Have you noticed how new casino apps are popping off every day? Well, there is a reason for this – money! Casino apps are in the most lucrative industries, valued at billions of dollars.
With so many companies chasing a piece of the pie, obviously, casino apps are making a lot of money. But the big question is how? Are they only making money on the people who are losing, or do they have other revenue generators?
Well, casinos are designed to be profitable from day 1. It is one of the most bulletproof systems of making money, and the only way for a company to go bankrupt is by not having enough players.
There is something called a house edge, which is a mathematical edge that always falls towards the casino. In other words, the casino always wins. All of the games are programmed that way. So, their only job is to bring customers to their website, and they are making money.
But let’s dive deeper into how they manage to generate billions in revenue.
The House Edge
Let’s start with the house edge, which is their biggest source of income. At the core of every real-money casino app, the profit lies in the house edge. This is a built-in advantage that ensures that the casino comes ahead over time.
Slots have the biggest edge, ranging from 2% and can go as high as 15%. This means that the casino will payout only 90% of all the total money wagered, keeping 10% as profit.
Other games like blackjack have a tighter 0.5% edge, but that is only for skilled players, and most of them aren’t, so they are making a lot of money on blackjack too!
We may be talking about small percentages ranging from 0.5% to 10%, but if you multiply those by millions of daily bets, the revenue piles app fast.
The Secret is in the Volume of Bets
As we mentioned before, casinos that are getting a lot of traction (meaning that they have a lot of daily players) are making a lot of money. For example, a single app can see around 1.5 million daily active users, each wagering anywhere from $1 to $50 per session.
This means that the daily casino revenue is $1.5 million even if people only wager $1 per day, and they keep around 10% of the revenue as net profit. This means that popular apps like the ones covered at casinoapps.com with millions of users per day are making a lot of money.
The most difficult thing about running a casino business is the start. At the beginning, it is hard to get customers since there is a lot of competition, but once the customers come, you will be generating a lot of money every day.
Bonuses
So, how do online casinos encourage people to keep playing? Well, they have many effective strategies that will lure you into the process. One of their most successful strategies is bonuses.
Have you noticed how casinos are handing out free money for gambling? Well, these welcome bonuses aren’t exactly free money. You should read the fine print, where, in most cases, people need to deposit some money in order to get these bonuses, and bonuses cannot be withdrawn. meaning that you must play with the money.
So, casinos aren’t exactly giving you $500 (although is sounds like free money), they are giving $500 credit which will be eventually returned to them since there is a higher chance that you won’t win some big money. Even if you do manage to win some money with the bonuses, they now have you as a frequent customer, where you’ll come back every day hoping to get another big win.
In-App Upsells
Casino apps are masters of upselling, nudging you toward pricier options that boost profits. High-roller tables, with $1,000 minimum bets, promise bigger payouts but carry higher risks, increasing the house’s take. VIP programs, offering cashback or exclusive slots, lock in big spenders, who account for 25% of profits despite being just 5% of players.
Apps also push premium features, like side bets in blackjack or “turbo” slots with faster spins, which accelerate losses. Offshore platforms, as noted by sdlccorp.com, often integrate crypto-based high-stake games, attracting whales who drop $10,000 per session. These upsells, seamlessly woven into the app’s interface, turn casual players into high rollers, driving revenue skyward.
Live Dealer Games
Live dealer games, streamed from studios with real croupiers, are a cash cow for real-money apps. Blackjack, roulette, and baccarat tables, with bets from $5 to $5,000, combine the house edge with the allure of a physical casino.
These games have higher operating costs—dealers, cameras, streaming—but their 20% profit margins and massive popularity make up for it, as gambling.com reports. In 2024, live dealer games accounted for 35% of US app revenue, with apps in New Jersey alone pulling in $700 million from them. Players, drawn by the human touch, stay longer and bet more, especially on offshore apps offering 24/7 tables, turning every dealt card into a profit pipeline.
Payment Processing Fees
Every deposit and withdrawal through a real-money app comes with a small sting. Apps charge 1-3% fees on transactions, especially for credit cards or e-wallets like PayPal, while crypto payments (Bitcoin, Ethereum) often carry blockchain fees.
A $100 deposit might cost $2, and a $500 withdrawal could lose $10. With millions of transactions monthly, New Jersey apps processed $10 billion in 2024—these fees add up to hundreds of millions in revenue.
So, yes, casinos have multiple ways of making money, and they seem like have the secret recipe for success. However, starting an online casino requires a significant upfront investment and there are a lot of costs for ads, legal advice, and entering new markets that can eat a significant portion of their revenue.