- September 25, 2023
- Posted by: CBGabriel
- Category: Business
Recent research unequivocally demonstrates the commanding presence of online casinos within the global gambling arena. The unprecedented surge in online activity during the global pandemic served as a catalyst for the flourishing online casino gaming industry, thrusting it into the forefront of the gambling landscape.
As traditional brick-and-mortar establishments faced temporary closure, players relished the excitement of wagering from the comfort of their homes. One thing became abundantly clear – the online casino sector had not just gained prominence; it had firmly established itself and was here to stay.
Recognizing this trend, many land-based casinos wisely chose not to ignore it. Rather than competing head-on with the online gaming realm, they embraced the opportunity to enter this immensely profitable market, seeking to harmonize both traditional and virtual directions into a unified, thriving business model.
Indeed, having an established land-based casino brings invaluable expertise in the realm of gambling, along with crucial assets like a pre-existing player database, diverse marketing avenues, sometimes even a readily available legal infrastructure, and, not least of all, the respected reputation of an established market player. In comparison to a fledgling online casino startup lacking prior industry experience, a land-based contender venturing into the online realm stands a strong chance of capturing a substantial market share.
Nevertheless, the path to success in the online domain is not as straightforward as it may seem. Experience in the brick-and-mortar business, while advantageous, does not guarantee triumph in the online sphere. These two markets diverge in several key aspects, and there exist numerous factors that operators must carefully consider when strategizing their foray into the online arena.
Here are several key considerations that a land-based casino operator must prioritize:
1.) ENSURE LEGAL COMPLIANCE OF THE ONLINE CASINO
Before venturing into the world of online casinos, it is imperative for a land-based casino operator to confirm the compatibility of their existing license for on-site gambling activities with online operations. It’s essential to recognize that not all countries and gambling jurisdictions provide the same licenses for both physical and virtual gambling. Therefore, seeking professional legal counsel is highly recommended to ensure thorough preparation.
2.) EMBRACE NEW CASINO FINANCIAL TERMINOLOGY
The financial dynamics of an online casino diverge significantly from those of a brick-and-mortar establishment. In a land-based casino, the concept of “Net Profit” prevails, calculated as the total cash intake minus the total cash disbursed.
This straightforward formula signifies that the casino’s profit equals the initial player investments in chips minus the accumulated player winnings paid out from the cashier by day’s end.
Conversely, in the realm of online casinos, financial operations follow a more intricate path. A player may possess a specific sum in their account, but this amount does not immediately belong to the casino. It may remain in the player’s account for an extended period before being utilized for bets, lost, or withdrawn as winnings.
Two primary indicators govern an online casino’s profitability:
- GGR (Gross Gaming Revenue): Calculated as the total bets placed minus the total winnings paid out to players.
- NGR (Net Gaming Revenue): Derived from the total bets placed minus the total winnings paid out to players, further subtracting promotional expenses and addressing chargebacks, in addition to accounting for payment processing fees.
Payment processing fees encompass charges levied by payment providers and banks for handling electronic payment transactions between the casino and players. These fees are contingent on various factors, including the transaction type (deposit or withdrawal), payment method (credit/debit cards, prepaid cards, e-wallets), currency, and transaction amount, among other variables. Understanding these financial intricacies is paramount for success in the online casino arena.
Chargebacks represent claims made by players who dispute having deposited funds into an online casino, seeking a refund of their money.
Promotions serve as a fundamental strategy employed by virtually every online casino to entice players. Typically, this includes a no-deposit welcome bonus and a series of deposit bonuses that players must wager to unlock the casino’s provided funds. A comprehensive comprehension of the bonus policy is essential for accurate calculations of casino expenditures and profits.
Additionally, several other factors significantly impact the financial landscape of online casinos, such as affiliate programs and fees paid to third-party software and game providers. Notably, these elements do not feature in the operations of land-based casinos, rendering their financial structures and data analysis comparatively more straightforward.
3.) PRIORITIZE EFFECTIVE MARKETING STRATEGIES
In the world of business, marketing is an indispensable component, regardless of whether the enterprise is a newcomer or a well-established entity. Simply having a respected brand in the land-based casino realm does not automatically translate to online success. The vast networks of land-based casinos do not guarantee triumph in the digital arena.
It’s worth noting that only a fraction, ranging from 20% to 50%, of players from land-based casinos make the transition to online gaming. This underscores the critical importance of implementing a sound marketing strategy and allocating a substantial marketing budget. Without these key elements in place, a land-based operator may find it challenging to attract a substantial number of players eager to explore the online offerings.
