Nothing affects the brand’s reputation as positively as timely payouts of the money that was earned by gamblers. However, sometimes events beyond the control may happen when the size of a prize is bigger than the size of funds that the operator has.
A well-thought-out financial strategy and accurate calculations made by the business owners will help them to avoid a lot of problems in the future.
The casino's basic prize pool is the total sum of money on the company’s accounts, which is going to be spent on the payout of the won money. All funds are accumulated in separate banking accounts of the enterprise.
Depending on the method of organization, there are the following types of deposits:
Its creation is one of the compulsory conditions for the issuance of a permit for the gambling activity in many tax jurisdictions. For example, Ukrainian law adheres to this principle. The minimum bank guarantee for land-based and online casinos is 34 thousand hryvnias.
Many European countries, such as Estonia, calculate the size of their reserve funds in percentage depending on the amount of share capital. If at the time of obtaining the license, the applicant has not enough funds, then the reserve fund must be formed in future with the net profit. Companies should annually send 1/7 of the income until the required amount of money is collected.
They use funds to cover the unforeseen expenses during the work of a gambling project. Big winnings in casinos are also paid from the fund if there is not enough money on the current account of the company.
This is the sum of bets of all gamblers in one casino (or in a network of gambling establishments) in the selected period of time. The size of the fund is constantly changing. It depends on the winnings in online casinos and the overall activity of clients.
If the creation of the reserve capital is regulated by law, then, current savings will always be only the operator’s task. Their calculation is complex and requires a certain set of knowledge and skills.
Planning of the amount of the fund is an important step in the launch and subsequent operation of a virtual platform. If everything is done correctly, operators will never be in a situation where gamblers win more money than the casino has at the moment.
The calculation method looks like this:
As for the revenue side of the fund, it is formed only by the operating income that comes from players.
Experts recommend operators to distribute each bet made by a visitor according to the following principle:
The already promoted platforms often change the stated correlation depending on their needs and additional sources of income. Such casinos make good money on the advertising and because of the additional funds, good bonuses are paid to the employees or the prize pool is increased.
In addition to planning the size of the prize fund, you can use the following tools:
These are progressive jackpots, in which two or more casinos participate, and the drawing itself is organized by a well-known software vendor. Microgaming, NetEnt, Evolution Gaming, and other well-known providers have such offers.
In this case, the payment of winnings in a casino is the prerogative of the brand that organizes the jackpot draw. To become a participant in the action, you must sign an agreement and rent the content from a specific developer. Then, the provider opens a special account for the operator, on which the necessary funds are accumulated.
Tournaments, as one of the effective ways to retain customers, can be held every week, once a month, quarterly or be confined to a specific event.
The formation of the fund has its own specifics:
One of the main functions of CRM systems is the creation of various analytical reports. The received information is useful for planning the casino budget and its important component — the prize pool.
The CRM system will calculate the number of real visitors, offer optimal limits for bets and withdrawals, plan the amount of profit for the future, and help you to identify real financial risks in the operation of the platform.
A well-thought-out back-office will also become a reliable assistant for the business owner. As a rule, such an option is already built into the purchased software, so some complex settings are not required.
Online casino wins are a compulsory component of the expenditure budget of the enterprise. In the long run, the company will always benefit but, at a certain point, gamblers always manage to hit the big jackpot.
The casino should pay the earned money on time. For this, it is important to properly plan the prize fund of the enterprise, the calculation of which is a labor-intensive process.
Casino Market will help you to create a financial strategy and calculate micro and macro business indicators.
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