The Business Model Of Online Casinos – How To Be Successful In iGaming
The success of online casinos lies in a sound business model that is seemingly simple, but highly effective at generating revenue.
Since the rise of the iGaming industry in the early 00s, online casinos have largely gone on to overtake their land-based counterparts. This is because the online casino industry has perfected a seemingly simple, but highly effective business model that is able to attract and retain players.
Online casinos have a few advantages over brick-and-mortar establishments. First of all, they are able to offer a much more diverse selection of games. This means they can appeal to a wider demographic of players. Secondly, they are able to offer attractive bonuses and promotions to players, which can be easily tracked and accessed through a player’s online account. And perhaps obviously, but most significantly, online casinos are much easier to access. All a player needs is a laptop or mobile device, and they’re all set to play, from the comfort of home or on the go.
This business model continues to prove sustainable. In fact, iGaming is now one of the top-grossing industries in the world. With more and more start-up casino brands entering this space, we take a look at the basics that make the iGaming industry a compelling business prospect.
A wealth of avenues for effective outreach
Through the power of the internet, online casinos are able to reach a huge demographic of people. Casino brands make use of a wide range of marketing tactics to get their name out there and attract players to sign up with them. Typically, a casino will take advantage of a wealth of opportunities to promote their brand. This will include a Search Engine Optimisation and traffic boosting strategy, Social Media marketing campaigns, and sharing personalised and user-generated content.
Casino brands also team up with affiliate marketers and other influential forces to benefit from cross promotion. This continues to be an efficient marketing strategy in the world of online gambling.
Online casinos offer players more value for their bets
When a new player signs up with a casino, they are usually offered an attractive welcome package. This will typically be in the form of a significant boost on their first deposit. For example, a player who receives a 100% boost when joining will be given an extra €100 by the casino, on top of their initial deposit of €100, meaning they now have a total of €200 to play with. Many times, welcome boosts will go even higher than 100%.
Many casinos also throw in a number of free spins, which players can use on a selection of slot games. It’s a simple tool that doesn’t really cost the casino much in the grand scheme of things. More importantly, it continues to prove highly alluring to players and builds up customer loyalty from the get-go. In fact, online casinos will continue to offer their clients offers and unique promotions throughout the year. This strategy is designed to make players feel rewarded and engaged with that casino throughout the player lifecycle.
More established online casinos also have VIP rewards and loyalty programs to reward their high stakes and most loyal players.
An ever-evolving variety of games
The average online casino offers an astounding variety of games to its players. These range from 1000s of video slot options, as well as a wide selection of casino favourites, such as poker, roulette, black jack, etc. Land-based venues are naturally limited in terms of physical space, so can only include a limited number of tables and slot machines. Online, there are no such restrictions. This also means, players will always find room at a table or game, and won’t have to wait around until someone gets up from an occupied table.
Furthermore, casinos continue to innovate on the core mechanics of traditional gaming options. Slots come in 100s of varieties these days, and many include unique features such as different amounts of reels, multi paylines, multipliers, cascading slots, free spins bonus rounds, and so much more.
The same can be said for exciting new variants of blackjack, roulette, baccarat, and poker. Even better, these have been turned to live dealer variants played against human croupiers and streamed in 4K resolutions. Live casino games show that the industry is always aiming for innovation and finding new ways to generate revenue based on what players want.
24/7 customer support
Another vital facet of a successful online casino business model is customer support. Reputable online casinos consider it a major cog in the business model wheel. They offer 24/7 support over a number of channels including email, phone support, and live chat. There are literally dozens of agents to answer player questions and assist with any problems. Many casinos even pay remote workers to ensure agents are on the line at all times, around the clock, so that their players always have someone to turn to when in need.
Building trust through gambling licenses
While it is not always essential to be in possession of an official gambling licence to operate in the industry, a gambling licence is definitely essential to the long-term success of an online casino. In essence, a licence ensures an online casino is fully regulated within the jurisdiction it’s operating in, paying its taxes, and providing a duty of care towards players through effective responsible gaming measures that limit gambling addictions and destructive betting patterns.
More and more players seek out online casinos that hold recognisable gambling licences. These have become a sign of respectability, trustworthiness, quality, and, above all, safety. Top online casinos across Europe will hold licenses from leading governing bodies, such as the Malta Gaming Authority and UK Gambling Commission.
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