Global Online Gambling Market Expanding Fast

Published Friday, August 11, 2017 - Online-Casinos.com
Global Online Gambling Market Expanding Fast

There are not many industries where the impact on the environment is small, the profits fairly good, some governments encourage it, yes there aren’t many like the online gambling business.

The 2016 Global $35.97 Billion Online Gambling Market is expected to grow to $66.59 Billion USD by 2020 but that growth is very geographic specific. It is interesting to note that the estimations are based on a legal framework and do not take into account the underground internet betting activity.

Where does all the money generated by these casinos go? The average profit suggested may not be very accurate and calculating the costs of running an internet casino is basic speculation. The biggest expense most online casinos have is software after all the games are virtual and are required to follow certain regulatory rules while remaining creative. It has been suggested that the Playtech, Microgaming and Net Entertainment platforms power sixty percent of the online casinos of course there are many other to fill the void that expands daily. These providers charge large to lease their software and they receive a 15% portion of the casinos win.

The operator’s expenses are many with most online casinos running what’s known as an affiliate program. IN order to remain on the best seller list in the internet betting business casinos need traffic directed to their particular web location. Most information portals advertise casinos in exchange for a commission on each player. There is the Cost Per Acquisition flat rate that the casino pays the affiliate for each player which signs on and deposits. Then there is revenue sharing or revshare where the casino pays the affiliate a percentage of the players’ losses.  

The list of costs and the factoring in of other regulatory and government fees and taxes the possibility of a casino thriving may look bleak but in fact around twenty percent of the casinos are making eighty percent of the profits.

 

Related news

Return to Latest News