In recent years, with the rapid development of Internet technology, the popularity of iGaming has soared, and its market size has also expanded year by year. The emergence of white label iGaming networks has completely changed the landscape of the iGaming industry, bringing unprecedented opportunities to the industry.

For a long time, many people generally believe that only large platforms can make money in the fierce competition in the iGaming industry. They believe that only platforms with large investments and large scales can succeed in the market. However, with the development of white label iGaming technology, the gambling market is constantly segmenting, and iGaming operators no longer need to spend a lot of time and money to develop their own iGaming platforms, which greatly reduces their operating pressure and solves the problems of a long time and large capital investment in the development process. If they can seize the opportunities in the market, small iGaming platforms also have room for development and profitability in a fiercely competitive environment. Today, TC-Gaming will discuss with you the possibility of small platforms making money in the gambling industry and analyze the key factors that affect their profitability.

What is iGaming like today?

From the 1990s to now, the iGaming industry has undergone tremendous changes. The technological advancement of the Internet has promoted the development of the iGaming industry. From the early days of only operating on the computer to now being able to use it on mobile devices at any time, this enhances the user experience. At the same time, all parts of the world have introduced corresponding regulations or revised the original regulations for traditional physical casinos to iGaming, redefining the gambling industry.

How does iGaming make money?

The habits of current gambling players have changed. From the early offline casino big customers to the current mobile gambling, the penetration rate of the gambling market has continued to increase, and the iGaming industry can be said to be rising step by step. iGaming has also gone from the initial large investment to the current, with the support of the white label iGaming network, ordinary investors or entrepreneurs have joined this iGaming environment. With the increase in the number of industries, the inevitable industry competition is also intensifying. For start-up entrepreneurs, they may not have a deep understanding of this industry. After all, an industry cannot be really understood by a few months of data research and market analysis. But the most concerning issue for iGaming investors or entrepreneurs is how iGaming makes money.

As an iGaming operator, you must strike a balance between profitability and player satisfaction. The following are points that an iGaming operator should focus on;

• Player retention: Successful iGaming requires an effective player retention strategy. The cost of developing a new player is generally higher than that of developing an old player. Most of them use player recall, VIP programs, etc. to provide bonuses or recharge discounts, free transfers, etc. to bring revenue value to the gambling platform from a long-term perspective.(Many big customers started as small customers)
• High rollers:Wealthy players are usually one of the main sources of income for iGaming. Basically, many small gambling platforms do not make much money on weekdays, but they can support the entire team with some individual big players. Of course, the service treatment of these high rollers is also different - you can call it - VIP special treatment among VIPs.
• Selection of gambling games:iGaming platforms need to select and filter game types. Although games with high house advantages can bring profits to the platform, they also need to take into account the diverse preferences of different players. It is important to cultivate players.(For example, if you recommend real-life games to people who often play electronic games, they may not be very interested. If they often play mythology or ancient costumes, the effect of recommending cartoon games to them will be discounted)
• Geographic location: As an online business, iGaming platforms can completely cross national borders and target areas with strict regulations on public gambling or areas with higher disposable income. Customers in these areas have a high chance of becoming high rollers, thereby maximizing profits.
• Marketing and advertising: A good marketing strategy can greatly improve your advertising conversion rate. For iGaming, an effective advertising channel must be understood and practiced, so that you can have a clear idea. Attracting new customers and retaining them will always revolve around the iGaming platform.
• Payment method: Payment method is also the top priority of iGaming platforms. The speed of deposit and withdrawal, the channels of deposit and withdrawal, and the security of deposit and withdrawal are all areas that should be considered. At the same time, for the current Internet, payment of cryptocurrency is a must. (For example: Why is the Chinese market difficult now? It is not the market that is difficult, but the deposit and withdrawal channels are strictly blocked. The market is still so big, and there have always been people interested in gambling, but the advertising channels are narrowed, and deposits and withdrawals are blocked. However, for the Chinese gambling market, the profitable platforms are also making money. In the middle, there are some solutions for deposit and withdrawal and advertising.) So the payment method has been solved. It is to allow users to play games without barriers and obstacles. The source of money will naturally roll in.
• Support mobile terminals: Although all iGaming platforms now support mobile terminals, think carefully, is your platform really compatible with mobile terminals? Is it really designed to meet the needs of mobile terminals or is it just for the sake of having mobile terminals?(For example: the size of mobile terminals is so large, is your gambling platform designed for mobile terminals separately? You may think that mobile terminals are mobile phones, so what about iPads? There are different PADs from various manufacturers, and these mobile terminals are of different sizes. Have your designs, operation methods, opening speeds, etc. been optimized for mobile terminals? Is the recharge process too complicated? Has it been optimized by product designers?) Now mainstream players are using mobile terminals, so mobile terminal optimization is a top priority.
• VIP membership program: This is easier to understand. Through the VIP membership program, you can customize some strategies to retain regular customers and encourage players to continue playing games on your platform and generate more consumption.
• Legal framework: iGaming regulations can vary greatly from country to country. These rules can have an impact on the operation and profitability of iGaming platforms. The fees incurred by legality and compliance will affect the financial results of your iGaming platform. This in turn affects the average profit per player.

