How Do Online Casinos Make Their Money?

Online Casinos Are Making Money

When you think about the online gambling industry and Bitcoin casinos, we have heard people winning huge bets and on the contrary, we have heard stories of losses as well.

There are online games like Texas Hold’em Poker, roulette, card games, table games and slot machines where they offer exciting rewards and bonuses.

The questions that strike our minds are how do they manage to put such big rewards? Do casinos make money only when their player loses? What if there are only wins and no losses?

Let’s check out what takes casinos to bring in that profit.

Prize draws and jackpots

Usually online casinos run large prize draws and jackpots. Players get hooked up to these enticing offers and put the amount of money in the hope of winning large amounts, progressive jackpots and so on. The more people buy the ticket, the larger the size of the prize will be.

Free play for new games offers

Many casinos entice their inactive members by sending them promotional emails. These emails offer them to play new games for free. For a time period, they will play it for free but soon they will start spending money.

Gambling Addiction

The addiction to gambling is more than what we could have thought. The thrill makes them put more money on the games. The higher the betting the higher the thrill of winning a prize. The casinos also send them emails mentioning the people who have won huge prizes and the gamblers can’t resist it.

Free Cash

While registering for the first time, many online gambling networks give you free cash. But before you get the free cash the casinos ask you to open an account and deposit some cash. When the player starts playing and uses up the entire free cash. This deposited cash can be used if the player loses all his money.

House Edge

They set their casino statistically such that when the finances are smoothened they will have a small profit in place. Every time a player plays a game and loses, a small percentage of their amount around 5% is a winning prize for the casino.

Commissions 

There are games like poker for which the casino collects a small percentage of the initial bets before starting the game. Few casinos have a fixed fee and others have a flat rate round the poker game.

Online casino game structure

Some games allow the casino to be the player. In blackjack games, the player has an advantage as the player places the cards before the dealer. Set rules are such that, if the player loses, the dealer wins without even placing the cards.

The Handle 

The handle and the drop are often confused. The drop is any money that has been traded for chips. Like in the blackjack game, the metal drop box at the edge of the table is the drop. Players drop the bills and credit slips into this box.

It is true that the algorithm of the online casino games work in such a manner that it becomes almost impossible to tamper the games data. Casinos can earn you a living that’s even hard to believe, excluding all the online casino running costs.

ABOUT THE AUTHOR

Richard Wallis

Richard Wallis has began writing for finance industry since 2010. He holds post graduate degree in English language and literature. From the beginning of his career he was interested in world of finance. So, eventually he began writing news stories on it. In addition to that he is an avid trader.

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