The Business of Gambling – Analyzing How Much Casinos Make Each Month

So, you’re wondering, “How much do casinos make each month?” The answer will vary from website to website, but I have some ideas about how we might calculate what an average Internet casino makes each month.

Keep In mind that this is all speculation, as we are not an online casino, nor do we have any concrete information about these company’s finances.

It’s also challenging to pinpoint casino reports and verify their accuracy.

Feel free to continue reading and see the crazy amount of money that these online casinos can generate.

How much do casinos make a month, you ask? Well, it’s not easy to pin down the profit margins for each casino.

We will have to do some calculations and make an educated guess on how much online casinos make.

It’s also important to know that not all casinos make a ton of money, but we will get into that later.

US Casinos made $60 billion in gross gaming revenue (GGR) in the last year. Average that out over 12 months, and we get $5 billion in monthly revenue.

This is a rough estimate and doesn’t show us the full picture.

If you wanted a simple answer to “How much do casinos make” then you could say $5 billion per month and go on with your day. For those of you who want to dig a little deeper, let’s.

It’s important to distinguish what casinos we are talking about here. Comparing land-based casinos to online casinos isn’t exactly a fair fight. Land-based casinos make the most money and by quite a large margin.

They accounted for over $50 billion in revenue of the record $60 billion in 2022. That is more than 80% of the total GGR. Generally speaking, $50 billion in yearly revenue would come out to just over $4 billion in monthly profits.

Certain months make more money than others, making it hard to answer, “How much does a casino make a month?” January 2023 was the best month for casinos in the last two years.

The previous month (December 2022), they also performed very well. October and March were also the most profitable months for casinos last year. They both made over $5 billion in revenue.

So, how much do online casinos make? It’s pretty safe to say land-based casinos make around $4 billion, while online casinos make less than a quarter of that.

How much do online casinos make? To have record-breaking profits, you have to outperform your costs by a large amount. We’ll have to look at expenses to understand the whole picture better.

You are probably aware of the costs of running a land-based casino, such as property fees, wages, taxes, and whatnot. Most casinos are also hotels, so much of their funding goes into that aspect.

Online casinos are entirely different. Most of the costs have to do with the software for their games. Playtech, Microgaming, and Net Entertainment are three of the biggest software providers for online casinos.

It’s estimated that these three companies make up nearly 60% of the whole online industry.

So, what does it cost to use this type of software? These providers charge north of $10,000 a month in addition to a percentage of the casino’s winnings. The percentages can vary, but most land between 15% to 25%.

Online casinos also need to fund their workers as well. They have help center staff, live dealers, and more that they have to account for. Don’t believe me? Check out a live dealer online casino for more evidence.

You might have seen how casinos offer welcome bonuses and wondered how it ties into everything. Well, it’s hard to tell how often they actually lose money from their welcome promotions.

Each site has a different welcome bonus, but the rollover requirement helps them reduce their risk. For example, you might need to meet a 20x rollover requirement before you cash out.

If you deposit $100 and get an additional $100, you would have to win back $4,000 ($200 x 20) to withdraw.

It’s rare for a new player to win back all their money, which means the casino doesn’t lose anything. Think you’re up for the challenge? Check out the best online casino bonuses to get started.

Now that we’ve asked, “How much does a casino make,” what about what games make them the most money? If you’ve made a trip to the casino, you would know there are many different ways to gamble.

As they say, the house always wins. This is because all casino games have a house edge. Some are smaller than others, but the games are made to where the casino comes out on top the majority of the time.

You can play certain games to reduce the house edge, but in the end, they still have the advantage.

If we connect the dots from earlier, you’ll find that land-based casinos also do most of the heavy lifting here. Slot machines and table games made $3.97 billion in revenue in 2022.

Sports betting and iGaming are on the rise and have produced $678.7 million and $465 million in 2022 revenue, respectively. These are impressive numbers but are still far from slot machines and table games at land-based casinos.

That said, the growth in these two categories has been steady over the last few years. Don’t be surprised if we continue to see improvement on a year-to-year basis for mobile casinos and their games.

If you came into this wondering, “Do online casinos make money,” the answer is yes, but in multiple different ways.

How much do casinos make? Well, the answer is a bit hard to find. We have some general numbers to go off of, but it’s hard to know the costs and expenses of everything involved.

We have found that land-based casinos make much more money than online casinos. Land-based casinos make around $4 billion per month, while online casinos make around $830 million.

It’s not like $830 million a month is not impressive or anything. In fact, most companies would consider themselves a major success if they reached that mark.

With these details in mind, it’s not hard to understand that most revenue comes from slot machines and table games. These are the most popular games in the casino, so it’s no wonder they do so well.

You might find yourself wanting to get in on the action after finding out how much money is involved at these casinos. If you’re new to the scene, I recommend this online casino tutorial if you’re a beginner.

Footnotes:

• American Gaming provided casino revenue figures.