Gambling is one of the oldest types of entertainment in the history of mankind. With the technical progress, the industry has turned into an integral part of the virtual economic market, which is accessible to everyone. Today, operators have 2 main questions: how to increase iGaming earnings and do casinos pay income tax?
Casino Market experts have gathered comprehensive information on both topics. We will tell you how the system of taxation of gambling start-ups works in different countries and what actions an investor should take in order to quickly cover costs.
How to increase digital casino profits? To get detailed advice on how to manage gambling projects and order effective solutions for an online business, please leave an application to our managers.
Casino Income Tax: the Situation in Different Countries of the World
To date, there is no unified taxation system for the virtual gambling sector. Deductions to the treasury are calculated in accordance with the existing norms that are valid in the territory of specific jurisdictions. Moreover, in many countries, online platforms are still strictly prohibited.
| Casino income tax in different parts of the world | |
| Country | Tax rate |
| Russian Federation | 2,5–3 million rubles per year, depending on the type of the business area (betting shops, sweepstakes, and several versions of online lotteries are considered legal) |
| The Republic of Belarus | From 1,500 to 7,140 Belarusian rubles for one unit of gambling equipment |
| 10% — a fixed annual rate for betting websites, online casinos, and lotteries (we recall that the gambling business was officially legalised in this country at the end of 2019) | |
| A flat rate of 15% of the gross proceeds of virtual projects | |
| The USA | The size of the tax rate depends on the state and can range from 30 to 55% of the annual revenue of the entertainment sector |
| Gambling remains illegal in this country. The only exceptions are sports betting and betting on horse racing. Such projects are subject to a corporate tax of 29% | |
| Only local licensed operators can provide gambling services. Casino profit is subject to a flat rate of 15% | |
| Commission deductions are fixed and their size can reach 30% per year. Besides, there is a fee for winnings — 12% | |
Profit of a Platform: How to Make Sure That Your Business is Profitable
To calculate the success and prospects of a gaming site, several specialised indicators are used:
Monetary Values
The following metrics allow entrepreneurs to rationally assess the level of income in their casinos:
- Gross income (a total turnover of the website before deduction of commissions and other financial costs).
- Net income of a virtual platform (this is the size of revenue after operators pay all taxes and commissions).
- Net revenue in relation to deposits (it reflects the casino profitability against the background of the total number of bets that were placed).
- The burnt bet in relation to the size of the deposit (this parameter allows business owners to check the total income). An important nuance is that the growth of this value shows that there are too many bonus payments.
Customer Indicators
They can be divided into 3 main groups:
- Conversion. It helps to check the effectiveness of the promotional campaign, the rational distribution of bonuses, and the analytical study of website traffic.
- Lifetime value. It shows how much profit was brought by each specific player throughout the entire time of his activity on the portal.
- Outflow rate. It shows the ratio of loyal customers to the number of potential users that have not taken active actions. When the indicator is getting lower, it can increase casino profits.
Hybrid Indicators
“Mixed” metrics that evaluate the income are represented by the following categories:
- Cost of the user acquisition. The best option is when the website completely covers the cost of attracting an audience paying from the burnt deposits of new players.
- Average online casino profit per gambler. It is calculated in accordance with the following scheme: the total income of the institution, divided by the number of active punters.
Only high-quality software will help calculate the profitability of casino slots. From our company, business owners can order a set of services and systems with the following options and benefits:
- the maximum level of automation (complete exclusion of the human factor);
- round-the-clock collection and processing of data;
- analysis and reporting on all formats of monetary transactions;
- prompt interaction with the partner network.
How to Earn More in a Casino: Useful Tips from Our Experts
We offer you a list of effective ways to make your project even more profitable:
Availability and Reliability
Maximum traffic is the only correct answer to the question of how to increase the casino’s profitability. The amount of revenue and the success of the project directly depend on the number of users.
A promising platform must provide:
- the ability to play round-the-clock;
- technical and customer support without days off and lunch breaks;
- prompt troubleshooting;
- convenient navigation;
- access to reliable financial services (in order to increase the income, operators must offer the audience at least 3 ways to transfer their money: bank settlements, virtual wallets, international virtual services);
- assurance of personal data confidentiality;
- open information about the licence number of the website and the quality certificates of the programs used.
Mobile Gaming
To a modern gambler, it is most important not so much to win large sums of money but to get a positive user experience and launch a favourite slot machine at any time.
By the end of 2018, about 70% of active users preferred to visit game sites from mobile gadgets. Today, the mobile market is constantly expanding and transforming. The next stage of evolution is video slots and live broadcasts in smartwatches.
Loyalty Programs
When wondering how to earn more money in a casino, it is impossible to ignore the bonus policy.
Among the commonly used solutions for retaining customers, we can name:
- free spins and extra playing time;
- welcome bonuses and rewards for making the very first deposit;
- thematic and seasonal special offers dedicated to certain events;
- personal rewards (a game status, congratulations on significant dates, individual bonuses);
- tournaments;
- cashback.
The Main Things about the Income of Gambling Establishments
In such an issue as the search for ways to increase revenues, operators will definitely need the help of skilled specialists. Solo attempts to create a marketing program and calculate the possible risks of the enterprise can result in large financial costs and loss of time.
So, how to increase the profitability of online casinos? Just turn to our experts and they will offer comprehensive solutions for start-ups of any format.
We can join the work at any stage (from drawing up a step-by-step business plan for beginning entrepreneurs to helping existing gaming sites to enter the international market).
Become part of the successful Casino Market team already today!
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