Going into the gambling business, of course, it immediately becomes interesting to calculate the profitability of, for example, a turnkey casino. Strategic planning and accounting calculations are important issues. Especially when it comes to the implementation of casino games software. Instead of poring over textbooks on management, finance, and accounting for years, we invite you to read a short introductory article from our company. We will explain the main financial indicators, which are worth paying attention to when you open a casino business. You can contact us to simplify the whole process.
Let us imagine the situation. The end-user is already on the game site. He swings between roulette and slots, what else can we offer to him? The iGaming software package provides you with a bunch of tools to get the job done. Whatever the operator wants. Going to the top of the admin panel hierarchy, you can modify many of the game’s processing settings — return to a player also (RTP).
Casino Games Software: Let’s Calculate the Yield
Once the business owner has decided on a particular model of gaming business, work begins on the financial performance. Let’s start with the gross gaming revenues of the project (GGR). The total amount of bets of all customers minus winnings — that’s what this indicator means. The value of GGR can vary from month to month. The attendance of the players affects the profitability, as does their luckiness (the number of jackpots won in the reporting period). In some ways, slot machine software can influence their luck.
An even more important indicator is the net gaming revenue (NGR). This is gross income minus operating expenses. The size and structure of costs depend on the type of iGaming project. Owners of turnkey casinos pay license fees, commissions to payment providers and affiliates. Operators working under the White-Label scheme or franchise agreement also pay royalties to the parent brand. Casino Games Software from Imperium-Games will help build your business with minimal operating costs on the market.
Let’s also talk about the cost of engaging a gambler (CPA). CPA indicator reflects how much money the online casino spent to attract one player along with his further registration and initial deposit. The total amount takes into account both direct advertising costs and payments to affiliate services.
Another powerful indicator of the performance of iGaming software is the average revenue per user (ARPU). The net income of the casino should be divided by the number of active users per week, month, year. The resulting amount can be compared with the cost of attracting players (CPA) to assess the effectiveness of the marketing strategy.
The last indicator with which you can assess the effectiveness of the slot machine software is the lifetime value of the player (LTV). The marker shows how much income a certain gamer brought in during all his gaming activity within the iGaming project. The businessman should strive to increase the average gamblers’ check and prolong their time on the site.
Slot Machine Software: Conclusion
Net Gaming Revenue (NGR) is a key parameter in the entrepreneur’s planning calculations. Indicators to be aimed at are 30-40% of operating revenue (the difference between bets of gamers and their winnings). Staff salaries, marketing expenses, casino software rental fees — all of these things will eat up to 60 percent of base revenue. Now you know even more about the intricacies of the gaming business. We are sure that you are this new player in the entertainment industry. Imperium-Games company offers you to buy a turnkey online casino. We supply a gaming platform together with entertainment content, payment software, security features.