Have you ever wondered why online casinos are gaining so much popularity nowadays? Do you ask yourself the revenue that is involved in an online casino business? If yes, this is the perfect article for you as Kevin Cohran tells us how much online casinos generate in 2020 from his viewpoint. You can view his profile here.
The gambling industry has been growing for decades now. In 2011, the industry was worth $25 billion. It’s worth increased to $51 billion in 2018 and nearly $140 billion came from the online sector of the industry. This means that despite a large number of casinos that are injected into the internet space, the gambling market keeps expanding.
If you want to start an online casino, then it is very important to know how much profit you would make and the best areas to focus on. Most of Europe and America is dominated by top gambling sites like the all slots casino in Canada. New online casinos are springing up every day. After all, in this business, there are many ways to attract new players.
In countries like Canada, Australia where gambling has been legalized they are millions of customers and the number keeps increasing day by day. Reports have stated that the online gaming industry will continue growing in value from an estimated $94 billion in capitalization by 2024. The same forecast reports that the global revenue from the casino market will hit $525 billion i.e. including both land-based and online.
The cause of this upward drive in online gambling is due to improved infrastructure, greater outreach, an increase in the number of female gamblers, and a growing number of countries legalizing online gambling.
ONLINE CASINO MARKET IN US
In the northern part of America, gambling is most popular there as casino gaming was legalized in 1931. In 2018, the Supreme Court held the Professional And Amateur Sports Protection Act (PAPSA) as a body that criminalizes online gaming and this change in regulation led to many states passing legislative bills that legalize online betting in their respective states.
With the opening of the US online casino market, it is projected that many online gambling companies will struggle to get a piece of the $150 billion online gambling companies will struggle to get a piece of the $150 billion Americans makes in illegal online wagers.
Canada is not left out as there is also an increased number of citizens indulging in online casinos. In 2017 CA $17.3 billion was generated from the Canadian Gaming Industry. The numbers are not going down but rather increasing as every day new online casinos offering new bonuses, innovations, strategies, will keep springing up to attract new players to themselves.
ONLINE CASINO MARKET IN UK
The UK gambling industry is the most advanced and well regulated among the top gambling countries. Since the legalization of online casinos in 2005, the number of gamblers has steadily increased from 9.7% in 2008 to 19% in 2020 and we should expect an increase in the trend in the nearest future.
ONLINE CASINO MARKET IN SOUTH-EAST ASIA
Macau is the city that generates the most revenue in casino games, that was after topping las Vegas on the charts. The extreme success of land-based casinos in Macau and the southeast region in Asia is not lost on the regulators as they are still making sure online gambling remains illegal in their areas. Despite these restrictions, many online casinos have continued to see an increase in adoption by new players. This growing number of online gamers in the region can be attributed to a better internet connection, mobile-friendly sites, and mouth-watering bonuses.
WHAT’S THE ESTIMATED REVENUE GENERATION OF AN ONLINE CASINO
It is not entirely possible to accurately know the revenue generation of an online casino but we can have a rough estimate of what they make on a monthly or yearly basis. Follow me through a little survey carried out: First, it is estimated that the online casino in operation which shares this month. Considering the number of online casinos in operation which share this amount, then we can possibly have an idea although the reality may be different.
Assuming, there are up to 5000 registered online casino sites in Canada then we assume to have each site generating about $1million a month. Applying the Pareto principle, the top 20% of online casinos make 80% of their profits then the value reduces. When you now consider affiliate commissions and software being paid in the end you may realize half a million dollars in profit per month. We should know well that this can only be an estimate as the cost of running such sites with updates and maintenance is high which has to be taken into consideration.
FINAL WORDS
We cannot possibly determine the exact amount that online casinos generate in 2020 but we can be assured that the revenue is large and a good online casino is making plenty of money even with the high expenses involved in running such. Although there are other factors that determine the outcome of such business as to where you live, legal risks involved, online marketing strategy, and when there are no strict limits on which countries you accept players from.