Owning a gambling business seems like a safe bet: after all, it is the players, not the owners, who are at risk. But the truth is that even online casinos can fail if they are not managed properly.
The owner needs to be good with numbers to manage the gambling business and to be careful with online casino UK reviews to accommodate all wishes.
There is a large list of key performance indicators (KPIs) that help to track and analyze processes to understand whether the casino is profitable or heading towards bankruptcy.
Gross Gaming Revenue (GGR) and Net Gaming Revenue (NGR) will give an online casino owner a general idea of the state of affairs – these indicators show the earnings from gambling activities before expenses are deducted.
If these figures are not what you would like, it is time to pay attention to other indicators. Wagering to deposits and NGR to deposits measure how much of the deposit players wager and how much they lose, respectively. You should also keep an eye on the number of conversions, player retention and churn rates, number of active users per day and per month, player value and average revenue per player.
Key performance indicators (KPI) for online casinos
Every online casino needs benchmarks by which to measure progress. KPIs (Key Performance Indicators) – key performance indicators – can help with this.
If you dive into all the details, you can find a crack in time and patch it up.
Ultimately, whether a business succeeds or not depends on its ability to balance the ratio of funds received to resources spent. On the one hand, the owner sails in the ocean of money, on the other – says goodbye to his yacht and drowns in administration.
Below are six actions that will help prevent bankruptcy in the gambling industry.
- Do everything to make your players love you
In an industry built on competition, the business that can retain players and motivate them to come back again and again stands out. Brands fight tooth and nail to keep their players from switching to other platforms.
Users are unlikely to leave or trade one platform for a competitor if that platform increases its value in their eyes over time. The best way to achieve this is through loyalty and VIP programs.
When players join a loyalty program, every new deposit, spin and wager brings them closer to the next level of the VIP hierarchy. As their deposits increase, they should be offered greater rewards and better, personalized customer support.
The more money and time they spend at one casino, the less likely they are to switch to another platform. Why start all over again and lose your investment if you can just continue to build up your status?
- Keep up with the times faster than your competitors
Demographics can fluctuate over time and player tastes change with it. Player preferences should of course be the first thing to consider when choosing games for your portfolio.
On the other hand, some things remain unchanged, such as old-fashioned and time-tested classics. Game developers use fruit slots everywhere for a reason: there have always been and always will be players who love them. That is why almost every provider in the iGaming space offers its own line of fruit-themed slots, where each game is a little different, for example, thanks to the addition of fire or diamonds.
Other themes that have been popular among slot fans for many years, such as mythology, have also become the basis for creative experiments. Game developers practically compete with each other to find out whose idea on the theme of Vikings or Egyptian gods will be more interesting. But not every player wants to see a row of cherries or Egyptian hieroglyphs.
There is always something innovative that can be introduced into the portfolio, and if you do not hurry, competitors will do it. Slots are a reliable option, but more and more developers are coming up with new forms of gambling: shooters, new forms of lotteries, hybrids of slots and wheels of fortune, games with live dealers, branded collaborations with well-known table games – this list is growing every day.
Many new types of gambling are based on the introduction of cryptocurrencies.
Betting on football will not go anywhere, but those operators who also offer virtual sports have an advantage. And soon those who will not offer eSports betting will not be able to be competitive. Therefore, it is never too late to plan ahead. It is worth making sure that the player gets not only the content that is in demand today, but also something that gamblers will be looking for in the future.
Casinos that fail to move with the speed of the industry are left behind, wondering where all their players have gone.
- Maintain your license
Losing a license can put a business at risk.
If the regulator of the jurisdiction of operation has revoked the license of a casino, it can get into a very difficult situation. Operating without a license can have serious consequences – losing a license often means losing access to the target audience.
To avoid losing a license, online casinos should comply with local regulations, including advertising restrictions. Particular attention should be paid to the requirements of KYC and AML policies. The process of identity verification should be as strict as possible, but with fast registration.
Regulatory authorities often pay attention to how well casinos are able to handle customer complaints and whether they are able to meet technical standards.
It is in the interest of an online casino owner to be proactive and always meet the expectations of the regulator. The company should be prompt and stay aware of all changes in the jurisdiction of its work.
- Provide a foundation underfoot
Complying with regulation is important. But it can be difficult in markets with unstable economic and political situations. There have been cases where governments have suddenly conducted inspections among bookmakers and charged exorbitant amounts in taxes.
This is why it is worth making sure that an operator has its feet firmly on the ground in a reliable jurisdiction before venturing into more volatile markets.
The operator should study the market before deciding to enter it. If there have been cases where the jurisdiction has suddenly changed regulatory requirements without warning, they are likely not very stable.
- Don’t let bonuses ruin you
Casinos offer bonuses to keep players signing up and staying on the platform longer. Bonuses are attractive because users can try out the casino or sportsbook content and the quality of the platform in general without risking large amounts of their own money.
A bonus is not a free hand, but an opportunity to try the casino.
At the same time, violators of bonus policies are always active – bonus hunters browse forums for players in search of casinos whose bonus policies have weaknesses.
It happened that casinos lost millions when players found out about loopholes in their bonus policies and ran to forums to share this information with the whole community.
To prevent players from exploiting bonuses, casino operators should have strict terms and conditions. To be more specific: bonuses should be accompanied by rollover requirements, meaning that players have to scroll the bonus amount a certain number of times before they can withdraw their funds. It is also a normal practice that a player can withdraw winnings but not the amount given as a bonus.
- Implement competent marketing
Operators have to control their expenses. When it comes to marketing, people often say that half of their budget was lost. Just no one knows which half. Prevent the loss of funds with performance marketing strategies, such as working with affiliates.
Performance marketing helps to make sure that the operator pays only for successful conversions. Affiliates that drive traffic to the website receive money only after players register. Subsequently, the casino will be able to understand whether the partners it works with are worth the money.
At the same time, it is necessary to be discerning in who you cooperate with. New operators register in as many affiliate programs as possible and are forced to pay unacceptable parts of their income.
Bonus tip: integrate great games
Players come for emotions. If an online casino lets them down, they will leave it. If you reward them, they will always come back.
It is necessary to make sure that players constantly find what they need. To do this, operators should integrate a variety of high-quality content from the industry’s leading suppliers.