Is it still worth to launch a new online casino?

Operators of online casinos have been under scrutiny ever since this industry emerged in the late 1990s. From unfair games to total fraud – the list of accusations is long. However, as bad as their reputation has been, running an online casino has, for a long time, been an extremely profitable business.

The House Always Wins

When you talk to people about casinos, there is a good chance you hear a phrase like 'the house always wins'. It means that no matter how much money a few players take home, the business is designed in a way that it will always net a profit. Even though most (online) slot machines have payout rates of 90 per cent and more, the player rarely walks away with a plus at the end of the night.

"Return to Player (RTP) is the theoretical payout percentage a slot game returns to the gambler measured over a long period"

Think about it; unless you're a professional poker player, most gamblers rarely play to earn money. While everyone is chasing a big win, the real reason for betting money on cards, reels, or horses, is the excitement that comes with it. The adrenaline rushing through your veins, the chance of potentially being a millionaire the very next second; gambling is not a job, it's a feeling.

Casinos know this and benefit from it big time. Just as you want to walk out or leave the online casino, you get offered another bonus or suggested another game. Don't stop now; there is more to come yet!

Regulations Are Hitting Online Casinos Hard

For years, regulators around the world tried to tighten restrictions for online casinos in an effort to protect players; especially the vulnerable ones. Since 2019, it seems, they're doubling down.

Whether it's in the United Kingdom, Sweden, Spain, or Germany – regulatory bodies in Europe have introduced some of the toughest restrictions the online casino world has ever seen. From player verification to credit card ban, ban on advertising to bonus removals; online casinos have lost their free ride. What's more is that for the first time, operators are fined in the millions for breaking the rules set out by the regulators.

As a consequence, many smaller operators have pulled out of heavily regulated markets like the United Kingdom. The cost of adhering to all rules and the risk of getting a huge fine is no longer worth the potential reward. So, is it still worth launching a new online casino?

Sister Sites Help to Increase Profitability

There is no straightforward answer, but casinos have found ways to increase their profitability with little effort. While back in the days, most operators put all their focus on a single brand, today's gambling companies launch several sister sites alongside each other. Since it has become increasingly hard to satisfy everyone's needs and expectation with a single online casino, operators craft experiences for different player types using the same engine.

Under the hood, all their casinos, commonly referred to as sister sites, use the same mechanisms for games, payments, and player support. However, on the outside, they all look entirely different. Different colours, promoting another game, and building a unique player funnel; the concept of sister sites allows operators to capture a larger market share at a low cost.

So, should you launch an online casino? If you have the funds to kickstart the operations and focus on building a lean business with high flexibility, then yes, online gambling is still a very lucrative market. However, the times of quicky cashouts are over.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes