been given. A large number of players never get that far. Instead, they deposit above the bonus money that they have received when it has been exhausted.
It will be exciting to see what the new era of online casino gambling brings to players throughout the world. What will be the next major innovation? Our guess is that the basic elements of the model that we have described will remain in place. There is no need for online casinos to fix what is not broken. As long as players are kept happy, given a chance to win, and allowed to trust a gaming operator, they will keep coming to chase the elusive big win.