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Market Overview of Online Gambling Business
The global online gambling industry is one of the biggest and most rapidly expanding markets today. The popularity of online gambling is increasing rapidly. More than 80 nations have legalized online gambling and Europe has the largest online gambling market in the world. Latin America represents the second best market to target in 2022-2025 after European market. Several U.S States are set to legalize online gambling in late 2022.
According to VIXIO GamblingCompliance, online gambling revenue in Latin America should reach the jaw-dropping US$2.6 Billion by 2025. Brazil, Argentina, Chile, Colombia, Peru, Venezuela, Costa Rica and Mexico are considered to be the most prolific gambling countries in the region. Online real money gambling is spreading worldwide and is expected to continue to grow in the coming years.
Online gambling revenues are growing at the incredible rate of over 10% CAGR. $12 billion in revenue was earned in 2005, $29.3 billion in 2010, $44 billion in 2016 and is expected to reach USD 97.69 billion by 2025, growing at a CAGR of 11.31%.
According to Juniper Research, online gambling bets reached $700 Billion in 2018, rising from $620 Billion over the previous year. In their report, Mobile & Online Gambling: Casinos, Lotteries, Betting & VR 2018-2022, Juniper Research identified an 11.4% growth over the period, as new markets and opportunities for online casino operators come on stream. The report also revealed that by 2024 online gambling bets could top as much as $1 trillion, with the number of online gamblers rising to 684 million.
The major trends in online gambling and betting globally are mobile and social gambling. Mobile gambling is expected to reach 80% of gambling revenues by 2024. Predictions of unlimited growth for casino and poker gaming for mobile phones and tablets with internet access increase the potential future profits of worldwide online gambling.
POTENTIAL ONLINE CASINO PROFITS
As an online casino and poker gaming website operator you could generate millions of dollars within the first few years in business. Your online gaming website can generate revenue for you 24-hours a day, 365 days a year. The following chart demonstrates the potential profit for a casino site owner. A $1,200 per day win for the house could represent as few as 24 people playing in your online casino.
Number of Players |
Accumulated Player Loss Per Day |
Accumulated Player Loss Par Month |
Net Monthly Revenue |
Net Annual Revenue |
|---|---|---|---|---|
| 3 | $150 | $4,500 | $2,700 | $32,400 |
| 5 | $250 | $7,500 | $4,500 | $54,000 |
| 10 | $500 | $15,000 | $9,000 | $108,000 |
| 18 | $900 | $27,000 | $16,200 | $194,000 |
| 24 | $1,200 | $36,000 | $21,600 | $259,200 |
How Online Poker Rooms Profit?
Online poker rooms generate the bulk of their revenue via 5 methods:
- By collecting a “rake” from each pot, usually 3% to 5% of the cash in that pot. Each online poker room determines its own rake
- By collecting a “rake” from each pot, usually 3% to 5% of the cash in that pot. Each online poker room determines its own rake
- By charging entry fee to pre-scheduled multi-table sit-and-go
- Some online poker rooms also offer casino games like black jack or side bets on poker hands where the player plays against “the house” for real The odds are in the house’s favor in these games, thus producing a profit for the house.
- By investing the money that players deposit. Since the sites do not have to pay interest on players’ bankrolls, this method can be a significant source of
- By charging a monthly membership fee (play-for-cash poker rooms)
Keep several points in mind:
- You are not responsible to pay the winners!
- An average player can play between 40 and 70 hands per hour.
- The rake at the table can vary based on number of players, the game and limits. The rakes range from $1.00 to $3,00 per pot.
POTENTIAL ONLINE POKER ROOM PROFITS
The potential profits of the online poker industry is enormous! The amount gambled on poker websites around the world since 2012 is estimated to be more than $100 billion! The top online poker rooms are profiting over $1 million dollars each and every day! Around 1.5 million people play poker online regularly for real money and the number is growing by 100,000 a month.
If you had just 20 of your players playing an average of one hour per day, you could be making income from over a thousand pots a day just from those players. Multiply that by 30 days in a month or 365 days in a year and I think you will get the idea.
Here’s a scenario, which you can adjust to fit your personal goals. You generate 100 new members per month. Of these 100 members, your average profit per member is $50. You average a 75% retention ratio for your new members. (75% This is about average for most poker rooms). For your first month of sales, you will earn five thousand dollars based on this example. By the time you are at the end of the fourth month, however, your profits can potentially be over $13,000 dollars per month.
The following chart demonstrates the potential profit for the owner of multi-player poker gaming site.
Month |
Number of Sales |
Profit per Sale |
Retention Rate |
Old Sales x Retention Rates + New Sales |
Monthly Profit |
|---|---|---|---|---|---|
| 1 | 100 | $50 | 50% | 0 X .75 + 100 X $50 | $5,000.00 |
| 2 | 100 | $50 | 50% | 100 X .75 + 100 X $50 | $8,750.00 |
| 3 | 100 | $50 | 50% | 175 X .75 + 100 X $50 | $11,550.00 |
| 4 | 100 | $50 | 50% | 231 X .75 + 100 X $50 | $13,662.50 |
