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Have you ever wondered how casinos make money? Learn about all factors that make online gambling sites profitable for their owners. In this guide, we will explain the concept of house edge, commissions, and more.
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Online casinos are popular among players not only due to their entertaining functions. They are one of the best ways to receive some money without putting much effort. Play games, stay lucky, earn cash – it sounds so easy! In addition, you can claim a lot of the latest online casino bonuses. There were many cases when players hit the jackpot of millions of dollars at online gambling sites using bonuses. However, how can casinos make profit if they pay out such significant sums of money? Let’s figure it out.
How casinos make money?
It is not a secret that gambling is a profitable business. Taking a glance at fancy casinos in Vegas is enough to understand that they earn lots of money to maintain their luxury interiors, pay their employees, and give a first-class service to their guests. But how do they make such a great profit?
Speaking about casinos overall, they make money from the games considering the following factors:
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- Handle. A handle is the total amount of money that players bet in this or that game. To get an income, casinos need to find a way to boost their house edge and make players spend more time playing games. The more they bet, the more money casinos earn.
- House edge. This is a statistical advantage that helps casinos to make more money. The lower the house edge, the less chances casinos have to make a profit.
- Comps. With the help of comps, casinos attract new players who are supposed to become their loyal guests. Players have a chance to get various perks either for joining the casino or for spending a certain amount of time/money.
While it is more or less clear how land-based casinos make profit, the situation is a bit different with online platforms. Learn how casinos make money on the Internet and which tools they use besides house edge, handle, and comps.
Commissions
Some online casinos and games collect commissions before the start of the game. Although it is a rare occurrence, it is still possible to find online gambling sites that take a percentage of the initial bets. This is one of the best examples on how casinos make money online.
Free games
Online casinos often give an opportunity to play games for free. By doing it, they encourage people to try online gambling without spending a single penny. Usually, free games give positive results, so people become curious about playing with real money. They sign up for online casinos and start playing games for real cash.
Promotions and bonuses
Bonuses are similar to comps in which new/existing players receive perks for signing up and staying loyal. There are also various promos, special offers, and tournaments. By offering an exclusive opportunity to play more games and win money, casino sites attract new gamblers and heat their loyal players’ interest. As a result, hundreds of players accept the offers but there is a very limited number of winners.