How Much Do Online Casinos Make?

Online casinos are gaining popularity, and the industry is worth billions of dollars. From 2021 to 2028, the projected market growth rate is 13.70%, reaching $144.74 billion.

Europe has the largest online gambling market, with 3,211 businesses. The online casino regulations were favorable in the UK, Germany, and Italy and legalized owing to safe practices in the region.

In this article, you’ll discover interesting online casino statistics, including the top sites’ revenue, costs, and risks.

Highlights of the Article

• Online casinos’ average increase from 2018 to 2023 is 6.1%.
• The top casino websites worldwide own multiple brands.
• Bet365 is the leading online sports betting and casino gaming worldwide.
• BetOnline has one of the largest books on the web.
• DraftKings was among the online sportsbook pioneers in the US.
• Ignition Casino ranks as one of the highest-traffic poker sites worldwide.
• Wild Casino has 50 live dealer titles, the largest variety of game titles.
• Playtech, Microgaming, and Net Entertainment comprised 60% of online casinos.
• The estimated cost of running an online casino business is $1,868,000.
• Online casinos offer slot variety, which has a bigger edge than table games.

The Average Profit of an Online Casino

The casino industry is huge. Of the $61.5 billion gross gaming revenue in 2021, land-based casinos’ monthly average was $4 billion, and $830 million for online casinos.

While the casinos’ average income is $20.42 billion annually, online casinos accounted for an average of 6.1% yearly increase.

A lot of money is involved in the casino industry, and some operators know how to capitalize on this opportunity. Let’s explore how big the online gambling industry is.

How Much Do Online Casinos Make

Some might be surprised to learn that the top casino websites worldwide own multiple businesses. While Flutter Stars Group owns four and GVC Holdings five, Bet365 runs a single casino.

With an annual projected growth of 11.4%, reaching $158 billion by 2028, online casinos contributed to the revenue increase in the following countries:

• US ($35.5B)
• UK ($22.2B)
• China ($36.5B)
• Japan ($18.6B)

Let’s find out how profitable these online casinos are with their various gambling products and features.

7BitCasino

(Similar Web, npanet.org)

As a licensed Bitcoin online casino, 7BitCasino exclusively offers slots, roulette, Blackjack, and live casino games. Customers enjoy up to €100 or 1.5 BTC bonuses and 200 free spins. They can deposit and use that money to gamble online.

7BitCasino successfully utilized AI, blockchain technology, and gamification, making an annual revenue of $5-10 million.

The firm drew 468.1K total visits on the desktop and mobile app, with the top countries sending desktop traffic to 7bitcasino.com:

• United States: 44.23%
• Mexico: 12.87%
• Spain: 4.44%
• Netherlands: 4.36%
• Germany: 3.71%

What customers appreciate more than their competitors is the payment options. It includes online card payments, bank wire transfers, eWallet options, and multiple cryptocurrencies.

Bet365

(Similar Web, SBC News, casino.org)

Launched in 2000, Bet365 is the world’s leading online sports betting and casino gaming. Their comprehensive in-play service, live streaming on desktop, mobile, and tablet, is number one in Brazil.

Bet365 gained $1 billion yearly from its 212.2 million visitors. Operating in New Jersey, the firm expanded to Colorado and Ghana and partnered with Massachusetts’ Raynham Park Sportsbook.

Customers can win over $250,000 from 110 handpicked video slots, a progressive jackpot, and original slots. Various table games include roulette, blackjack, baccarat, and live and non-live poker.

Banking options include debit, credit, and prepaid cards, and e-wallets. Players have a 100% welcome bonus of up to $1,000 and can deposit cash at its physical casino in New Jersey.

BetOnline

(Similar Web, gamblingsites.org)

BetOnline and their sister site SportsBetting (AG) operate out of Panama’s legal gaming jurisdiction and are one of the safe options for US players today.

As BetOnline.ag receives loads of traffic from 17.5 million online sports gamblers, it’s no surprise that it generates $2-5 million yearly.

Online gamblers choose BetOnline, among others, for these reasons:

• Industry longevity & growing membership
• One of the Top 3 Offshore Sportsbook sites in nearly every category
• Exclusive entertainment betting odds
• Allows for members to join at 18 years of age
• Easy-to-use web design

It has one of the largest books on the web, as they keep up with the latest betting lines and explore more wagering options.

Privately held since 2004, the company has been in the gambling industry since 1991, establishing a solid reputation worldwide.

Bitstarz

(Similar Web, bitstarz-casino.org)

BitStarz has offered a complete playing experience since 2014. Customers would be overwhelmed to choose from over 3,700 games from top providers.

