Even if you are not an expert in gambling, you can tell that the industry is flourishing. The numerous changes in gambling legislation in some parts of the world have led to the arrival of tons of new sites and land-based operators. In other words, these businesses most likely earn a lot of money.
Having said that, www.multibisnis.com reported that the majority of the revenue generated from sports betting and casinos (two of the most popular types of gambling products) comes from a handful of players. The stats from Quitgamble.com show that a mere 5% of players are responsible for 86% of the sports betting revenue that companies generate. This means only one thing – some users spend a lot more money than others.
Contrary to what some may think, most of the sports betting fans who wager more money don’t like to experiment. Instead of creating ACCA bets with multiple selections, they often wager a large amount on a single market. A lot of celebrities, such as Drake and Floyd Mayweather, do that all the time.
While it’s true that there are not that many high rollers in sports betting when compared to online casinos, some users are happy to spend a lot more money than others. Unfortunately, there are also many punters who do not have that many funds but keep playing. The downside here is that some of these users may struggle with gambling addictions. This prompts regulators to mandate that gambling brands promote responsible gambling.
There is a lot more to talk about when it comes to gambling revenue and where it comes from. Let’s analyze some of the more intriguing stats that you probably were not aware of.
5% of online casino players are responsible for 82% of the site’s revenue
The stats for sports betting definitely surprised a lot of you, but the statistics for online casinos are equally interesting. Some studies reveal that close to 82% of an online casino’s revenue comes from just 5% of players. In other words, these 5% wager way more than the rest and are usually called high rollers.
But how do online casinos attract high rollers and make them spend more money than others? Well, the first trick that sites use is to provide different kinds of bonuses. The types and number of deals will depend on the operator, but there will always be percentage types of offers. In other words, they are designed to give more money to people who deposit more funds.
After seeing these bonuses, high rollers and regular gamblers decide to transact more money. There are instances where gamblers get lucky and win additional cash while using their offers. However, this does not happen that often because most of them lose their bonuses and their deposits.
Another trick online casinos use to lure these 5% is special games with high limits. These titles are similar to traditional casino games, but their maximum bet limit is much higher. Consequently, people end up taking way more than usual.
Alongside all of this, the 5% that makes up 82% of the revenue also participates in different tournaments. Moreover, casinos have exclusive VIP programs that reward those who wager large amounts, stimulating them to contribute even more.
Live casino and slot players have a 74% and 70% role in casinos’ revenue
Aside from online casinos, many gamblers are fans of brick-and-mortar operators. They believe that these places offer many more options than their online counterparts and that users have the chance to talk to others while playing.
If you visit a land-based casino, the first thing that you will see is tons of slots. Since so many people like playing slots, it’s probably not surprising that the losses of 5% of slot players contribute close to 70% of the casino’s revenue from these games.
Slots are famous for being easy to play and having good betting limits. Users can often play with as little as $0.10, but it is possible to use more than $1000 per spin. The 5% that we are talking about falls into the second category.
In addition to slots, brick-and-mortar casinos also have loads of live games. In fact, this is also the place where most high rollers go when they visit these operators. Some of these live casino tables have exceptionally high limits, which explains why 5% of people who play these games bring in 74% of the revenue that the casino generates from them.
The most popular live casino games that people spend their money on are poker, blackjack, and roulette. It’s safe to say that these three are the main pillars of attraction for every big casino. Since casino whales like them and they bring in most of the revenue, operators focus a lot more on them.
Some companies also started offering other types of options, such as different baccarat variations and even game shows. The latter proved to be very popular in online casinos.
Slots and other casino games are behind 93% of the revenue for gambling companies
Many are curious whether casino games or sports betting bring in more profit. If the stats hold true, casino games and slots prevail, as they account for 93% of the revenue for companies in the gambling business.
We have already discussed why people love playing and how operators lure them to spend more. Overall, slots and casino games are usually easier to understand than other types of gambling. Players don’t need to have any previous experience to play, which attracts even casual fans. Needless to say, most of them lose their money fast when they don’t know what they’re doing.
Should we be worried that such a small percentage of people are responsible for the majority of revenue in gambling?
Many people will be surprised or even shocked that such a small percentage plays such a big role in the generated gambling revenue. Some may not find this problematic, but we think that this is a sign that many users have issues with gambling.
Speaking of the devil, there are many intriguing stats about gambling-related problems. For example, many studies show that China is leading the chart in terms of users with gambling addictions, with close to 60M people. Although the Chinese gambling laws are harsh, it seems like gamblers find a way to play.
The stats for the USA are also interesting. According to data from a few years ago, close to 20 million users in America experienced gambling difficulties. This number probably increased a lot in the last couple of years following the country’s legislative changes. As you probably know, many US states have started offering online casinos and/or sports betting websites.
All of this data means one thing – more and more people will have a hard time keeping track of their gambling expenses. Sadly, some also develop different gambling addictions, leading us to the next important point.
Gambling Addiction Stats You Should Know
Modern gambling websites offer all sorts of features for responsible gambling. Their goal is to help people who have issues and prevent them from developing gambling addictions and/or other issues. Despite that, some players end up having these problems.
If we analyze the stats, we can see that the age group of 18-24 (18 is usually the minimum age for gambling in most countries) comes with the highest percentage of users with a gambling addiction (7.1% in total). Fueled by the “get rich fast” mentality, players are more prone to risk, which could result in developing a gambling addiction. For comparison, the percentage in the 55+ age group is 0.5%.
Final Thoughts
Due to the growing number of sites that offer gambling services, there will be even more users in the future. Sadly, some of them will develop a variety of issues, so it’s more important than ever to promote responsible gambling.
Modern technology allows us to limit the money we spend while playing. We can also ban ourselves from using a given gambling operator, set a time-out, or make it so that land-based casinos and betting shops prohibit us from using their services. We recommend learning more about everything before you decide to play.
The good news is that gambling regulators worldwide follow the stats closely and recognize the risk. As a result, they started enforcing strict rules that all gambling businesses must follow. Hopefully, this will regulate the industry and allow gamblers to have fun and enjoy themselves without getting in trouble.
