Ever wondered what it’s like to have your own casino nowadays? Well, an online casino that is. Setting up a “real” brick-and-mortar casino would require millions of dollars in capital investment, plus tons of legal paperwork that would make one’s head burst.
An online casino is not much different, we suppose. It would still take a lot of money to operate, but the dynamics are different right? Well, some online casino owners have graciously shared their wisdom and experience on Reddit.com, a community/forum website graciously styled as the “front page of the Internet.” Here are some of the key takeaways that we’ve learned from them:
1. Wondering if that gambling site you have signed up for is legit? Poker-only online gambling rooms are easier to trust with money since players are only playing against each other with their own money- the room just takes a cut. For casino sites where there are a multitude of games that can be played (e.g. baccarat, slots, blackjack, roulette), there is a significant risk. The establishment basically depends on people depositing money with them and losing it through their games.
2. Most online casinos do not use or build their own framework for running the games. The rooms are basically just skins or API that is part of another bigger network. The online casino owners pay for the privilege of using the backend software, which are constantly audited and checked by a number of gambling regulating bodies.
3. “Can online casinos be rigged?” is one of the main questions that online casino owners answer all the time. Yes, there were online casino scandals that involved rigged games and “superusers” in the past, but these were very rare exceptions and not the norm in the world of online gambling. Online casinos earn a lot of money from the rake alone, so there really is no need to rig anything. Rigging makes players go broke and turns people away, making it generally a bad business practice for any self-respecting online casino to even consider.
4. The number one obstacle for most online gambling establishments right now is the increasing amount of legislation that is being heaped on the industry. The United States outlawed online gambling in 2006 (since legalized again just this year), halving the share prices of top online betting firms overnight.
5. Once upon a time, online casinos used to give very generous deposit bonuses to attract players. Unsurprisingly, lots of scrupulous players took advantage of these bonuses and made a living out of exploiting them whenever they can. These cost the casinos a lot of money- one online casino owner even reported that he lost 50,000 euros in the span of one month just from deposit bonuses alone.
6. The profit margin is a variable figure. The establishment can make a $100 off a player in one month, or they can make a $1000. Though they may have little physical infrastructure, online casinos still have a lot of expenses- deposit fees, staff, rakeback, marketing, affiliate payments, and software fees.