Various themes, types, and additional features meet every player’s needs. Players can expect online pokies, jackpot slots, BTC games, and table games categorized by genre and developer.

This feature was one of the reasons that attracted over one million visitors and generated $5-10 million for the company.

BitStarz appreciates its players by providing a welcome package and generous bonuses every week. Here’s what you can expect from BitStarz:

• Promotions and services
• User-friendly interface
• A vast number of games
• Accept crypto and fiat currencies
• 24/7 customer support

Café Casino

(Similar Web, Mercury News, gamblingsites.org)

Café Casino is a reputable online casino for American players. It is one of the top online gambling sites fully licensed by the Curacao eGaming Authority and is only accessible in the US.

Launched in 2016, the site has earned $2-5 million yearly from 203 games, including Blackjack, video poker, and slot machines. While Slots dominate the game library, Blackjack fans could select classic, European, or double-deck games.

Each blackjack variant has different table limits, mostly a $500 maximum. Because of this, the game is encouraged for recreational gamblers.

One reason that attracted 481.7K visitors is its laid-back and easy-to-use platform. Another reason is the welcome bonus, where new players can choose a 250% deposit ($1500) or a 350% deposit ($2500).

DraftKings

(Forbes)

DraftKings was among the first online sportsbooks launched in the US after the Professional and Amateur Sports Protection Act (PASPA) was revoked by the US Supreme Court in May 2018.

First launched in New Jersey, DraftKings was one of the leading online sports betting in the US. As a pioneer, the company belongs to the elite platforms in the industry today.

DraftKings is legal in these states, including Ontario, Canada:

• Arizona
• Colorado
• Connecticut
• Illinois
• Indiana
• Iowa
• Louisiana
• Michigan
• New Hampshire
• New Jersey
• New York
• Ontario
• Oregon
• Pennsylvania
• Tennessee
• Virginia
• West Virginia
• Wyoming
  

Only a few online sportsbooks can compete with their unique and polished user interface for desktop and mobile, with which 14.5 million visitors keep returning.

DraftKings was known in the early 2010s for its daily fantasy sports. Today, it is a publicly-traded company worth billions of dollars.

FanDuel

(Similar Web, Flutter)

Since its launching in 2018, FanDuel has become the go-to sports betting brand for 76.77% of males and 23.23% of females. Fans are treated with promotions and prizes on all major US sports.

Sports fans can bet on their safe and easy-to-use platform, whether it’s spreads or money lines, NFL team odds, prop bets, single bets, or same-game parlays.

Below are the states and countries where FanDuel is restricted, with options to access it:

Prohibited:

• California
• Texas
• Hawaii
• Florida
• Washington

Can access via VPN:

• UK
• Ireland
• Australia
• Canada
• Europe
• Asia
  

FanDuel is the US’ #1 sportsbook, a leading daily fantasy sports platform, and an innovative sports-tech entertainment company changing how consumers engage with their favorite sports teams and leagues.

Ignition

(Similar Web, Mercury News)

With hundreds of daily tournaments and casino game selections, Ignition Casino is one of the highest-traffic poker sites globally, recording 1.5 million visits annually and a 5.69% traffic increase.

Other features sending traffic to Ignition Casino include the following:

• 100% poker bonus for new players
• Omaha and Texas Hold ’em games
• Accepts Bitcoin, Bitcoin Cash, Litecoin, and Ethereum
• 24/7 customer support 
• Compatible with desktop and mobile devices

Ignition Casino games are competitive, the rake is generous, and the software is high-quality. It was established in 2016 with a license from Curacao and is available in 45 states.

Las Atlantis

(Similar Web, bestuscasinos.org, PR Newswire)

Launched in 2020, Las Atlantis‘ ocean-themed online gambling platform is a new deal for gamblers. The online casino has a standard Curaçao license, adding to players’ top legitimate online gambling choices.

Players can choose from over 200 RealTime Gaming’s best games. Fan-favorite slot titles and Blackjack and roulette classics were also available.

Navigating Las Atlantis’ is made convenient for players. The site’s marine adventure and treasure-hunting design are reasons 38.2K people visit the site. It’s quite fair for a relatively new online casino.

Depositing and withdrawing money is cheap and easy, with crypto payments accepted. The site also has an excellent support team for queries. Las Atlantis is accessible on any device and all operating systems.

mBit

(Similar Web, The Denver Post)

Crypto casinos are making their way in the online gambling market, and 468K people have been causing traffic yearly for mBit Casino since 2013.

