Online casinos and gambling are lucrative businesses that have taken the internet by storm. The UK Gambling Commission (UKGC) is the body responsible for licencing and regulating all forms of gambling in the UK. The legality of casinos has contributed to their popularity and the flourishing of gambling in the UK.
Like any other business, online casino operators want to make a profit in the long run. Most casino games have a house edge over the player. Both land-based and online casinos have expenses and costs that need to be covered. Besides the house edge, online casinos use free spins as a means of getting revenue for their business.
In this article, we’ll explain how online casinos make profits from free spins and other popular alternatives.
What Are Free Spins?
Before getting into online casino revenues, it is important to know what “free spins” are and how they work. To combat the stiffened competition in the gambling market, online casinos use lucrative bonuses and promotions. Free spins are the most popular bonus rewards you can claim at top online casinos.
Many casinos offer free spins for new customers to test different games and familiarise themselves with the sites. It is essential to learn how to get free spins at different online casinos before getting started. But what many people don’t understand is that casino operators benefit more from these benefits in the long run than players.
Online Casino Revenue System: How Does It Work?
As mentioned earlier, online casinos must make a profit to cater to their daily expenses of managing the business. This is why the games they offer are designed to generate revenue in the long run. However, the online casino profit is only realised after a player makes a losing bet. The amount lost by the player is what online casinos refer to as a “net win.” A net win is the difference between the amount you spend on lost bets and the amount the casino pays on winning bets.
As you can tell, the online casino’s net win is always guaranteed, whether the player wins or loses. In standard games like online slots and single-player table and card games, the theoretical Return-to-Player (RTP) percentage determines the outcome of games. The game’s RTP can be set by the developer or the casino operator. The safest and best online slots have an RTP of between 90% and 96%. This percentage indicates what the casino will pay the player after several spins.
So, if a slot machine has an RTP of 94%, the casino’s profit or house edge is 6%. That implies that if you place a bet of €1, you expect to earn €0.94. On the other hand, the casino earns €0.06 for every €1 bet you place.
How Online Casinos Use Freespins to Generate Revenue
The house edge advantage is not enough to cater to the expenses of running an online casino. That’s why casino operators employ free spin offers to enable them to maximise the revenue they collect.
The first objective of online casinos is to acquire as many customers as possible. Without players, there can be no revenue to be collected. Many online casinos offer free spins to entice new players to join. These spins can be used to play selected online slot machines, and they enable players to win real money.
In addition, these offers allow players to learn about how a casino site works without risking their hard-earned money. They are also an excellent way to retain customers who like testing new online slot games. The good thing about free spins is that they only require you to sign up, and they are credited to your account.
What many people forget is that freespins are not actually free. Many operators entice new players with big rewards, but they often have wagering requirements to meet before they can be withdrawn.
A wagering requirement is a multiplier indicating the number of times you must play with real money before a withdrawal request is completed. Free spins are known to have higher playthrough requirements than other online casino bonuses. You may find that casinos free spin bonuses are subject to a 30x wagering requirement or higher.
Another secret that online casinos use is to prolong gaming sessions. They achieve this using innovative bonus features. These features are set to be triggered during the game to boost payouts. In fact, some online slots reward players with hundreds of free spins to maximize their winning opportunities.
However, the latest changes in UK gambling regulations are forcing developers to come up with in-game tools to curb online casino operators’ tricks to keep players engaged for a long time.
By now, you understand why online business is booming in the UK and globally. Even though it is a relatively new business venture, its annual revenue collection is larger than most established investments. The only way operators can manage to raise this quick profit is by minting money from players.
The best way to avoid exploitation at online casinos is to play at licenced and regulated sites. These types of casinos usually work with third-party agencies, regularly checking the Random Number Generator (RNG) software for fairness. Also, each casino game undergoes a rigorous vetting process before it’s listed on the market.