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Who profits of gambling?

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Various games of chance have been appealing for thousands of years. Already in ancient Rome, a wide variety of gambling games were played and the construction of the Great Wall of China was financed by lottery-style fundraising. Today, gambling is easily accessible to all adults online. The internet is full of various online casinos, poker rooms and betting offices. And this fact should not be surprised, because by organizing gambling, you earn well.

However, there are also downsides to this, as running an online casino involves a surprisingly long slide. By no means do all of the player’s losses go directly to the Casino’s winnings, but a big slice passes between the other players who maintain the activities offered by the online casino in one way or another. It is obvious that e.g. the servers and the employees pay, however, in addition to these, the Casino still has a lot of other expenses around their necks and these ”expenses” make a lot of money!

Money transfer services

Regardless of the method of depositing or withdrawing, the online casino has to pay a small slice for every euro going in and out. One of the best earning groups in the gambling industry is money transfer companies. Evidence of this can be seen, for example, in the recent acquisition of the entire Skrill online wallet by Optimal Payments for a whopping € 1.1 billion.

Licensing States

In order to be able to legally offer gambling, an online casino must have a legal Gaming License. Obtaining a license on its own is complicated and requires a lot of resources, which in turn takes money. In order to obtain a gaming license, an online casino must have a certain retail amount in its bank account at all times and an annual license fee is paid to the licensor.

There are other conditions for obtaining a game license — a certain way of processing customer data, offering only games from approved game manufacturers, etc.

Malta is one of these countries in Europe that issues gaming licenses. Gambling creates a huge amount of jobs in a small country and Malta is one of the few EU countries whose economy has continued to grow. Thanks to this, the biggest gaming companies that are headquartered in the country that issued the gaming license.

Game manufacturers

Few online casinos make their own games, they buy the games they offer from third-party game manufacturers, who are paid a certain share of the gaming revenue in addition to the set-up costs. For example, the gaming manufacturer of RAY’s online casino is Playtech, to which RAY pays a small share of the gaming revenue. Top manufacturers: NetEntertainment, Microgaming and Playtech make an excellent account with relatively little risk.

Affiliate Marketers

Of course, online casinos need to get customers from somewhere and the easiest way to get visitors online is through affiliate marketing. Online casinos pay affiliates a small slice of the revenue from customers they get through them. This revenue share can be anything between 5-50% or a one-time fee for a posted player. Most of the well-acquiring affiliates are large companies with huge market machinery. Among these companies is the listed Israeli-owned XLMedia, which also owns most of the successful gambling affiliate sites in Finland.

Advertising costs

Affiliate marketing alone is not enough to get enough customers for an online casino. In addition to this, online casinos have to advertise their site in other ways, such as on TV, online, at sporting events, etc. In the Finnish market, MTV & Discovery Earns very well thanks to online casinos.

Winning players

After all, no one would play gambling if nothing wins them from time to time, meaning players also make money in the business. It may be hard to believe, but some online casinos have had very long losing stakes because of players who are too lucky. However, it must be remembered that in the long run, the house always wins.

It doesn’t even list all the potential expenses that online casinos have yet, but it wasn’t meant to tell who is making money gambling. Safe money makers include money transfer companies, game manufacturers, licensing states, and TV companies and other ad networks also receive a secure return.

Although large sums of money circulate in the casino business, the productivity of an online casino is not always set in stone, as the above costs can eat up drastically. A good example of this is the LeoVegas online casino, which is probably quite familiar to many because they actually spend more on marketing than they earn. According to rumors, additional investors have already been sought in a few rounds. The same rumors say that LeoVegas’ goal is only to grow big and sell the entire package at a hard price to Unibet or Betsson. To do, so to speak, the same as Jasper Pääkkönen’s and Markus Selin’s game company — good deals, from which we reported earlier.

Gamblerforever.com would like to remind you that in someone’s pocket those winnings will be wrapped up and you will decide for yourself how much you are willing to lose, so play with moderation.

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