What factors influence iGaming revenue?

It is not so easy to achieve profitability in such a competitive field in the iGaming industry. From the reliability of platform technology to the optimization of user experience, to marketing strategy and legal compliance, every detail may have a huge impact on the final revenue. Therefore, we need to understand these factors and make targeted adjustments and optimizations.

• Market trends: When you start entering a certain region’s gambling market, you need to adapt to current market trends, such as what types of gambling games players are interested in at the moment, or in this season or month, so that you can attract and retain more players (for example, Brazilian gambling and Spanish gambling will focus on sports, but at a certain time, regional leagues will emerge, and you will need to adjust your gambling platform strategy according to the season).
• Player Preferences: Providing games and betting modes that match player preferences can ensure higher player engagement. Of course, these need to be analyzed from the statistics of your betting white label iGaming system.
• Technological progress: The latest technology for game upgrades, security, and customer service can enhance user experience and increase loyalty. (For example, the hash value game in the past two years was also very popular.)
• Regulatory environment: Complying with regulations and obtaining licenses in different jurisdictions can bring stability and thus stable income. However, the fees in this regard can also be high or low.
• Game provider fees: Gambling companies have access fees based on their monthly revenue or a certain percentage of commission deductions. Therefore, these fees may vary from company to company.
• White label iGaming usage fee: If iGaming adopts a white label iGaming solution, there will also be some white label iGaming hosting and maintenance fees every month.
• Office space: The cost of office space is a big expense, but if remote control is done well at home, a lot of expenses can be saved. However, for a start-up gambling platform, remote control at home is still somewhat difficult.
• Personnel costs: Staffing costs including customer support, technical staff, and other personnel.
• Third-party payment: Needless to say, the fees here are different for each company. This is the channel for users to deposit and withdraw money, which is inevitable. Of course, the most important thing when looking for a third party is safety and reliability.
• Affiliate Program: The commission fee for an agent depends on the agent structure, such as cost per transaction (CPA) or RevShare. Assuming RevShare is 35%, the commission fee will vary depending on the number and turnover of referred customers, as well as the amount of negative profit.
• The platform offers: Attracting existing player members through offers, tournaments, and cash or physical gifts also incurs significant costs. The total cost depends on the number of users participating in the activity.
• Advertisement: In order to maintain the operation of the platform and expand the player user base, iGaming will invest a lot of money in advertising. Different channels and merchants will have different operating methods and costs.

How much money can an iGaming platform make in a month? Its income is not fixed because there are many factors that affect it. The profit of an iGaming platform will be affected by the types of games provided. The more games with high advantages on the platform, the higher the income. Similarly, the frequency of player activity (including the number of active users and the effectiveness of retention, acquisition, and other strategies) will also affect profits.

At the same time, operating costs such as taxes and license fees may vary from region to region and affect profits. In addition, daily operating costs also determine net profit. Taking into account the variables affected by these factors, the exact profit figures will fluctuate from month to month. However, in terms of game variety, marketing, player retention, and cost control, better gambling platforms usually report higher average profits.

What factors affect the average profit of each user?

If we talk about how much money an iGaming platform makes from each user, there are several factors to consider. Profits are affected by a variety of factors, such as:

1. Game selection:  Different games have different profit rates. For example, slot machines may be more likely to attract users to make multiple bets than live games, but players of live games such as blackjack or baccarat usually bet higher amounts. Providing a variety of game options can attract different types of players, thereby increasing overall profits. Therefore, the accuracy of the game recommendations made by the gambling platform to each player is more critical.
2. Average bet:  The average amount of money a user bets in each game directly affects profits. Players with high bets may bring higher single returns, but they may also face higher risks. Therefore, it is necessary to consider user segmentation. Whether players are impulsive or recreational requires in-depth research by gambling platform operators.
3. Game duration: The longer the user plays games on the platform, the more bets they make, and the greater the potential profit of the platform. Therefore, optimizing the user experience and making users willing to stay on the gambling platform for a long time is the key to increasing the average profit of each user.
4. User acquisition cost: The cost of attracting new users affects overall profits. Through effective marketing strategies and optimized advertising investment, user acquisition costs can be reduced, thereby increasing net profit per user.
5. Payment methods and fees:  Different payment methods will have different fees, which will affect the final net profit. Choosing the right payment method and minimizing the fees can increase the actual profit of each user.
6. Customer service quality:  High-quality customer service can improve user satisfaction and enhance player loyalty, thereby increasing the long-term profits of the gambling platform.

