Many online casino enthusiasts can see how enthusiastic frequenters of gambling sites are. During the pandemic, virtual casinos became even more popular as people looked for ways to entertain while their communities were under lockdown.
Entrepreneurial minds would be quick to think that online casinos can mean good business. Does this proposition make sense? Do casinos make big money? Read along to find out the answers.
The proliferation of online casinos over the past months, in a way, makes the idea of casino businesses enticing. A report from Technavio estimates that the global casino market is set to grow by a compounded annual growth rate (CAGR) of 10% during the 2020-2024 period. On a year-on-year basis, the market is projected to have grown by 13.9% in 2020. These numbers are in line with a similar study by Markets and Research in late February 2020, showing a 10% CAGR for the 2020 to 2026 period.
Despite the weaknesses in various aspects of the world economy, online gambling is poised to have double-digit growth. The report adds that 50% of the expected market rise is attributable to the Asia-Pacific region.
In India, where offshore gambling sites are not illegal, various casinos are already serving many Indian players. The newly-established Pure Casino, for example, offers online casinos and live games not only to Indians but also to Bangladeshis.
Many players are choosing Pure Casino in the Indian market even though it is one of the relatively new players. This can serve as proof that new players in the online casino space have a good chance of competing even with established gambling sites.
It is never too late to start an online casino that serves India. The country has a large population and a growing gambling market. Even better, online casino businesses are not limited to serving players domestically. They can reach players in different parts of the world, provided that there are no legal restrictions imposed.
What makes casinos notably viable is the concept of the house edge, which is the guaranteed percentage of return to the gambling site. Different games have different house edge rates, but they all benefit the casinos. A 5% house edge on slots, for example, means that the casino always gets at least 5% of the total bets made in the games.
Given a decent number of regular players, it is unlikely for an online casino to suffer from losses or go bankrupt. The only problem is when the casino fails to attract players. Fewer players mean not enough bets to cover the costs of the servers, game licenses, and staff. With effective marketing, an online casino can provide a good stream of income.
However, online casino operators need to make sure that they are always mindful of regulations and the possibility of fraud. Serving players in a country where online gambling is illegal results in costly and cumbersome legal entanglement. Also, not monitoring player activity for possible fraud and collusion can create problems.
Online casinos can be good business, but prospective operators need to be properly acquainted with the mechanics, market dynamics, and legal requirements.