How Do Online Casinos Make Their Money?

Elias Hubbard
July 5, 2018

Online casinos can be described simply as a distributor or a platform that makes slot games readily available for interested players from all over the world or for some specific regions where they operate. However, a pressing issue or a question so to say has always arisen with regards to how these business platforms have been managing to keep their businesses running albeit the tight competition all around.

Those means and methods employed by casino owners like are the onus of this article. Follow up if you are curious and you wish to know how online casinos make their money even in the midst of serious competition.

How Online Casino Platforms Make Their Money

Online betting houses have devised several means to secure their profits and keep their businesses afloat, some of which include - the creation of house edge, cuts on jackpots and prizes, the setting of return to a player percentage (RTP), traffic on affiliate advertising companies, etc. These all will be thoroughly discussed below.

House Edge Creation

The apparent fact is that gambling is a game of luck and a player knows that he cannot always win, the players’ losses are casinos’ gains.  In other words, casino producers usually create them in such a way that they leave for themselves a particular percentage of the wins on the reels. This way they will surely make some gains from each stake especially when the player bets for real money. Take for example American roulette; there are two zeros on this roulette which means the house edge will be fixed at 5.26%. The consequence of this on a $1 stake gives the casino a moderate amount of $0.9474.

The setting of Return to Player (RTP)

The return to a player simply means by which casinos secure their profits. They do this by publishing a review online that a particular percentage is what will be paid to players on each of their wins. The average, or should we say standard RTP that exists as of now, is 96%. Most people don't usually go for slot games that have below 96% RTP except such game is extraordinarily compelling, or the player is just doing it for free or fun but not actually for real money.

An excellent example of the guaranteed profit a casino is going to make on a pokie if it sets the RTP at 96% is. Let us say that clients betted $1,000,000. According to RTP, their winnings will amount to $960,000, which leaves a gain of $40,000 for the slot provider.

This practice is not a secret, as it is a requirement on many casino reviews that the RTP of a particular game is disclosed to players.

Gambling Feature in Games

It is safe to say that everybody wants to have double or quadruple his current revenues. This is why casinos online have devised a rather cunning way of draining players of their earnings by throwing out some bait in the form of a gambling feature.

In most gambling features, a playing card is always placed downwards, and players are asked to guess the colour or the suit on it. The players’ wins will be doubled or quadrupled respectively if the players make the right guess. However, the gist is that players only usually think this feature right once in hundred attempts, this way the player loses all his wins and the casino takes all to themselves.

Fishing method is another gambling feature that most online casinos use as bait for players. This was used in Angler Slot. In the slot, the fisherman takes the player in a boat to a nearby lake and asks the player to. Catch fishes the number of which determines the players’ wins. If he gets nothing, the casino takes all.

Progressive Jackpots

Casino introduces a progressive jackpot to make people part away with their money. The players here will be eager to risk their money for more cash. They also make it easier for gamblers to see winning opportunities on the reel. A person thirsty for high payouts (jackpot) may be overwhelmed to gamble with all the cash available without any consideration.

Advertisements and Blogging

Some online casinos have made it big from advertisement and blogging. A single advertisement deal can translate to up to hundred thousands of dollars. Apart from this, blogging has become a hot cake that cannot be underestimated even in the gaming industry. With the inception of blogging and the incorporation into online gaming, many casinos have been able to smile to the bank all for the dollars.

Incite to Gamble

The question on many players’ minds is “how do online casinos make their money despite the huge payout they give out?” Well, do not be deceived by the groundbreaking prices, they make huge profits backstage. Their money comes from RTP, House Edge, Progressive Jackpots and Gambling features. Apart from this, the casinos can close various advertisement deals which bring more cash into the pocket of the ever-smiling online casinos.

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