From Land-Based Casino to Online Casino: Tips For Those Who Want To Go Online
According to research, online casinos occupy a significant part of the gambling market. In 2010 in the UK, for example, the share of online gambling in the gaming market amounted to 15.8% of £ 11 billion in gross winnings and was in third place after The National Lottery and betting agencies, while the share of casinos terrestrial was only 7.5%. The situation in the UK, the leader in the European gambling market, reflects the general trend: the land segment lags behind the online segment.
Instead of competing with online gaming, many land-based casinos go online and try to combine two strands into a successful business. It really is easier to enter the online market by having a casino that has already made a name for itself in the terrestrial world. Other advantages include: a large base of players already formed, various marketing channels, sometimes a ready-made legal database and finally the reputation of a well-established market operator. Therefore, an established terrestrial operator exploring the possibilities of the Internet has a very good chance of being successful compared to a start-up, among the information it is important for example to know video slots basics in comparison with other games and with the land bansed version. Before you start playing or investing inslot machines, you need to know the rules well.
Slot machines differ in the number of spinning reels (3, 5, or more reels) and in pay lines (10, 20, 30, etc.): the chances of winning depend on the number of pay lines. The operation of each slot is guaranteed by the RNG, an acronym that stands for Random Number Generator, an algorithm that guarantees randomness in online casino games.
In each slot you can find different game features:
Free Spin: allows you to play without withdrawing money from your gaming account;
Bonus Game: it is an additional game present within the main game that allows you to obtain prizes and multipliers following one or more player actions;
Jackpot: this can be a jackpot shared between various slots or present only within the single slot; the Jackpot game can be activated randomly on each linked game spin.
However, not everything is as easy as it seems. Experience in terrestrial business does not guarantee success in online business. Two markets are very different from each other, so to ensure an effective entry into the online gaming market, the following factors must be taken into consideration:
- Make sure you are ready in the legal sense
Before starting an online casino, you need to make sure that the gaming license used in land-based activities is also valid for online activities. Not all countries and jurisdictions offer the same offline and internet gambling licenses, so it’s best to consult a lawyer to make sure you are absolutely ready.
- Remember that financial planning is different for two areas
The financial operation of an online casino is different from that of a land-based casino. The net profit of a land-based casino is calculated as Total Cashout minus Total Withdrawal. This means that a casino’s profit is comprised of all the money that players spend on buying chips at the start of the day minus the total winnings that players withdraw from the cashier at the end of the day, that’s all.
The mechanism is more complex with online casinos. A player can have some money in his casino account, but this amount does not belong to the casino automatically. It may take some time for the player to spend his money on making a bet before he loses or wins or decides to withdraw it.
There are two parameters that indicate the profit of an online casino:
GGR (Gross Gaming Revenue, or Gross Revenue) = Total Stakes – total winnings, also called Hold.
NGR (Net Gaming Revenue, or Net Revenue) = Total stakes – total winnings – promotions – chargebacks – payment processing fees.
Payment processors and banks charge electronic payment processing fees between casinos and players. The percentage depends on the type of transaction (deposit or withdrawal), means of payment (type of debit/credit card, prepaid card, e-wallet, etc.), transaction currency, the amount transferred, etc.
Chargebacks are requested when the player claims that he has not deposited the money at an online casino and requests to remove the charge from his bank statement.
By “promotions” we mean the bonus granting policy used by almost all online casinos to attract players. Usually, this includes no deposit welcome bonuses or first deposit bonuses that can only be withdrawn after you have made a minimum of wagers with a minimum of money. It takes a deep understanding of bonus policy to correctly calculate a casino’s expenses and profits.
The financial operation of an online casino is heavily influenced by affiliate programs, commissions paid for the use of third-party software and other gaming providers, etc. None of this exists in land-based casinos so their financial operations and statistics are simpler in some ways.
- Don’t neglect the marketing issue
Marketing is an indispensable thing for any business, both new and well-established. Having a very successful land-based casino does not guarantee its popularity among Internet players. Large land-based casino networks don’t always manage to be as successful online. Only 20-50% of land-based casino players play their online counterparts. This means that without a proper marketing strategy and sufficient budget, land-based operators cannot expect immediate results and large numbers of players willing to play on their sites.
The good news is that a land-based casino has a ton of resources to launch a successful marketing campaign. Practitioners can try the following methods which have proven to be effective:
– promote an online brand in a land-based casino, publish flyers, place visual ads, etc;
– organize education centers at land-based casinos where qualified personnel can explain to people how to use the website and how to take advantage of promotions on the site;
– offer tablets with an internet connection to those who want to try the site, offer them promotional bonuses, etc.
In addition to the possibilities offered by terrestrial marketing, we must not forget the most effective online promotion tools such as SEO, publications, and magazines in the most relevant online media, affiliate programs, networking, etc.