The encouraging news is that a land-based casino possesses a wealth of resources for executing effective marketing campaigns. Among the strategies that have proven highly successful are:
- Promoting the online brand within the confines of the land-based casino, through methods such as distributing promotional flyers and displaying eye-catching visual advertisements.
- Establishing a learning center within the land-based casino, staffed by knowledgeable employees who can guide visitors on how to navigate the website and elucidate its myriad possibilities.
- Providing players at the land-based casino with internet-connected tablets, facilitating easy access to the online casino along with enticing bonuses to encourage exploration.
While leveraging the extensive avenues of land-based marketing, it’s crucial for the operator not to overlook the most potent online promotion tools. These encompass search engine optimization (SEO), securing placements and reviews in relevant online media outlets, networking initiatives, affiliate programs, and a host of other online marketing strategies.
4.) PROVIDE A PLETHORA OF GAMES TO SUIT EVERY PALATE
It’s imperative to bear in mind that an online casino’s objective is to cater to a broad spectrum of players – encompassing both their existing loyal patrons from the physical realm and a fresh influx of online enthusiasts. These two player segments harbor distinct preferences: frequenters of brick-and-mortar casinos tend to favor traditional offerings like classic slot machines, while their online counterparts seek more visually engaging experiences.
With this understanding, operators should curate a diverse portfolio of casino game providers. Discerning players invariably gravitate toward captivating visuals and cutting-edge animations found in cinematic 3D slots.
5.) PRIORITIZE UNRIVALED CUSTOMER SUPPORT ONLINE
Within any land-based casino, administrators, cashiers, croupiers, and a cadre of attentive staff are readily available to address inquiries and provide expert assistance to players. However, the online casino landscape presents a different scenario, where players are largely self-reliant.
To excel in the realm of online gaming, it’s paramount to establish robust and responsive customer support systems that ensure players are never left to navigate their gaming journeys alone.
While seasoned gamblers may find solace in the cloak of anonymity, novice players can often find themselves bewildered by the labyrinth of electronic transactions, registration formalities, and bonus intricacies. Astute operators, however, employ a range of strategies to provide users with a seamless journey through the world of online gaming:
- Craft informative pages such as FAQ, Help, How to Play, and Terms and Conditions, replete with step-by-step instructions and user-friendly explanations. Cover topics like deposit and withdrawal procedures, available payment options, data privacy safeguards, and more.
- Ensure that your casino’s design is intuitive, with easily accessible buttons for functions like Deposits and Casino Games.
- Establish top-tier customer support services: invest in round-the-clock live chat and a call center staffed by knowledgeable professionals primed to address player inquiries. The broader the range of supported languages, the more inclusive and accommodating your service becomes.
6.) STREAMLINE PAYMENTS THROUGH THE CASHIER FOR ONLINE USERS
In the realm of land-based casinos, players promptly head to the cashier to procure their chips. Conversely, the online casino experience revolves around digital deposits and withdrawals.
The availability of the right payment methods and payment service providers (PSPs) is paramount for the success of an online casino. Diversifying the range of payment options is essential, as it caters to the diverse habits and geographical locations of players.
Modern omni-channel technology has paved the way for seamless player account management, bridging the offline and online worlds. This extends to the creation of a unified user profile that spans both land-based and online casino experiences.
7.) UNLEASH THE FULL POTENTIAL OF ONLINE GAMING
The internet’s canvas for games of chance extends far beyond the confines of online casinos. Among the most popular iGaming pursuits is online sports betting, and the synergy between sportsbooks and online casinos is undeniable.
By integrating sports betting into the online casino environment, players can enjoy the best of both worlds with a shared account and balance. Whether switching from slots to sports or vice versa, they can seamlessly transition between their favorite activities.
For land-based casinos yet to explore the world of bookmaking, adding a sportsbook to their online casino presents a golden opportunity to expand their player base. Numerous strategies can be employed, such as providing land-based casino visitors with tablets for placing bets or even installing dedicated betting terminals.
In conclusion, land-based casinos should undoubtedly explore the boundless opportunities of the online gaming sphere. However, they should approach this venture with a balanced perspective and avoid complacency. Despite their similarities, online and offline gambling are distinct domains, each brimming with its unique opportunities, idiosyncrasies, and challenges.
Meticulous research and strategic planning are the cornerstones of uniting these two worlds effectively. Employing in-house experts for technical aspects and promotional endeavors will be invaluable, establishing an efficient operational framework.
Supplementing internal resources with external expertise from companies and agencies that have orchestrated successful launches ensures a substantial return on investment and transforms a land-based brand into a beloved online sensation.