Running a gambling business seems like a safe bet — it’s the players who are taking the risk, not the operators. But the truth is, even online casinos can go under if they’re not properly managed. Slotegrator, a leading developer of iGaming solutions, shares a rundown of six ways on how online casinos can avoid bankruptcy.
You need a good head for numbers to run an online gambling business.
There’s a long list of key performance indicators you need to track and analyze to see if your online casino is bringing in revenues or heading towards bankruptcy.
Your gross gaming revenue (GGR) and your net gaming revenue (NGR) give you a general overview of how you’re doing — these are how much money you’re generating from gaming activities before you account for all the costs of running a business.
If those numbers aren’t where you want them to be, it’s time to zoom in on other performance indicators. Bets-to-deposits and NGR-to-deposits measure how much of your players’ deposits they’re wagering and how much they’re losing, respectively. You should also look at your number of conversions, retention and churn rates, daily active users, monthly active users, player lifetime value, and average revenue per user.
Getting into the nitty-gritty of all that granular data can point you towards the cracks in the ship you need to patch up.
But in the end, whether an online gambling business succeeds or fails depends on its ability to balance a single equation: money coming in vs. money going out. Tip to one side – you’re sailing in an ocean of profit; lean to the other, you’re going under administration and kissing your yacht goodbye.
Below, we break down 6 different ways of avoiding bankruptcy in the gambling business.
Get your players to love you
In an industry rife with competition, the businesses that rise above the pack are those that find ways to keep players coming back for years on end. Brands have to fight tooth and nail to keep their players from migrating to other platforms and those without an adequate marketing and player retention strategy.
Players are less likely to abandon you for a competitor if your site’s value increases over time in their eyes. The best way to do that is with a loyalty or VIP program.
When your users can join a loyalty program, every deposit, spin, and bet takes them one step closer to the next tier of the VIP hierarchy. As their deposits get bigger, the program offers them more significant rewards and better, more personalized customer service.
The more time and money they spend on your online casino, the less likely they are to be tempted away by another platform. Why do you need to start over and lose your investment when you can keep your players engaging instead?