Unveiling 2023 Profits: How Much Do Online Casinos Make in the Exciting Digital High Stakes?

May 12, 2023 –

how much do online casinos make

Roll up your sleeves and get ready to plunge into the electrifying world of online casinos. Ever wondered just how much these digital gambling powerhouses rake in each month? Brace yourself because the numbers are about to get real.

Riding the Revenue Roller Coaster

When we’re talking about the revenue of online casinos, we’re referring to a figure known as Gross Gaming Revenue (GGR). This is the colossal pile of cash left over after all the winners have had their shares. In 2022, US casinos, both physical and online, amassed an eye-watering $60 billion in GGR. If you break that down, it’s an average of $5 billion every month. Yes, you read that right!

But hold on, let’s not get carried away just yet. Not all casinos are created equal, and in the revenue race, land-based casinos still wear the crown. With their intricate designs and bustling atmosphere, these casino giants contributed a staggering $50 billion to the total GGR in 2022. That’s a cool 80% of the entire pot!

Online Casinos: The Underdogs with Big Bite

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Now, let’s not write off online casinos just yet. While they might not be outperforming their land-based counterparts, they’re still pulling in some pretty impressive figures. By simple math, online casinos are estimated to generate around $830 million per month. While this may seem like pocket change compared to the earnings of land-based casinos, it’s still a figure most businesses can only dream of.

January Jackpots: When Casinos Hit the Bullseye

how much do online casinos make

But here’s the twist: not all months are created equal in the casino world. Some months see the jackpot bell ringing more frequently than others. In the last two years, January 2023 took the cake as the highest-earning month for casinos, closely followed by the festive season in December 2022. March and October also proved to be lucky months, with casinos cashing in over $5 billion in revenue.

The Digital Casino’s Share of the Pie

So, you might be thinking, “Online casinos are making less than a quarter of what land-based casinos make.” And yes, you’d be correct. But remember, these digital gaming platforms don’t have the overheads that their physical counterparts do. There’s no grand building to maintain, no army of staff to pay, and certainly no free drinks to keep patrons happy.

The Cost of Running an Online Casino

how much do online casinos make

That’s not to say that online casinos are free from expenses. A significant portion of their costs is wrapped up in the software powering their games. Big names in the game development world like Playtech, Microgaming, and Net Entertainment dominate the online casino scene, and their services aren’t inexpensive.

These providers charge a hefty monthly fee, which can exceed $10,000, plus they take a cut of the casino’s winnings, anywhere between 15% to 25%. So, if an online casino pulls in $1 billion in a month, up to $250 million of that could go straight to the software providers.

Online casinos also have operational costs to consider. Behind the scenes, a team of customer support staff, live dealers, technicians, and more, all require their share of the revenue.

Welcome Bonuses: A Risky Business?

If you’ve ever joined an online casino, you’re likely familiar with welcome bonuses. These enticing offers may seem like a surefire way for casinos to lose money, but there’s a catch. Each bonus comes with a rollover requirement, meaning you need to win back a certain amount before you can withdraw your bonus

winnings. For instance, if you deposit $100 and receive an additional $100 bonus, you might have to win back $4,000 ($200 x 20) before you can cash out.

It’s a rare occasion that a player manages to meet these requirements and claim the full bonus, which means the casino usually doesn’t lose out. It’s a clever strategy and one that adds a thrilling challenge for players.

The Golden Goose: Which Games Bring in the Bucks?

how much do online casinos make

Now let’s circle back to the big question: “What games are the biggest money-makers for online casinos?” If you’ve ever visited a physical casino, you’ll know the myriad of options available. The same applies to online casinos, with a plethora of games each offering a different chance for players to win, and for the house to profit.

Unsurprisingly, slot machines and table games are the cash cows of the casino world. In 2022, they raked in a staggering $3.97 billion in revenue. Following closely behind are sports betting and iGaming, which generated $678.7 million and $465 million respectively.

While these numbers might be dwarfed by the revenue from slot machines and table games, the steady growth in these areas over the past few years signals a promising future. The digital landscape is evolving, and with it, the ways in which online casinos profit.

A Profitable Game: Do Online Casinos Really Win?

We’ve crunched the numbers and it’s clear that online casinos are certainly profitable. With an estimated monthly revenue of $830 million, they’re not just surviving in the digital world, they’re thriving.

While they may not yet compete with the monthly earnings of land-based casinos, the lower overhead costs and increased accessibility for players around the world position online casinos in a prime spot for continued growth and success.

It’s clear that the digital evolution of the casino industry is more than just a passing trend. So next time you’re spinning the reels or placing your bets online, remember the staggering numbers behind the scenes. It’s a high-stakes game, and the house is set to keep on winning.

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