How Do Casinos Stay in Business?

We have all run through the same scenario in our heads. We head to an online casino UK, win a fair old bunch of credits at the table, cash them in and go on our way. It seems painfully easy, almost like a ‘dead cert’ investment. Once those winnings are in our account we begin to wonder just how the casino is in business. If they’re paying out winnings that easily, where are they making a profit? Just how can a new online casino UK stay in the market and withstand such payouts? The answer is actually quite simple, although it needs to be answered in a few steps.

Law of Averages

Firstly, any player needs to remember that, for every time they’ve taken some winnings from a casino, it was their lucky day. Unless you are a professional poker player (and even then it is still not guaranteed to be a good day!) then using online casino software is always going to be a risky business. Each card that turns over is randomised. Simply put, you had a lucky result, and this means that your next one could easily see your winnings get pumped back into the casino’s coffers. Likewise, as you win, others are losing, often in real time. Think about a real life casino. Every time someone shouts out loud that they’ve won, a look around will show ten times as many people down on their luck. This is how the casinos make their money in the main.

Winnings Are Often Already Paid For…

Many online casinos will regularly run tournaments with a minimum buy in. This is particularly true in poker tournaments. In a real casino, the player can look around and see their competition. If they look serious or skilled enough, or the player knows from previous experience that they’re up against the best, the buy in becomes a less attractive option. However, online, the situation is quite different. All any player will see is the name or handle of their competition, and very often, several tournaments will be running at the same time, such are the options with a non-physical setting. For each person that buys in, they are effectively contributing towards the eventual payout. So, when a player walks away from the table with a nice win, they’re actually only taking away all the combined buy ins from other players. The casino, despite paying out for a win, has already made its money, and the payout is probably still less than the sum total of everyone’s price of entry.

Online Casinos Get Real Life Backing

Vast amounts of losers and combined buy ins aside, one must remember that when opening up real money casino apps, or logging in on a PC, they are often just entering one wing of a larger machine. Most UK casinos that can be found on the high sreet have an online arm…players will often notice that they have the option of betting on real life blackjack, baccarat, roulette or poker. The cameras that they follow in real time are often placed above the tables of real life casinos owned by the same company. And everyone knows that, in a real life casino, the tables make up only a small part of the casino’s income. Hospitality is often a large part of a casino’s profit, and so tempting players in online with the promise of a large deposit bonus, or a guaranteed payback up pto a certain amount in the case of a loss, is like water off of a duck’s back. Get paid back £100 on a losing bet and it’s no issue; the real life casino has probably taken in several times that amount in the time it took you to place your bets!

One must remember that no online casino will exist solely to benefit players. Receive a payout, and the casino is already taking steps in other areas to mitigate the payouts, and this works both ways. Online and in real life, both parts of the casino work in tandem to make sure the house is always one step ahead of the players.