In the modern gambling environment, it seems to be safe to run a casino. Mostly they think that the players are at risk, not the owners. But the truth is that casino owners can easily fail and, as a result, close the casino. In this article, we will tell you about six points that European (New Zealand) casinos need to consider in order to avoid bankruptcy.
To run a gambling business, you need to be aware of all numbers and indicators.
There is an impressive list of key indicators (KPI) that will allow the owner to monitor the processes. Therefore, they analyze them in order to understand if there is a profit from the casino or if it is moving towards bankruptcy.
Two metrics that will give you an overview of the state-of-the-art are GGR (Gross Gaming Revenue) and NGR (Net Gaming Revenue). These numbers will show how much the casino received from the gambling activity before deduction of expenses.
If this data does not make you happy, you should analyze other factors. Rates to deposits and NGR to deposits will give a clear view of what percentage of the deposit players used to make bets and how much they lose. It is also necessary to collect information on the number of conversions, the percentage of retention and departure of players. Also check the number of active users per month and per day, the value of the user, and the average amount of income from the player.
Key indicators (KPI) for online casinos
Every online casino needs benchmarks to measure progress. KPIs (Key Performance Indicators), also called key performance indicators, can help in this.
If you carefully analyze all the important points, then you can find the gap and have time to eliminate it.
Ultimately, whether a business is successful or not depends on the owner’s ability to find a balance between profit and cost.
Gambling experts list six principles below that casino managers must apply in order to avoid the danger of online casino bankruptcy.
1. Make your players love you
In such a highly competitive industry, only those businesses survive that know how to attract and keep a pool of players and motivate them to come back to the site. Generally, this is not an easy task.
It is unlikely that users will change the casino’s site to a competitor if their favorite site increases value to them over time. In order to achieve this, usually, casinos introduce top online casino promotions, VIP programs, and loyalty privileges.
At the time users become members of loyalty programs, each new deposit, spin, and bet helps them to increase to a new VIP level. In case players make larger deposits, casinos offer them additional rewards and provide personalized customer support.
When casinos spend more time and money on each user, players less likely to leave it to another place. After all, there is no point to start everything in another casino from scratch, if you already invested a lot of money to grow the status and loyalty level.
2. Move faster than the competitors
The number of casino lovers, their age, preferences, as well as their tastes can change over time. When casinos choose the games for their site, the operator should think ahead about what will be popular in the future, and what players will like.
Everybody is aware of the classic games that are always in demand among millions of players. There is a reason for software providers to use fruit slots everywhere: they have always existed and there will always be players who will prefer them to any new products.
This is why almost every game developer in the industry of gambling games has a fruit theme in their lineup. They have slightly different games, for example, due to the additional elements and features.
They also create storylines that are popular among foreign fans of slots. Usually, the stories are based on mythology, which opens the opportunity to do experiments. Basically, slot creators compete with each other about who will make a game about Egyptian gods or Vikings more tempting and interesting. However, bananas and ancient Greek hieroglyphs are not for everyone.
The audience needs something more innovative. The main task of software developers is to regularly monitor this area on signs of new fire novelties from competitors. It’s important to identify the player’s wishes faster than other developers. Slots are surely the first thing to turn a glance at, but, in addition, new types of entertainment appear. These are shooters, a mixture of slots and wheel of luck, original lotteries, innovative ways to broadcast with live dealers, and new solutions for table games. The list of innovations expands daily.
A new trend is cryptocurrency gambling.
New trends in sports betting will appear as well. Operators with the ability to bet on virtual sports are taking the lead. Those who offer only sports betting, and do not pay attention to Esports events will lose the competition. To stay competitive, you always have to plan the future and offer users the most relevant and interesting content, something that will keep players engaged for a long time.
Companies that cannot follow the trends, or be the innovators and push the industry, will lose all the audience, not knowing what has happened.
3. Strictly follow the license terms
If a casino loses the license, it may ruin the entire business.
Operating without a license can have serious consequences, such as the loss of access to the target audience, and the loss of trust from loyal players. To prevent such an outcome, casinos must follow the local government conditions, including conditions regarding advertising and marketing policies. They should pay special attention to the KYL and AML policies, and introduce a strict but fast verification process.
Gambling Authorities pay particular attention to casinos’ customer support, how they can handle complaints and meet technical requirements.
In this problematic area, the operators should be proactive in all cases, and try to meet the expectations of the regulator. Necessarily, businesses should act responsibly, notice all changes in the jurisdiction under which they operate.
4. Start working in reliable jurisdictions and only then enter risky markets
It is very important for casinos to comply with the regulatory policies of the jurisdiction. But this can be difficult, due to unstable political and economic situations. We’ve seen the cases when governments suddenly began auditing casinos and charged huge amounts of taxes.
Therefore, in the beginning, the casino needs to gain a stable position in a reliable jurisdiction and only then move towards more profitable markets.
You need to thoroughly study the market and only after a deep analysis decide whether to enter it or not. Look at the background of the jurisdiction, and if history informs that requirements suddenly changed without any warning, most likely they would be rather unstable.
5. Monitor your bonus policy carefully
Bonuses are the main means of attraction of new users. Therefore, they register and play on the site for a long time. Bonuses are very beneficial since you can test games on a casino website without your own investments, as well as evaluate the advantages of the casinos in general and not risk large sums. For this, check out the $1 deposit online casino NZ.
Take into account that the bonus is not a free game, but just an opportunity to pre-evaluate the casino. We do not recommend you to take bonuses as free money.
There are many violators of the bonus policy. Bonus hunters are exploring gambling sites and looking for casinos where they can find gaps in the bonus policy.
The worst-case scenario is when users find out about loopholes and share this information on gambling forums with everyone who is interested. There were moments when online casinos lost several million because of such an activity.
To prevent users from using bonuses in this way, casinos must state very strict rules and conditions. Bonuses must depend on the wager, that is, players must play with the bonus amount several times before they can access the withdrawal of funds. Casinos also can set a condition that gives the user the right to withdraw only the winnings, but not the amount received as a bonus.
6. Set up smart marketing
Make sure to control the marketing costs. In order not to throw money in the garbage you need to form a perfect marketing strategy, including, for example, cooperation with affiliates.
Performance marketing allows you to make sure that casino payments are made only if there is a high-quality conversion. Affiliate services that bring traffic to the platform receive payment only after the player’s registration and deposit. You will clearly understand whether it makes sense to continue working with specific partners.
However, it does not mean that casinos need to register in all affiliate programs. This will only lead to the fact that you have to send to partners impressive money transfers.
7. Constantly add quality games to your portfolio
New Zealand players mostly launch casino games for the boost of emotions. If the casino doesn’t give them what they want, they will leave. If there is always something to play, players will always return.
Therefore, casino owners need to make sure that players always find what they want. For instance, the operator must integrate top-quality, diverse content from the top suppliers in the industry. Don’t forget to include software providers such as Microgaming, NetEnt, Play’n Go, Evolution Gaming, Yggdrasil.
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