Earning $5-10 million, here are some of the reasons this Curacao-licensed casino is competing in the industry right now:

• 3,500+ casino games
• Welcome package worth up to 5 BTC + 300 free spins
• Provably fair crypto games
• Instant payouts across multiple cryptocurrencies
• Mobile compatible
• Discord channel and onsite chat room
• Beautifully designed website with a sensible layout
• 24/7 customer support
• Engaging loyalty program

Red Dog Casino

(Similar Web, gamblingsites.org)

Red Dog Casino offers 145 slots, 14 video poker, 13 live dealer, 4 table games, and 3 specialty games. They love welcoming new players with bonuses of up to 260%. Most of their promotions come with free spins on select slot machines too.

Here are quick facts about why players choose Red Dog Casino:

• In-depth and transparent about legal compliance and player security
• Ability to login into Practice Mode to play games for free
• Fun VIP program with unique prizes and cool challenges

Launched in 2019 under Curacao licensing, this online casino is powered by RealTime Gaming (RNG games) and Visionary iGaming (live dealer casino). Its easy and simple site and app are available on all devices.

They offer all the big deposit methods with no transaction fees. Providing information on their site for verification is a feature that some online casinos do not have.

For customer service, it has two support phone numbers (one for American and one for Canadian players), an email, and 24/7 live chat support.

Slots Empire

(Similar Web, bestuscasino.org)

Slots Empire Casino has over 100 slots and casino games licensed by Curacao Gaming Authority in 2019. RealTime Gaming ensures the games are fair and never rigged.

Welcome packages of up to $7500 are provided for new and return players. The practice mode in every game has $1000 fun money. A live dealer casino is available when you’re feeling social.

While Slots Empire only offers one poker card game, the video poker library, various slot titles, and large progressive jackpots made up for it.

Besides device compatibility, Slots Empire is a safe and secure online casino that utilizes SSL encryption and account and identity verification to protect its customers.

Deposit methods include credit cards, cryptocurrency, and vouchers, with zero fees and instant processing times. Withdrawal methods include credit cards, bitcoin, and bank wire transfers.

Slots.lv

(Similar Web, gamblingsites.org)

Slots.lv is an online and crypto-friendly casino that opened in 2013. A wide selection of slots, tables, jackpot, and live dealer games were licensed by Curacao Gaming Authority. 

New players can choose bonuses between 300% ($1,500) for crypto users or 200% ($1,000) for credit card users.

As picked up with its name, Slots.lv is a slots casino with games from Betsoft, Genesis Gaming, and RTG. It also offers the Hot Drops Jackpots, available only at selected casino sites. 

Here is the breakdown of the Slots.lv 210 games:

• 154 slots games
• 26 table games
• 9 specialty games
• 8 video poker games
• 7 Hot Drops progressives
• 6 live dealer games

Slots.lv offers credit cards, crypto, and bank wire. Players can also transfer funds to another account. MatchPay allows PayPal, Venmo, Zelle, Apple Pay, Chime, and CashApp to make deposits.

1.1M visitors liked its simple, laid-back design with minimal ads and bonus pop-ups. The safety requirements, FAQs, and video resources were also provided on the site.

Super Slots

(Similar Web, gamblingsites.org, bestuscasino.org)

Super Slots has 300 online casino games, offering video poker, live dealer, and table games available on all devices in all US states. Most games have free play for customers to practice and try new games.

Funding your gambling account and withdrawing winnings can be done instantly through credit/debit cards, bank transfers, and cryptocurrencies.

Customers can reach out to Super Slots’ 24/7 live chat and emails. While the phone has yet to be made available, there are guides for various casino games.

The company has been operating since 1991 and has a wealth of experience since it launched Super Slots in 2020 with Panama’s gambling license.

Wild Casino

(Similar Web, bestuscasino.org)

Over 400 casino games await players on Wild Casino’s lush jungle landscape, including craps, scratch cards, and Teen Patti, which are rare on other sites.

While the demo version and sports betting are unavailable, players can explore 50 live dealer titles, the largest variety of game titles. Bonus and deposit options are also great for players paying with cryptocurrencies.

It’s also noteworthy that Wild Casino accepts all forms of cryptocurrency, major credit cards, e-wallets, money orders, and wire transfers. Email and 24/7 customer support are also helpful.

Wild Casino holds its license with the Panama Gaming Commission and is available to US players. It has been online since 2017, with gambling roots dating back to 1991.

Running an Online Casino

Every business starts with a plan to succeed, and running an online casino is no different. The several things to consider are licenses, games, websites, and unexpected expenses.

While a land-based casino operates in establishments, an online casino hosts its games on the website, and much of the costs go into that aspect.

