For the past two decades, the digital and tech sectors have boomed. However, all we see are the companies that managed to overcome trials and tribulations. The sad truth is that the majority of tech startups fail. And that’s perfectly fine, failure can build character. To quote Rocky – “It’s not about how hard you hit. It’s about how hard you can get hit and keep going!” And that’s exactly the mindset you need if you want to run an online casino business.
Of course, you don’t have to get into this business thinking you will fail. You still need to give it your all and learn from the mistakes of others, rather than your failures. To that end, we’ll go over some tips on how to make a profit from running an online casino.
Successful Online Casinos
Before you start you should take a look at your competition and see what things they are doing right. Feel free to consult the ToppCasinoNorge site to find all of the top-performing operators in Norway, and Europe. You will notice that they have several things in common:
- Games from A-list development studios
- Support for all of the widely used payment methods
- Attention-grabbing promotions
- Adherence to strong regulator requirements
Another thing to notice is that not all of them are globally renowned brands, which means you don’t have to be a tech giant to compete in this space. What’s more a lot of these brands are sister sites. That means they belong to the same company. This can help you save costs for licensing. You acquire a license from one commission and use it for running multiple sites with similar layouts. After all, don’t put all of the eggs in one basket, try to get as much visibility as possible.
Focus on Mobile Market
You should not go into this business ignoring hard facts and statistics. Right now more than 40% of the global gaming market revenue comes from mobile games. While the majority of online casinos are mobile-friendly sites, a lot of them don’t have a dedicated app. This is something you should heavily consider. Even if it looks like an unnecessary expense, focusing on providing a superior mobile experience could help you get ahead of the competition.
Even if you have a fully functional website and app that is licensed and backed by top-tier software your success isn’t guaranteed. You need as many players as possible to generate profit, and that’s why visibility is the key to success. All of the operators that are listed on the review websites have a comprehensive affiliate program. Sure reviewers want to help readers find reputable gambling sites, but they also need to make money.
If you want content creators to mention your brand, or to recommend your online casino, there needs to be something for them as well. All of the safety features and games are there so that they can tell readers about you in good conscious. So, work on the compensation structure for your affiliate marketers and reach out to them to help them sign up for your program. Getting these mentions and links will send plenty of ranking signals to search engines and allow your sites to gain authority.
Agreements with Software Companies
Online casinos operate in a specific way. They don’t make games but rather host games from other software developers. They share the revenue and payout costs with these companies, and that’s how they generate income. To avoid big payouts casinos often incentivize players to claim bonuses with big wagering requirements.
This way even if players win something they still need to deposit more funds and gamble their winnings to be eligible for withdrawals. Sometimes even regular deposits need to be wagered to times before players can withdraw winnings.
This is a solid tactic if you still need capital and want to mitigate potential costs. However, players are fully aware of these terms, and they check your other terms as well. This doesn’t look good on your brand and it will be a big deterrent for players. What’s more, if they are unaware of the terms and you deny them payouts they will leave bad reviews.
To avoid this create more favourable bonus terms and try to get different agreements with game providers. Give them a higher percentage of generated revenue if they agree to take on additional payout costs. Of course, you also need to take into account that percentage of profits goes to the affiliate marketers, so you won’t get that big of a cut.
But all of these things should help you create a bigger user base. That on its own has value, and it will give you more leverage for re-negotiation agreements in the future.
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