One of the biggest benefits which online businesses have versus brick and mortar businesses is that they have significantly less overheads which impact their revenue. An online business doesn’t need to hire as many staff to man the business, they don’t need to rent out premises or at least not large scale premises and they can avoid costs associated with this such as utilities and insurances. What about an online casino however? A business which needs plenty of investment to run and one which needs to be fully operational 24/7, let’s take a look.
Online casinos may need less staff when it comes to bar tenders and waiters, but they still need to pay for quite a sizable team to keep things ticking over. This will include customer service representatives to help clients with any issues, technical support who will work around the clock to ensure that the technology side of things is running at full steam, as well as managers to keep everything together.
This is a world which is fiercely competitive which is why any online casino worth their salt will be investing heavily to get people to signup at the casino and to keep them at the casino in the future. This is easily one of the biggest costs which an online casino has and as more and more casinos open their virtual doors, more money will be required to ensure that gamblers come to their business, and not to the competition.
Domain and Server
Any online business comes with hosting or server costs as well as the cost of the domain itself and online casinos are no different. Because of the sheer magnitude of data which a business like this requires, most will have bought their own servers rather than renting space on another. This too incurs monthly costs and the more people who signup and use the site, the more server space will be required.
Because of the amount of money which is changing hands when it comes to the casino, plus the large volumes that they make each day, they will incur many costs from financial institutions in order to manage this level of finance. Furthermore online casinos have to pay for currency charges if they accept multiple currencies, they will also have to pay costs relating to insurances which keep this money safe.
Beyond this casinos can also expect to pay heavy amounts on lawyers and accountants in order to ensure that they are doing everything in accordance with the law, and in line with any new legal changes which may come about.
Because of the importance for casinos having a visually brilliant site and because of the need to utilize mobile apps for their clients, casinos also need to spend big when it comes to software developers. This can come in the form of a monthly contract or pay-per-job, either way it is a hefty cost which they must incur each month.
Running an online casino is certainly cheaper than a brick and mortar casino, but they still do have some heft outgoings.