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profit margin online casino

Profit margin of an online casino

For most people it is generally unclear how a casino works exactly. This goes for both land based casinos as well as for gambling on the internet. The general idea is that there is always a decent chance to win as long as you play at a reliable casino. This is definitely true, especially because a fair and honest casino will always offer games which regularly give nice prizes to the players. Of course this general idea does not show or explain the profit margin of an online casino to the player. Yet this is something that a lot of people are interested in knowing, as it also gives an indication of your winning chances as a gambler.
Theoretical return to player (RTP)When you open a game then there is always an option to find the game rules. It is actually a legal requirement for a game to make the technical properties accessible by the player. In these game rules you can find things like an explanation of the features, but it is much more interesting to find the ‘return to player’ or RTP. This number will give you much more information about the profit margin of an online casino. The RTP is a percentage that is given out to the players on average for every bet made on this specific game. Let’s take the Cazino Zeppelin slot as an example. This game has an RTP of 96% which means that 96 cents will come out for every euro that goes in. Of course that doesn’t mean that every player will get exactly 96% of his bets back, because then it would hardly be a gamble. It is possible that you get a return of 500% while four other players are out of luck. After millions of game rounds you can expect the casino to have an RTP of around 96% for this game. In other words 4% of all bets will be lost, but this does not determine the profit margin of an online casino. There are many more factors involved regarding income and expenses.

Costs for the casino

Just like every other company an Yggdrasil casino has a lot of costs. This includes things like employees that have to be paid, but also the purchasing and maintaining of systems. Everything put together comes down to a very large amount of money that reduces the profit margin of an online casino by quite a lot. Furthermore the games must be taken from software developers who also need to be paid for their products. Also do not forget that an online casino often pays for the transaction fees when you make a withdrawal request, so that you can deposit and withdraw without experiencing any inconveniences. If you want to calculate the profit margin of an online casino you shouldn’t just look at what is lost or won with the games, let alone for you personally. There are a lot of things that need to be paid and arranged to make sure that you get the best possible playing experience!

Differences in profit margins per casino

Of course the profit margin of an online casino is different when the costs and the RTP are also different. A lot of things can be streamlined within the organization, for example by having less promotional offers or by charging a fee for transactions. As a player you would notice a lot of these things, because your experience will only get better as there are more fun promotional offers. Perhaps even more important are the games that are offered in the lobby. When you play on a website where they offer Yggdrasil slots then there is a relatively high pay out percentage, but there are also online casinos with much less profitable games.

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