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Online casinos have reportedly been overshadowed by their sports betting counterparts in recent years. This does not only apply to popularity but also profitability. Many experts believe that the culprit is diversity. How does this affect both industries? This column will shed more light on these factors.
Online casinos require constant additions to compete with sports betting sites
Sports betting is dynamic and changes as the seasons change. Punters can always find something new to bet on around the year. This is slightly different for online casinos because the games are not dynamic. Even if the industry hopes to compete by creating new games per month, the output may not meet the demand.
So far, there are around 40 games added each month. Even at this rate, the quality of the games is suffering. Some operators like Happy Casino opted to focus more on quality as opposed to quantity.
However, many casinos choose quantity over quality, hoping that the quality games will make up for the rest. This option is risky because it can low-quality games can overshadow the good ones. In the end, they are not profitable enough to keep the online casino in business.
Other factors are responsible for the disparity
Aside from the dynamic nature of sportsbooks, online casinos are also plagued with other issues that affect their profitability. Some include inadequate marketing, inability to connect with players, and miscellaneous problems may also be responsible for the poor profits.
In recent times, however, several online casinos have included sportsbooks and betting services to increase profitability. While this has worked for some, not all operators can afford to run these services. Hence, only established businesses survive for the long term.
How casinos have been turning a profit
Online casinos still manage to turn a profit regardless of the challenges in the sector. Live dealer games are cash cows in most modern online casinos. Several online casinos report that they make more profit from live dealer games than others, such as slots.
In live dealer games, the online casino has more advantage, and the profits are higher for the casino. The roulette is an excellent example of how it works. So far, the highest payout for one number is 36 – 1. However, the odds are 37 – 1 in reality since there is “0” on the roulette wheel.
The same applies to the American roulette, which has “00” with odds of 38 – 1. Also, the disparity in these cases benefits the online casino. The return to player is also quite low for games like live dealer roulette, giving the casino more advantage.
How online casinos can attract and retain more customers
While sports betting may have the upper hand, online casinos may still find ways to retain their customers and attract new ones. Several casinos reportedly used this strategy to grow their brand within a short period. One of the most common strategies is bonuses.
Casinos have used bonuses for ages to attract users. However, it is not enough to offer one single bonus offer; casinos that want to turn a profit must do better than the competition. This is why several casinos continue beyond welcome or sign up bonuses. They take it up a notch and include deposit bonuses, free spins, loyalty bonuses, and reload bonuses.
However, bonuses can be problematic when online casinos fail to craft their terms properly. An operator may be at risk of losing a lot of money if it does not include an airtight requirement. Some casinos resorted to including playthrough requirements and even expiry dates for bonuses. In addition, some even specify which games can work with bonuses to control the process.
Can online casinos become more profitable than sports betting sites?
It is unlikely that online casinos can surpass sports betting because there are more sports fans and tournaments to bet on. FIFA reports that there are over 5 billion football fans across the globe. This does not take other sports into account. So, it simply implies that sports betting will continue to see more patronage.
Also, some countries have more organized sports betting laws with little to no regulation on online casinos. This has inadvertently pushed sports betting to the forefront in several cases. However, online casino gambling is still doing well compared to several businesses. It has outstanding growth globally and continues to grow each year. Despite the pandemic, online casino gambling was unfazed by the economic downturn. This is proof that the sector is stronger than ever.