The return on investment terms is of great interest to most businessmen who decide to start their own gambling projects. The Gaminator experts will help you understand how to increase the profitability of an online casino. We will talk about the analytical profitability parameters, as well as about the possible ways to increase the payback of the platform.
In order to understand how to increase the profitability of your online casino, you need to understand the basic indicators of gambling business performance. The KPI evaluating method (Key Performance Indicator) is applied in this case. The parameter defines the key indicators of the Internet business profitability and helps to outline the steps needed for increasing the gambling profit.
Depending on the specifics, key performance indicators can be divided into three large groups:
Operators are interested in the first category because it allows them to see a clear overall picture of the casino income growth.
Financial performance indicators include three key aspects:
Gross Gaming Revenue
These are funds received from players without deductions. They are calculated as the sum of all customer bets, subtracting the winnings
If you draw a parallel with the online store, then this indicator will characterize the revenue, but not the final profit
Net Gaming Revenue
This amount consists of gross revenue without all operating expenses. They include license fees, the use of a franchise, the bank and financial system services, software, and technical platform rental
Bonuses and discounts are also related to casino expenses
The ratio of Net Gaming Revenue to the amount of deposits
This indicator illustrates the share of revenue generated from user deposits invested in online business
The higher this parameter, the more efficiently the platform
Analysing the table, we can understand that the payback of online casinos depends on two main factors, such as the amount of money spent by the players and the sum of transaction costs that paid by the operator during each period according to contractual obligations.
How to increase the profitability of an online casino? The answer to this question depends on the competent management of the above factors. The traffic increasing and cost optimizing (monthly or quarterly) is a universal approach that will allow you to bring your own business to a completely new level.
This rule applies not only to Internet traffic but also to other areas of gambling. Sports betting business works according to the same principle.
It is essential to understand that indicators can vary from month to month for one or another reason that is not always dependent on the operator. For example, the income may be high during the Christmas season. However, it may decline in February and March.
In order to get accurate profitability results, it is important to consider all the parameters for a particular period (for example, six months or a year). It will help you understand the dynamics of profitability and identify steps needed to increase it.
The complex of methods aimed at attracting new users and retention regular customers is called a marketing strategy. Experts recommend ordering a high-quality marketing plan from professionals, for example, Gaminator. The client will receive a promotion campaign strategy for all communication channels and guaranteed traffic growth in the shortest possible time.
The marketing strategy consists of the following areas:
Profitability can also be raised by reducing financial costs. As already mentioned, these costs are formed from the planned deductions to providers of gambling equipment and software, payment systems, banking institutions, affiliates, franchise owners, and other counterparties. In this case, the best solution is a phased overview of contracts and the signing of new agreements on more favourable terms.
Staff salaries and related taxes are the main expense items in the gambling industry. Thoughtful analysis of the staffing capacity and the transfer of some functions to outsourcing services (for example, accounting, legal support, or advertising) will help you free up a significant part of working capital.
It is worth remembering that the optimization of some costs does not depend on the operator. These are tax deductions, gambling licensing fees, contributions to financial guarantee funds. Such directions constitute the lion's share of the resource budget and can be reduced only due to the changes of the legislative framework of particular legal jurisdiction.
The payback of a gambling project depends on two main factors, such as traffic growth and reduction of current costs. Competent management of these two components will increase the profitability of the business and bring it to an absolutely new level.
You can buy a ready-made online casino with a high profitability level from Gaminator. We offer a full-fledged solution that will bring a decent profit in the shortest possible time.
The customer will receive a product with high-tech software, well-thought-out functionality, and an extensive library of casino games. A competent marketing strategy, as well as legal and technical support, will contribute to the high self-sustainability of the project.
You can purchase poker and betting software, affiliate programs, and order the development of online slots using HTML5 technology from Gaminator.
Contact our managers to get a detailed recommendation on how to make your gambling project the best one in the chosen area!
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