Online casinos are relatively new within the gambling landscape, which stretches back hundreds of years in some countries. Although many loyal gamblers continue to visit land-based casinos, players are wondering whether online casinos are more profitable than their brick-and-and mortar counterparts.
In short, online casinos are likely to be more profitable for players than landbased establishments, however it depends on a variety of factors, including the casino platform itself.
Game Variety
Online casinos are known to offer a variety of games, greatly surpassing the offerings of physical casinos. Casino floors are limited by the available space for slots and table games, but online platforms have no limitations and can offer hundreds of different types of games and varieties in the game type itself (e.g. various themed slots).
A wider variety of games means that online casinos provide more opportunities for players to win money. Online casinos also offer players the option to try out new games for free with free spins or demo games. Physical casinos can’t offer this option, and online gamblers may just discover a new game that turns their luck around and offers big jackpots.
Multi-Currency Transactions
Physical casinos tend to only accept the currency of the jurisdiction in which they operate, so US casinos will only accept dollars. This can be challenging for foreigners who have to convert a significant amount of funds from their country’s currency to the currency the casino accepts. It often acts as a deterrent for many players who want to avoid paying exchange fees or losing money due to fluctuating exchange rates.
Most online casinos will accept many of the largest fiat currencies, including dollars, euros, and pounds. They also accept cryptocurrencies like Bitcoin and Ethereum for both deposits and withdrawals. Casinos that accept crypto offer many other benefits too, including lower transaction fees, more anonymity, and faster withdrawal speeds. A fast withdrawal casino allows players to access their winnings within minutes, whereas physical casino winnings can take a few hours to days to reflect in a player’s bank account unless they opt for a cash payout (which often has maximum limits).
Convenience And Accessibility
Going to visit a land-based casino can be an entire ordeal. It can involve a costly weekend trip to a state where gambling is legal, or even if you live close to a casino you still have to get in the car or use public transport to get there.
The convenience and accessibility of online platforms is simply unmatched. These sites are free to join, and requires no time commitment to get there. The longest part of the online gambling process is the KYC verification system which can take a few hours to verify a player’s identity. However, this process is entirely free, and the avoidance of any traveling costs counts in the favor of an online casino’s profitability.
Online casinos can be accessed at any time, from a desktop computer, laptop, tablet, smartphone, and even some smartwatches that offer iGaming apps. This accessibility presents a lucrative opportunity for the player, who can quickly grow their funds at any time, any place, as long as they have an internet connection.
Online platforms are also more profitable for players since they are not spending any money on hotel stays or food and drinks at the casino.
Operating Costs
Both online platforms and physical casinos have operating costs. Operating costs of land-based establishments include overheads, staff wages, security systems, and pay for the games on the floor. These casinos require significant capital to get started, and it can take years before the casino breaks even.
Online casinos, comparatively, have much lower operating costs since they are hosted online. The casino operator will only pay to register their license and perhaps pay for web hosting and a handful of staff.
The lower operating costs trickle down to the player, who get to enjoy a larger percentage of their winnings as well as better promotions and bonuses since the casino does not have to be too concerned about covering its own costs by taking from the players.
Bonuses And Promotions
All reputable online platforms will offer promotions and bonuses to their players, which makes gambling on these sites much more profitable. These bonuses can help players increase their bankroll or play games for free.
Common bonuses and promos offered by online platforms include:
- No deposit bonus: This bonus allows players to gamble without risking their own money. The casino offers a player a limited amount of games to play for free, with real-money payouts.
- Welcome bonus: This is a bonus offered to new players. It can be a direct deposit to your account, a set amount of free games, or free spins for a specific slot game.
- Free spins: These are offered when a player makes a deposit or signs up to a platform and allows the player to enjoy a certain amount of free spins in a slot game.
- Deposit match: Many casinos will match a player’s deposit amount, especially when they make their first deposit on their account.
- Reloading bonus: This bonus is also called a loyalty bonus and is rewarded to players who make multiple deposits. They receive a percentage of their deposit as a bonus.
- Payment method bonus: Players receive this bonus when they select a specific payment method. Casinos tend to prefer specific payment methods that have higher transaction costs to cover their expenses, and will over players a bonus who use this method.
- High roller bonus: Casinos love high-spenders and will offer them perks and bonuses to encourage them to keep playing, like a deposit bonus or VIP experiences.
- Referral bonus: This bonus is offered to players who get their friends to sign up for a platform using a unique referral link. The bonus is either a fixed amount or a percentage of the referral’s first deposit.
Although physical casinos sometimes offer seasonal promotions and bonuses, they’re less profitable than online offerings. Players must ensure they read the terms and conditions of the bonuses though to make sure they meet the requirements and there are no hidden surprises.
Market Competition
There are thousands of online casino platforms accessing the same target audience. For that reason, online casinos are striving to attract and retain users by offering lucrative promotions. The physical casino market is less crowded, and land-based establishments don’t have to offer the same promos as online sites, making them less profitable.
Also Read: How Casinos Use Business Tactics to Keep Players Coming Back
