Online gambling platforms and brick-and-mortar casinos are more similar than most people think. And one particular similarity they share is in how they make money and remain profitable. While many ask this question, most are unable to properly point out the answer. And the few that can answer only point out the most obvious answer which is the house edge.
But besides the house edge, there are some other ways that gambling sites make profits and this is what this article is here for. Here, we will look into the various methods through which casinos generate revenue, and whether it’s an online casino real money platform or a brick-and-mortar establishment, understanding the different revenue-generating methods is essential for both players and operators alike.
The Handle
Contrary to what many think, the house edge is not the major way gambling halls generate income. Rather, it is the handle that brings the most profits. Thus, it is the most significant part of the gaming operator.
The handle simply is the sum of the money that the players stake in a game. And it usually consists of chips or cash. With the handle, the outcome could be either way. It could be that the player loses the bet and the casino profits or the player wins the wager.
Furthermore, while the handle is often confused with drops, the two are not the same. Drops indicate any money staked by the player and they are usually traded for chips. But in a few cases, these two terms can be used to mean the same.
In addition to this, the income generated by the handle depends on the following factors:
- Amount of time the gamblers play
- The house edge
- The average wager
These factors thus explain why casinos focus on games based on your average bet and the time you play instead of the actual amount you win or lose. In simple terms, the more you use the machine, the more profit the hall makes.
House Edge
For most punters, the concept of the house edge is quite detested. And this is because it is the mathematical advantage that the casino has on every game over the player. This house edge is the main reason why playing at casinos is called gambling.
With the house edge, there are two ways things can go but the exact result is not known. The first is that the player loses and the other is that the casino wins, therefore, both parties have equal chances of success.
After a gambling session, the amount the casino wins is equivalent to the amount left with the hall after every player has paid their wager amounts. And this could either be negative if the casino loses more money or it could be positive if the players lose more to the casino.
Comps
Comps are very similar to incentives or bonus offers given to players. These comps could be given because a new player just signed up or maybe because the player stakes heavily. And they are based on the amount paid by the punter as well as the time spent while gaming.
Generally, comps do not often work in favor of punters. And this is because the more time you spend at the casino, the more you’re likely to stake, and the more money you tend to lose. Additionally, chasing after comps may make you spend more money than usual and when compared to the comp offered, it ultimately is a loss for the player. As such, comps are, more or less, baits through which casinos ensnare players to stake more. But ultimately they make profits off them.
Conclusion
Casinos, more than most other businesses generate more revenue. And the above-mentioned are some ways they do this so make sure to take note.