Experts from the Casino Market studio talk about the features and benefits of the tool in the entertainment niche. You will learn why many entrepreneurs are using this method, and what alternatives it has.
Development of the Concept
The gambling and sports betting industry is actively introducing innovations, one of which is subscription-based projects. Such platforms provide unique opportunities, such as access to exclusive options, premium features, and individual rewards.
This interaction model was first proposed by book and magazine publishers 300 years ago. Later, it began to be used in many other sectors of the economy, including sales.
Retailers have discovered that product branding as a service allows them to increase revenue and retention rates, making their firms prosperous.
Netflix is a striking example of a modern subscription model. The company began its journey by purchasing copyright for the content, which it then offered to its audience at a reduced but constant price.
Today, this approach is used in many streaming services (Spotify, Amazon Prime, Blue Apron, and Stitch Fix), which confirms its high efficiency.
The results of the study showed that:
- over the past decade, this kind of economy has grown by 435%;
- by 2027, according to experts, this market will reach $1.5 trillion;
- an average consumer spends $133 per month on subscriptions, which is $1.6 thousand per year.
Video game manufacturers were the first to use this approach in their work. For example, Nintendo presented the proprietary Nintendo eShop service. It implements a model that allows users to gain access to online multiplayer for the vendor’s top entertainment.
Subscription Economy in Online Casinos
The working principle of iGaming sites is quite simple. Instead of traditional “pay to play” systems (deposits and bets), users spend money on a regular fee to unlock exclusive benefits.
Some of the main advantages include:
- unlimited access to premium solutions;
- reduced transaction fees;
- improved bonuses;
- access to tournaments, etc.
Players can enjoy an optimised user experience. This is achieved due to the fact that subscription-based casinos remove in-game advertising or other paid services.
Benefits of the Approach for Entrepreneurs
Let us consider the key benefits of the concept from the operators’ point of view:
Predictable Revenue Stream
A strong argument in favour of the tool is the rapid attraction of new audiences and turning them into regular visitors. When this happens, the business begins to receive a stable income.
The profit of project owners does not depend on the wins and losses of people, jackpot payouts, or other costs.
Entrepreneurs can perform the following actions:
- quickly reach a regular revenue stream;
- better plan their financial indicators;
- effectively allocate resources (money, labour, and time).
Engaged Client Base
Subscription models attract active and loyal users. They value constant access to premium, constantly updated content, enjoy participating in tournaments or missions, and become permanent members of the community.
More Accurate Analytics
The approach helps operators predict:
- gross and net gaming revenue;
- marketing costs;
- mandatory monthly payments (for software rental and hosting services);
- sums that are worth reinvesting for the growth of the business, etc.
Increase in the Value of Services
Thanks to the described model, online casinos are motivated to constantly create new content, features, and updates. This approach ensures that clients will remain interested and satisfied with their bets for a long time.
Improved Retention
The tool is also often used for a stable interest from players.
By offering personalised rewards, premium features, and exclusive entertainment, digital casinos guarantee that their subscribers will feel appreciated and engaged. All of this increases LTV. The indicator shows how much revenue gamblers bring throughout their activity.
Profitable Marketing
The described approach is a good basis for launching cross-sales.
The more time people spend on a platform, the more trust they have. This makes it easier to sell them additional solutions (such as sports betting) since users already understand the value of the brand’s services.
Reduction in the Outflow of Customers
Increased client satisfaction and a decrease in their churn are achieved by providing flexible subscription offers. This is a customisable cashback percentage, low commission level, interesting features (free spins and multipliers), and much more.
Secrets of a Successful Strategy
Key points that operators should pay attention to:
Affordable Price Range
Most often, subscriptions are linked to time intervals and are provided:
- monthly;
- quarterly;
- annually;
- seasonally (it is relevant for bookmakers).
As a rule, online casinos offer a monthly package, with the possibility of switching to a quarterly one in the future. This approach appeals to visitors since game fees do not seem too high.
The subscription cost can be lower or higher than the average range on the market. The total amount depends on the features of entertainment, the existing client base, and the vendor’s goals. The optimal option for the European region is $19.99–$59.99 per 30 days.
