How Does the Online Casinos Business Model Work?

    How Online Casino Business Model Work

    Trusted online casino sites have been around on the online gambling market for quite a while. If anything, the number of these online casino sites is growing at an ever faster pace. Since there are so many online casinos and gambling websites, it’s only natural to ask whether the iGaming market is close to being oversaturated with them. But as it appears, this is far from the case.

    So, how do so many gambling websites and real money online casinos manage to remain profitable under such a fierce level of competition? The best online gambling sites use a tried and tested business model that help them stand out. Of course, not all gambling operators are successful – but many of them are. Below you’ll get to read about the business model that the most trusted online casinos use in order to be successful.

    Gambling Games in Trusted Online Casino Websites

    At the core of the gambling experience at any online casino site are the casino games. They are the reasons why players come in droves. These games are, of course, played with real money. There are all sorts of gambling games at just about any casino site:

    • Online slots,
    • Roulette,
    • Blackjack,
    • Baccarat,
    • Live casino games.

    While the core rules of the games within the groups above are almost identical – these rules are still refined and reworked every so often by iGaming developers. Some of the biggest developers in iGaming, such as Microgaming, NetEnt and Play’n Go, are up and about creating the best games. This means that there’s great game variety in all categories of games. This, in turn, attracts players to come and visit, and deposit money to play online slots and other games with.

    The House Edge

    Another important part of the casino online business model is the house edge. Gambling games have existed for thousands of years now. Gamblers have always tried to predict the outcome of chance. So, to be profitable in the long run, the operators of modern online gambling sites feature games where the house retains an edge over the player, however small it may be.

    For example, in online slots, an important statistic is the RTP. Return to Player is actually the percentage of money that the slot pays out to the players as a proportion of the total bets it receives. You’ll frequently see a RTP value of, say, 96% for various slots. This means that the house’s edge over the player is 4%. Of course, this is a long-term statistic. In the short run, things are much more volatile. But in the long term, the casino always maintains its profits due to the house edge.

    Casino Bonuses

    Then there’s the task or problem of attracting new players. One of the most potent ways in which casino operators do this is by offering generous welcome bonuses to players. Some of the most popular forms of casino offers are:

    • Welcome bonus. This is usually a deposit match up to a certain sum – say, 100% deposit match up to $300.
    • Free spins bonus. This bonus is applied to slot games, as you can get hundreds of free spins to play Canadian casino slots with.
    • Loyalty bonus. As you play online casino gambling games with real money, you may get to collect loyalty points and win prizes for it.
    • Reload bonus. Online casinos in Canada are also known to offer reload bonuses for successive deposits.

    You can learn all about the Canadian online casino welcome bonuses and other promotions by checking the promotions get at online Canadian casinos. The point is, the majority of online Canadian casinos are known to give a casino bonus to attract players. Note that the welcome bonus is usually tied, as per the terms and conditions, to the player having to make a real money deposit first.

    Affiliate Marketing

    The operators of Canadian online casinos are known to work with affiliate marketing sites. These are websites, such as, that post reviews of trusted casinos in Canada, as well as fun and fair casino games. Players can choose to follow the affiliate links at the site and visit the casino where they can deposit real money. The affiliate site then gets a commission from the player’s deposits. This means that the casino gets more traffic without investing any money.

    Casino Licenses

    Acquiring a casino license is of the utmost importance for Canadian casinos. Having a valid license means that the casino is tested by independent testing agencies – and proven to be fair and safe to use. Some of the most renowned iGaming regulators are:

    Most players are well aware by now that they should only visit Canadian casino websites if the casinos are licensed.

    Acquiring a License

    Of course, it’s not an easy thing to do to acquire a casino license. The operators of Canadian online casinos need to pay anywhere from $25,000 up to $100,000 or even more, to sustain and renew their licenses. This comes in addition to adhering to the laws and regulations of the country where they operate – which can be quite strict in several countries around the world.

    Setting the Infrastructure

    If a Canadian online casino is to be successful, then the operator needs to set the gambling infrastructure up properly. This includes a setup of the following:

    • Quick and easy access to the online casino games. The gaming library needs to be readily available to players.
    • Quick and easy registration process. The registration process should be easy and simple.
    • Access to a big variety of online casino payment methods. The banking methods should be safe and fast.
    • Mobile casino gaming support. Online casino gambling should be available on mobile devices, too. This is why mobile casinos are so popular.
    • Quality customer service. The players in any Canadian online casino need to be able to contact customer service by live chat, phone and email. The support team needs to be fast and helpful.

    Online casinos in Canada need to set all the infrastructural elements of the site above in order to be successful. One example of a structurally great casino with a big game variety and fair gaming is Jackpot City Casino.

    Responsible Gaming

    At the end of our review of the business model that online casinos in Canada use, we’ll say a few words about responsible gaming. Land based casinos and online casinos alike need to promote responsible and safe gaming. They need to give many resources to players that struggle with responsible gaming. Also, they need to promote responsible and fair gaming on their regular and mobile casinos gambling platforms alike. One example of a casino that promotes responsible gaming is Jackpot City Casino.

    Also, there have to be responsible gaming mechanisms, such as deposit and wager limits, playtime limits, etc. If the player can control their passion for gaming, then they need to be able to contact customer service and ask for restrictions to be manually implemented for their account. Responsible gaming is a very important notion when it comes to gambling online in general, and the best casino operators are well aware of this.

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