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Business Model of an Online Casino

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How An Online Casino Is Organised

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Business Model of an Online Casino, How Casinos Work

Casino Model

Online casinos have operated since 1994. That was long before most households had internet access, and casinos had limited growth and profits. From around 1999, people in their homes have been accessing a dial-up internet connection. Online casinos started experiencing an increase in popularity, growth, and revenue. Since 2009, online casino revenue has increased by nearly 10 per cent per annum. Recently, the emergence of tablets and smartphones allow people to access online casinos on the go. This increased the value of online casinos exponentially, and the trend is expected to continue.

Online Casino Business Model

It is possible to describe the online casino business model as follows: it is a website where people can play for cash. In general, everyone continues with the gambling scheme that has been tested for decades. According to this, consumers fulfil their gambling desire, and casino owner takes money that they lose. Over the past 20 years, the online casino model has not fundamentally changed. Country-by-country regulations have slightly altered the model, but the fundamentals remain the same. Online casinos, like, are based on some of the latest market’s best models. For a large number of players, Internet gambling remains a popular pastime. The model is scalable, with growth anticipated if the US drops its online gambling restrictions.

Online Casino

There are three types of models, depending on how an online casino is organized:

  • Independent creation, opening and launching from scratch of a gaming site.
  • Buying a casino franchise or White Label Model.
  • Creation of a turnkey casino.

The first and third options assume that you are taking all the money you have earned, well, except the taxes. However, only if you are working under a license for gambling. But buying the franchise means you’re going to give a provider a certain percentage of your earnings. The fixed costs of an online casino include promotions, payments for affiliate programs, fees to the Technical Support Center, SEO promotion, hosting and a domain, website design improvement, quick error resolution, government deductions and other fees.

However, income always comes the same way. First, you spend money on advertising — gamblers find out about your website, visit it, and, if they like the offered game conditions, they create an account. People deposit funds to participate. It is not only necessary to have a flawless reputation, but also a wide variety of games, slots from multiple manufacturers, as well as rewards, offers, discounts and good prizes for first deposit or a big bet.


Since 2007, online casinos have been the most lucrative online business model. The model has been increasing due to the increase in games offered and the availability of high-speed internet to most households. Regulations that are introduced on a country-by-country basis work both to benefit and restrict online casinos. While obtaining a license to open an online casino used to be relatively easy, laws now limit the amount of those licenses that can be permitted annually. There is still room for new and developing online casinos on the internet at the moment. Nevertheless, as time goes on, the limitation on opening up new sites may make entering the lucrative market increasingly difficult.