Are Online Casino Websites More Lucrative than Land Based Casinos?
When talking about casinos, most people still think of land based casinos in cities like Las Vegas, Macau, or even Auckland for those that want to play somewhere closer to home. In recent years, online casino websites have turned out to become a fundamental part of the casino industry and one of the reasons for the growing popularity of online platforms is their profitability. This actually holds for both parties as casinos are usually those that win, whilst lucky consumers still have options to win life-changing numbers. This guide compares both online and offline settings giving you the best option when it comes to profitability.
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Same, But Different
Let’s start by saying that online casino websites and offline casinos are similar — but not so similar. Whilst the online gambling industry is highly dynamic, the traditional land based casino industry largely remains static when it comes to their casino offer (we’ll elaborate on this below as offline casinos do try to distinguish themselves in other aspects). Every now and then frequent players will see new pokie machines with perhaps some extra screens and features, but that’s basically it when it comes to the games available.
For most visitors of land based casinos, the main goal is actually to socialise as we’re talking about a night out that involves more than merely making bets and winning money. The liveliness of the casino floor, table games, and pokie machines will make you feel part of the action, as you plunge into this nearly magical atmosphere. On the other hand, opting for online play will let you play for free, receive welcome packages, claim free spins on signup, and get cashback bonuses. You’ll have a round-the-clock chance to play your favourite casino game with thousands of titles waiting for you at your fingertips.
Land based venues and online websites have increasingly grown apart and each have their own objectives with brick and mortar casinos focusing on the total entertainment experience whilst online casinos prioritise ease of use and million dollar prices. In a land based casino you’ll likely find live music, dining options, and other forms of entertainment as well which is how brick and mortar establishments try to set them apart from online websites that are mostly known for their financial benefits and convenience.
Comparing the two is therefore difficult as it all depends on what you’re looking for. It is still fair to say that online casino websites are a lot more lucrative than their land based counterparts. We’ll delve into some of the reasons why casinos sites are more lucrative.
Difference in Operational Costs
When it comes to operational costs, this is definitely a big plus for online operators. As online casinos are run in a virtual cloud, online sites can significantly save on operational costs like space and personnel payrolls. At the same time, punters get to save on expenses like transport, parking fees, and drinks as they now participate from their couch’s comfort.
The initial capital needed to open a land based casino is also a lot bigger when compared to online casinos which is why it’ll take a newly launched land based casino a lot longer to break even. In addition to registering the legal entity and getting a valid licence, the operator will also have to set up a fully functional gaming establishment. This involves renting or buying space, purchasing furniture, equipment, pokie machines, and contracting and training personnel. Although some cities with a magnitude like Las Vegas or Macau attract international visitors, most venues will welcome national, regional, or local visitors.
Unless they’re tied to a certain country, most online casinos, however, can cater for the needs of players from all over the world that have access to the internet. The costs associated with launching and running a new online casino are a lot lower, and the average operator will break even and start making a profit within a short period of time. Some operators launch brand after brand, using the same framework, payment methods, and games library on a new website that has a different theme or target audience.
Lucrative Bonuses and Promos
With more operators making their way to the online casino market every day, the fierce competition has given players a favourable and lucrative opportunity. This explains why online casinos offer generous promotional offers and loyalty programmes. The idea behind, what we would label as aggressive marketing campaigns, is to remain top of mind. One way to do this is to offer bonuses. Ideally, casino bonuses result in wins, but you should nonetheless read the fine print before joining and claiming a bonus to avoid any uncertainties or surprises.
Free Games
One of the biggest benefits of online casinos over land based casinos is the opportunity for beginners to learn such games as online pokies, blackjack, baccarat, and poker for free by making use of the free demo mode that is available for most RNG games. This way training takes place whilst playing, without having to wager with real money. Trying a game for free in a land based setting, however, is nonexistent. As we all know that practice means progress, it is fair to say that it is more likely to make a win after understanding all the rules of a game. In any land based casino you’ll need a few spins to fully understand how the game works which makes you’ll probably lose the first wagers you make.
Online Casinos Have Higher RTP’s
There are major differences when it comes to chances of winning when comparing offline and real money online casinos NZ. This is noticeable in what is referred to as a game’s payout percentages, Return to Player, often abbreviated to RTP. When it comes to chances of winning for the player, online casino websites win hands down. RTP’s of online pokie games are always better than the payout percentages at brick and mortar casinos.
This mostly applies to pokies which tend to pay out around 96% to 97% in online settings. At land based casinos, this percentage tends to be somewhere between 88% and 93%.
We’re talking about huge differences here that can go as high as 10% making a huge financial difference for frequent players in the long run. The reason behind the different payout percentages also lies in the fact that online platforms have lower operational costs which allows them to pump up their return to players. Land based casinos do the exact opposite by lowering their RTP’s in order to cover their higher operating costs.
Do bear in mind that software developers want to accommodate for the needs of online operators as well which is why most new generation pokies are available with ranging RTP’s, basically meaning that the same online game is offered with multiple RTP’s such as 96,5%, 94,5%, 92,5% and 90,5%. This ranging setup particularly favours casinos as this gives them the flexibility to offer the game at the RTP level they consider reasonable. Gamblers will need to pay extra attention to make sure they’re enjoying the highest possible RTP.
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