Multi-Level Hierarchy
Most entrepreneurs provide several subscription and content delivery options. Players can independently choose which option suits their needs and budget.
The presence of several offers increases the entrepreneur's anticipated profits. It is achieved through the receipt of extra income when visitors to the virtual platform decide to switch to a more expensive option.
It is essential for manufacturers to provide differentiation between the levels. Thanks to this, it is possible to motivate users to upgrade their membership more often and choose a higher tariff.
Branding
The name and type of the subscription should reveal the concept of the iGaming firm. It is better to have the solution’s design in such a way that it is made in the style of online casinos.
Project owners can use the following recurring elements:
- colour combinations;
- music screensavers;
- gamification tools;
- notification systems;
- approaches to counting points.
All this allows entrepreneurs to create a complete picture. None of the components of the entertainment platform will stand out against the general background. They will look harmonious and attractive.
Value to the Audience
The memebership model should contain:
- trial periods;
- flexible levels;
- transparent benefits.
Thanks to this, users will feel the value of such a solution before making a decision about paying in the long-term.
How to Create an Effective System
The main stages of launching a program:
- Collection and analysis of KPIs. Key performance indicators allow operators to understand what stage of development their business is at, how the existing metrics correlate with the competitors’ achievements, and what needs to be done for market leadership. Calculation of planned KPIs helps to predict the results of future periods.
- Study of the audience. This is a deep analysis of the gaming habits and preferences of clients, from favourite entertainment (slots, cards, or lotteries) to bonuses and applied payment services. Based on the obtained data, it is possible to create subscription levels that are relevant to the user experience, requests, and expectations of casino visitors.
- Creation of a membership program. It should be distinguished by a harmonious design, well-thought-out functionality, and advanced engagement features. It is also important to pay attention to details: settlement methods, a hint system, and ease of transitions between levels (with the betting history’s preservation and collection of accumulated points).
Available Alternatives
The tool is often used together with other business models, including:
- Deposits and bids of players. This is the basic scheme of work for many entertainment sites. Gross gaming revenue (GGR) is calculated as the sum of all bets of clients minus their prizes. The indicator is the base for calculating many taxes, so this metric should definitely be taken into account.
- Internal purchases. These are chips, tokens, bonuses, artefacts, skins of the main characters, and other elements that provide users with an advantage over other participants. The business model is often applied in social casinos to monetise Internet traffic.
- Advertising and sponsorship. Project owners cooperate with other brands, promoting their products or services. Interaction with the audience is usually achieved through in-game marketing, demonstration of sponsored content, or placement of branded offers.
- Agent system. Entrepreneurs earn money by providing ready-made gaming systems to other businessmen. Income can be fixed (in monetary terms) or calculated as a percentage of the agent's earnings.
The Main Things about the Subscription Economy in the Casino Niche
Subscription Economy in Gambling: Key Figures
Market Growth
Forecast for 2027
($1.6k/year)
Average Spending on Subscriptions
Key Benefits for Operators
Predictable Revenue
Regular payments independent of player wins or losses
Enhanced Loyalty
Personalised bonuses and exclusive features
Accurate Analytics
Forecasting revenues, expenses, and reinvestments
Increased Service Value
Continuous updates and content improvements
Reduced Player Churn
Flexible subscription terms, cashback, reduced fees
Steps to Launch a Subscription Model
Collect and Analyse KPIs
Assess performance and forecast outcomes
Study the Audience
Analyse player habits and preferences
Develop the Programme
Transparent functionality, user-friendly design, and seamless upgradeThis is a very useful and popular tool in the entertainment industry.
Key aspects that operators need to take into account:
- The advantages of the solution include obtaining a projected income, increasing the audience’s loyalty, and reducing the churn rate. Thanks to this system, it is possible to quickly form an engaged customer base and lower marketing expenses.
- Among the secrets of a successful strategy, we can name affordable cost, availability of a price range, and the product’s branding. It is also important to provide a multi-level hierarchy and emphasise the value of the service for users.
The Casino Market studio supplies the following advanced solutions for the gambling industry:
- turnkey portals;
- White Label platforms;
- systems for managing land-based halls with slot machines;
- lottery or bookmaker program components;
- security software, etc.
Have questions or want to order services?
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- e-mail: manager@casino-market.com
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