Playtech, Microgaming, and Net Entertainment comprise 60% of the online gambling industry. These software providers have a $10,000 monthly rate and 15% to 25% of the casino’s winnings.

If you want to enter this lucrative business, find out how much you need before you get the ball rolling.

What Are the Costs of Starting an Online Casino?

Software

To get an online casino up and running, the gaming package must have over 400 games. The software should include the following several variations:

• Slots
• Roulette
• Baccarat
• Blackjack
• Keno
• Scratch cards
• Poker
• Specials

Package prices vary depending on the agreed royalty fees with the software developer. As customers may win a jackpot up to $200,000 or more, casino operators are expected to show a $300,000 excess if players cash out their winnings.

While some gaming packages only require around $100,000, the average is between $200,000 and $300,000.

Jurisdiction

Online casino licensing is much more complicated as licenses must be applied in each country where you host your casino.  Licensing laws and prices range from $2,000 to $150,000 annually, plus a 3% casino profits tax.

While some countries still prohibit gambling, buying gaming packages is legal in Malta, Curacao, Isle of Man, Gibraltar, Costa Rica, and Antilles in the Netherlands.

Website

Building a website is more than overnight work, especially for an online casino. It must be professionally built to make it work well. It costs $3,000 or more to hire a professional web developer.

Considering how complicated to build an online casino, casino operators are expected to invest in this department as it is the main platform of the business.

Staff

An online casino is no less than a land-based casino. It also needs staff for more efficient and smooth operation. However, it only requires a few people, as 8-10 members can do the work.

An affiliate manager is necessary to oversee the website, and a manager for customer loyalty. At the same time, at least three IT specialists are needed for the technicalities. Staff are expected to be available 24/7 for customer support.

Staff pay would cost $250,000 annually, but the pay is lesser in countries with low living costs.

Marketing

A top affiliate website with high traffic costs around $100,000 monthly. The affiliates to strive for are listed as ‘top affiliates’, which rank the search engine.

However, placing your brand on top indicates more pay with up to 50% of your revenue. Casino operators must allocate a $50,000 monthly budget for affiliates. 

Some ad services, such as Google Adwords, are slightly less to use, and taking advantage of them is a good idea.

Player Winnings

If your site uses Neteller, Skrill, Paypal, Visa, and Mastercard to accept deposits, you must fund these with significant money. Most require over $50,000, but Neteller asks for $100,000 before starting.

A start-up casino usually hires an outsourced payment processor for more efficient and quicker transactions. The service cost ranges between $20,000 to $50,000 monthly.

Total Cost

If we add everything, the estimated cost of running an online casino business is $1,868,000.The breakdown is shown below:

• Software package – $250,000 and up
• License – $125,000 more or less, depending on the country
• Website – $3,000 and up
• Payment processor per year – $240,000
• Staff – $150,000 or more
• Contingency fund – $500,000
• Marketing and Affiliates – $600,000

How Do Online Casinos Make Money?

(European Business Review)

Many Las Vegas casinos make money through non-casino services. While MGM Grand’s casino floors earned $4 billion, its rooms, food, entertainment, and merchandise accounted for $6 billion.

Although online casinos don’t have that privilege, all casino games have a house edge between 1% to 5%. Online casinos have a variety of slots, as it has a bigger edge than games like blackjack.

Regardless of big payouts, the house always wins. Casinos maximize the money they get from players while making their games more interesting for players.

Losses and Risks in Managing an Online Casino.

(Business First Online, SBC News)

Managing an online casino involves a lot of money, so knowing the risks is crucial. It includes volume, margin, regulation, technology, personnel retention, and recruitment.

Bet365 noted that some established brands in their home market could entice their customers, such as Entain, 888, and its William Hill subsidiary, Betfred, and Flutter Entertainment.

Here are some brands also operating in the US market:

• BetMGM
• Betfred US
• FanDuel
• PointsBet
• DraftKings
• Caesars Entertainment

Regulatory, legislative, technological, and financial concerns could also affect online casinos’ trading performance, especially since the UK’s Gambling Act review is underway.

To Sum Up

Online casinos are a lucrative business. As a one-stop shop for gamblers, it’s no surprise that this form of entertainment is gaining popularity and profit.

The wide use of the Internet makes online gambling more profitable. Online casinos bring comfort and convenience for people who do not want to gamble in a brick-and-mortar casino.

As a web-based business, the operating costs are much lower since there is no need to buy and maintain gambling machines and establishments.

Considering all factors in running an online casino, operators can make informed decisions and maximize online gambling popularity to break even.