The online gambling industry is a multi-billion-dollar powerhouse, with iGaming brands generating substantial revenues worldwide — and they’re continuing to grow at an impressive pace. The overall market size has tripled in just a decade and is now valued at over $90 billion.
But what portion goes to online casinos specifically, and what’s the average per platform? How much do online casinos make in a year or a month? This article answers these and many other questions, so keep reading to learn more.
How much is the gambling sector worth?
To answer the question of “how much money do online casinos make?” we first need to understand the value of the whole gambling market. Here are the key stats, with sources listed on the bottom of this page:
- • The revenue of the overall gambling sector is set to reach $239.53 billion in 2025.
- • The US is projected to generate $65 billion casino revenue in 2025, equalling 27.21% of global earnings.
- • The casino sector’s CAGR is projected at 3.64% from 2025 to 2029, reaching $276.36 billion by 2029.
- • The number of users in the overall casino sector is set to reach 555.9 million by 2029.
- • The online casino market, valued at $17.13 billion in 2023, is projected to hit $38.66 billion by 2030.
- • The growth rate (CAGR) of the online casino market is expected to be 12.4%.
- • The iGaming market was valued at $85.62 billion in 2023, with online casinos making up 20% of the total.
- • The number of online gambling users is anticipated to reach 290.5 million by 2029.
How does an online casino make money?
In essence, the primary way online casinos make money is from you playing, or better said, from you losing while playing games.
All casino games are built with an RTP (return-to-player) percentage, which determines the average amount of money you’ll get back from the funds you wager. This percentage is always below 100%, with the difference known as the house edge.
For instance, if a game features an RTP of 96%, this indicates a house edge of 4%. Theoretically, the casino will receive around 4% of all the wagers placed on that game. With thousands of players engaging in the game, the casino can accumulate significant revenue from this relatively small percentage.
This model means that the casino aims to attract as many players as possible. The more active users on site, the more the platform will earn, statistically speaking. This is especially true with VIP “high roller” players who have the bankroll to wager excessive amounts.
Online casinos use bonuses and various other promotions to entice new players and retain existing ones. These deals give players the chance to win real money, but they are restricted by T&Cs that ensure the casino is protected from extensive losses.
Although the house edge makes its business model sustainable, it’s still possible to make money from online casinos on an individual basis. It all stems from the fact that the “house edge” is theoretical, meaning there’s no reason you can’t win at a rate above the advertised RTP.
| If you’d like to learn more, read our guide on how to make money from casino bonuses. |
How much do online casinos make from games?
The games offered by online casinos are primarily determined by chance rather than skill. For instance, slots and virtual table games rely on Random Number Generator (RNG) algorithms, which ensure that each outcome is random while still adhering to the game’s basic rules. However, they are still restricted by the built-in house edge.
The house edge in casino games differs greatly, but on average, it sits between 2% and 10%. In other words, the platform is expected to keep a percentage of all the bets made on these games within that range.
With the house edge typically ranging from 4% to 5%, slot games typically contribute the largest share of a casino’s profit. As a result, most game providers prioritize creating slots, meaning you’ll find thousands of slot titles at the best online casinos.
Casinos don’t keep all of these earnings, however. They primarily share them with the game providers through a monthly licensing fee or revenue share model. These percentages depend on a wide range of factors, including:
- • Provider popularity
- • Demand for provider’s games
- • Game type
- • Terms of the deal between provider and casino operator
Online casinos often collaborate with affiliates who drive players to their platforms, rewarding them with a commission. Many casinos offer a fixed commission for each player referred, along with a revenue share ranging from 20% to 50%.
How much revenue do online casinos generate?
With the global online casino market valued at just over $17 billion in 2023 — and around 5,000 online casinos are in operation worldwide — the average value of each casino sits at roughly $3.5 million. Still, the distribution of market value is far from even. A small number of major operators dominate the market, generating far higher revenues due to their brand recognition.
Smaller brands typically generate between $100,000 and $500,000 in revenue per month. Mid-sized and larger brands can earn anywhere from a few million to over $10 million monthly. However, these figures vary significantly, making it difficult to provide a more precise estimate.
How much do online casinos make per person?
Judging by the RTP and the house edge on various casino games, the casino profit margin is very low at only between 2% and 10% of a player’s total wager.
The exact amounts casinos make per player can still vary once we look at the numbers. They depend on factors like the average bet size, games played, and duration of playing sessions. Sometimes, all it takes is a few VIP players to boost a casino’s revenue significantly.
The amounts differ greatly based on the player’s location, too. For instance, Americans gamble as much as $1,027 over a year, or around $86 per month. New Zealanders spend $572 per year in online casinos, which is less than $48 a month. As for Ontario, Canada, a player spends an average of $174 per month.
Online casino expenses
Determining revenue is one thing, but the casino’s profits can be calculated once we consider standard expenses. The biggest outgoings include:
Taxes
Online casinos are subject to taxes in the country they are registered in. For instance, US online casinos pay taxes on their gross gambling revenue to the state they operate in, which ranges from 14.25% to 51%.
Licensing fee
Every legitimate casino must hold a gambling license to avoid regulatory issues and gain player confidence. Casinos usually need to take care of initial and annual online gambling license costs, typically over $100,000.
Employee salaries and operational costs
Online casinos can spend millions annually on salaries and varied sums on operational costs, including office utilities and rent.
Software licensing and revenue share
As you’ve learned, online casinos must pay licensing fees to game providers and share a part of the revenue from these games.
Payment processing fees
Online casinos spend up to $5,000 on payment providers to include various deposit and withdrawal methods for their players’ convenience.
Marketing and advertising
Marketing is a big consideration for every online casino, with operators paying varying amounts depending on their customer acquisition needs at any given time. These costs can be as low as $10,000 and as high as $200,000 monthly.
Affiliate costs
Most online casinos and affiliates make deals in which the casino pays a fixed fee for every player the affiliate brings (up to $250 per customer), and a percentage of the net revenue each referred player generates for the casino (RevShare, 20% to 50%).
Other costs
Online casinos bear various other recurring costs, including website hosting, online security, customer support, and other miscellaneous expenses.
Conclusion
As you’ve seen, online casino earnings vary from as little as $100,000 to over $100 million a month. These brands primarily profit from the house edge attached to their games, which sometimes exceeds 10%, as well as from high-stakes losses from VIP players.
Revenue and profits can fluctuate significantly based on several factors, such as the markets it can operate in and the player base it attracts, while expenses also have a significant impact. However, with the value of the online casino sector booming, the industry shows no signs of slowing down.
FAQs
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References
- Gambling Market 2024 (The Business Research Company)
- Online Gambling Market Size, Share & Trends Analysis Report (Grand View Research)
- Casinos & casino games – Worldwide (Statista)
- iGaming Industry Growth: Key Statistics and Trends (iGamingExpress)
- How much do online casinos make per person: profit per day, per year (Slotegrator)
- How Much Do Online Casinos Make? (PlayToday)
- How much do casino owners make (BoomAff)
- 80+ Impressive Online Gambling Statistics & Market Trends 2024 (PlayToday)