By comprehensively considering and optimizing the above factors, iGaming platforms can effectively increase the average profit of each user and achieve greater profit margins.

About player conversion and value

Player conversion rate and value are very important indicators in the iGmaing industry. Even if they are all gambling platforms, there will be great differences between different platforms. This mainly depends on the marketing strategy and game recommendations as well as the players' preferences for game selection.

The value of players is determined by their habits and loyalty to your platform. From the perspective of customer acquisition costs, the value of players who stay on your platform to play games for a long time will be highlighted. Therefore, balancing customer acquisition costs and long-term players has become the key to whether the financial stability of the gambling platform is stable.

Risks and Challenges of Operating an iGaming Platform

About industry competition

The competition in the current iGaming market is very fierce. New platforms are launched every day, and each platform is competing for customers' and users' wallet share. Therefore, gambling platforms should not only have regular game types, but also come up with new ones from time to time, and the marketing level should also keep up. Attract players and retain players. At the same time, the quality of customer service should also be followed up simultaneously.

About cost control

Operating costs are a huge expense, including network system maintenance fees, manufacturer deductions, government taxes, license fees, and marketing costs. These are all ongoing, but there will be room for fluctuation, so this is directly related to the profitability of a gambling platform.

Market instability

The gambling industry is a gray industry. Although the authorities in different regions and countries have different laws and regulations on gambling, one thing is the same, that is, the complexity of industry rules. Therefore, gambling platform operators should be aware of the dynamics of the authorities' laws and regulations to ensure the stability of the living environment. In order to avoid some uncontrolled problems.  Network security

iGaming has a large amount of money flowing into it, which is like a magnet for some hackers, attracting them. A small loophole may cause significant losses. Therefore, it is not feasible to cut corners in network security, but the cost of strengthening network security is not cheap.

Advantages of small platforms

Today's players are increasingly pursuing personalized and high-quality experiences. This is also an opportunity for small gambling platforms to stand out in the market. Small gambling platforms may not be as good as large gambling platforms in terms of resources and funds, but they have unique advantages, low operating costs, and large room for error .(For example, if the customer service staff of large platforms do not respond well, not immediately, or some customer disputes can easily trigger a chain reaction.). Even a family-style business model where a few relatives and friends work at home can be done. Compared with the high-cost consumption of large platforms that have to recruit and set up an office scale to operate, it is really easy and comfortable in comparison. But in terms of activities, small gambling platforms may not be able to afford activities that give away big money. We at TC-Gaming have taken this issue into consideration and understand that it is not easy to operate in the current gambling market. Therefore, we spare no effort to leverage our own influence to cooperate with manufacturers to host exclusive customer events and support new platforms or small-scale platforms in gaining marketing activities (such as event bonuses provided by manufacturers, etc.).Therefore, new platforms or small-scale gambling platforms can occupy a place in the iGaming market and obtain considerable profits through precise market positioning, high-quality user experience and services, and flexible marketing strategies. At the same time, as countries increasingly tighten their supervision of the gambling industry, everyone wants to operate in compliance. (I won’t say more here.)

Therefore, small platforms can be more flexible and fast in this regard, and quickly adjust their operating strategies to ensure steady development within the regulatory framework. I believe that whether it is a newly started emerging platform or a small gambling platform that has been operating for many years, as long as they can give full play to their own advantages and formulate appropriate strategies, small platforms can also achieve brilliant achievements in the gambling market.

Summary

Today, the iGaming market generates $56 billion in revenue each year, creating lucrative profits for investors. Although the top large gambling platforms dominate the market, there is still potential for new gambling platforms, especially those gambling operators with strategic planning and unique business marketing channels. Due to technological development and the expansion of Internet coverage, the iGaming market will continue to grow. However, if a new gambling platform wants to stand out in the market, the key to success lies in a good gambling experience, strict security measures, excellent marketing strategies, and high-quality customer service. At the same time, the promotion of Internet technology has greatly reduced the threshold for entering the gambling industry, providing more opportunities for start-up investors or small platforms. The current gambling market is no longer a game where the big fish eat the small fish. Platforms of any size can find a foothold in the iGaming market as long as they can seize opportunities and use the right methods.

Of course, there are many details to pay attention to and consider when operating a gambling platform. As a one-stop service provider with 16 years of experience in the gambling industry, TC-Gaming has accumulated rich experience and expertise to ensure that your gambling platform can convey information to the target gambling market in the most effective way, so as to quickly and seamlessly enter the target gambling market. Choose TC-Gaming, we will share the joy of success with you and move towards a bright future together.