The online casino space has been booming at the moment, especially with the introduction of new gambling methods based on slots. Even though online gambling is around for more than two decades, in the past couple of years, this industry has experienced the biggest rise in popularity.
There are a couple of reasons for that. First of all, as technology became more advanced, it gave people the opportunity to play their favorite casino games without leaving their home either from their PC, laptop, tablet, or mobile.
Also, this new trend forced countries to invest in new technological innovations in order to stay connected to the rest of the world, which increase the number of people with access to such technologies.
All of this resulted in a huge spike in online gamblers, and the pandemic outbreak only intensified this trend. With that said, the online casino space became heated involving a lot of competition, as you can see in the 1GoodBet website, which forced casinos to look for different methods for attracting customers.
This led to a new era of online gambling where casinos now have thousands of slot games, table games, and other creative ways where people can gamble.
But out of which games do casinos make the most money? Well, let’s dig deeper into the online gambling sector and try to understand where most of the revenue comes from.
How Much is the Online Gambling Market Valued?
Before we analyze which games bring casinos the most money, let’s find out how much money are we talking about.
The online casino market experienced an exponential rise in revenue-generating $60 billion per year according to Statista. In the next five years, experts predict that the online gambling industry will double its value reaching well over $100 billion in market value thanks to the new and innovative games that will attract new players.
In order to get a better idea about the value of the online gambling market, we have to compare it to other industries. If we take the entire music industry, which is massive, it is only valued at $23.1 billion.
How do Online Casinos Make their Money?
Even though most people think that physical casinos make most of their revenue from games like slots, poker, and blackjack, actually the majority of the revenue for land-based casinos comes from non-casino services such as rooms and food, merchandise, and entertainment.
However, online casinos don’t have that kind of privilege, so how do they actually make their money?
Most of the revenue comes from online slots. Depending on the casino and its strategy, online slots generate anywhere from 70% to 80% of the total revenue. People love to play slots, and these new interactive games will bring even more attention to this section in the online gambling market.
Slot games are based on a random number generator (RNG) which runs a series of symbols on 3-7 reels. Each winning combination is totally random, but the casino optimizes the house edge. This means that the casino or the software developer can tune the slot machine to make more or less money over a certain period of time.
Slot machines are always profitable for online casinos just because it is a pre-defined algorithm that has a fixed percentage of what it takes out of all bets.
In comparison, table games at online casinos generate anywhere from 5%-20% of the total revenue. So, even though games like poker, roulette, and blackjack are popular and fun to play, compared to slot games they are just penny change for the casino.
With that said, some casinos actually make a lot of money from table games. However, these are specific online casinos that don’t offer a slot option for people to play.
So, the majority of the profit at most online casinos comes from slots. This is why online casinos are forcing such games on players and since most of them are fun to play, it is a win-win situation.