Crypto Casino
Torrent Gear
How the casino actually makes money from players
The sustainability of casino revenues is not magic or "tweaks," but a combination of the mathematics of games, the pace of rounds, product design, marketing and financial discipline. Below is a complete analysis of the "revenue machine": from the rate to the P&L report.
1) Revenue basis: edge and "game speed"
The advantage of the house (house edge) is laid down in the rules of each game. At a distance, the casino keeps a share of the bet turnover. But the small edge only becomes real money thanks to the speed of the game - the number of rounds per hour.
Formula on napkin:- Expected revenue per hour ≈ average rate × rounds/hour × edge.
- Example: 2 € × 500 spins × 4% = 40 € per player per hour (long distance).
Conclusion: the casino does not earn "on one big win," but on the mass turnover and repeatability of rounds.
2) Where exactly edge is hidden: by product type
Slots: edge is formed by a table of symbols and payouts (often the equivalent of RTP 92-97%). A fast pace gives the main contribution to revenue.
Roulette: 2.70% (euro )/5.26% (American) is not the highest edge, but a steady stream of bets.
Blackjack: with "soft" rules, the edge is low (≈0,5 -1%), so the operator strengthens the rules (shuz for 6-8 decks, payout 6:5, mixers) - the margin grows.
Live show: "wheels of luck," bonus sectors and multipliers - a bright pitch at the edge higher than that of classic tables.
Poker (B2C): income not from the edge, but from the rake (commission from the bank/tournament).
Sports: Whig/Overvig in coefficients (sum of probabilities> 100%) + risk management of lines.
3) GGR, NGR, Hold: the language of money
GGR (Gross Gaming Revenue) = bets − wins. This is "dirty" income before bonuses/taxes/operating expenses.
NGR (Net Gaming Revenue) = GGR − bonuses − jackpot contributions − affiliate payments − turnover taxes (if any).
Hold% - the share of deposits/rates held by the operator for the period (= GGR/turnover).
ARPU/ARPPU - average revenue per user/payer.
Conclusion: the operator does not control the player's "wins/losses," but the retention ratios and the cost of attraction.
4) Bonuses and computers: not "gifts," but net margin management
Vager and restrictions translate the bonus into additional turnover, where edge creates income.
Cashback reduces net edge, but increases retention.
VIP programs redistribute margins: high computers pay off for expensive players due to LTV.
Risk: Promo without calculation turns GGR into "paper" revenue and inflates NGR leaks.
5) Jackpots and "total pool": the thick story effect
Progressive jackpots are accumulated from the share of each bet (the contribution reduces NGR here-and-now, but increases conversion and turnover).
Tail risk management: limits on rates/payments, reinsurance (sometimes - insurance contracts for mega-pools).
6) Payment economy: where interest is lost
Payment provider fees, currency exchange, chargebacks - direct pressure on NGR.
Conclusions and limits: the schedule and thresholds reduce payment costs and the risk of fraud, without touching the honesty of the game.
Crypto: Lower fees and faster turnover, but higher AML and volatility requirements.
7) Partners and streamers: who brings traffic
CPA/RevShare/Hybrid: Partners receive a commission from the player's NGR.
Critical: consider the real cost of traffic, taking into account bonus costs, fraud, KYC failures and refunds.
Streaming and influencers grow conversion and "speed of history," but require tight compliance controls.
8) CRM and retention: where LTV is done
Segmentation: by frequency, average check, genre, promo sensitivity.
Life cycle: welcome → activation → first/second depa → regular → VIP/reactivation.
Retention mechanics: minimum default campaigns (dr bonus, weekly cashback), missions/tournaments, personal offers based on behavioral signals.
ML models: outflow prediction, "next best offer," early identification of WG risk (responsible game).
Purpose: to increase the frequency and average turnover in the control of net margin (NGR margin).
9) Product design and UX: how turnover grows without manipulation
Pace: quick rounds, "one click to bet again," quick deposit - more turnover.
Showcase and search: it is easier to find familiar providers/genres - higher conversion to the game.
Gamification: missions, seasonal passes, progress bars - lengthen the arc of engagement.
Honest aesthetics: transparent RTP/volatility, session history, limits - loyalty and lower regulatory risk.
10) Risk and Fraud Management: NGR Protection
Anti-fraud signals: multi-accounts, bonus abuse, abnormal betting patterns.
Sports: limiting "forks," controlling delays and "insiders," risk models by market.
Casino: protection against "corner" betting in live games, tracking equally probable transfer schemes.
KYC/AML: mandatory costs, but reducing fines and chargebacks - maintaining NGR.
11) Unit Economics: CAC vs LTV
CAC (cost of attraction) includes media, partners, launch bonuses, KYC-file.
LTV depends on the frequency × average turnover of × edge − bonuses − payment commissions − partner.
Survival rule: LTV/CAC> 3 on 6-12 month horizon with positive operational cash-flow.
12) Offline vs online: different P&L structures
Land casinos: CAPEX (real estate, hall, equipment), OPEX (personnel, security, food, show), local taxes, tourism share.
Online: CAPEX is lower, but a high share of provider deductions, hosting/CDN, payments, marketing/partners, licenses and taxation GGR/NGR.
13) Responsible gambling: why it's profitable
Early detection of risk reduces charge-offs and losses from problem behavior (disputes/blockages/fines).
Limits and pauses lengthen the "healthy" life cycle, reduce churn due to emotional "breakdowns."
Reputation and licenses = access to payment channels, advertising inventory and sustainable traffic.
14) Myths about "rolling" and reality
Myth: "The casino makes money when it tweaks the RNG."
Reality: revenue is built on edge and turnover; RNG manipulation = end of license and business.
Myth: "Bonuses are free money to the player."
Reality: this is a tool to increase turnover while controlling net margin.
Myth: "VIPs decide everything."
Reality: Whales are important, but diversifying the mass segment reduces the risk of revenue volatility.
15) Mini margin calculator (example online slot)
Average rate: €1.50
Rounds/hour: 550
RTP: 96% (edge 4%)
GGR/hour/player: 1.50 × 550 × 4% = €33
Cons: provider 10% GGR (3.30 €), payments 2% deposit (~ 0.66 €), bonus value 0.8 € → NGR/h ≈ 28.2 € before marketing and general expenses.
(The numbers are illustrative: each operator has its own mathematics.)
16) Test questions for the operator (and the curious reader)
1. What is the mix of products and their actual hold% by segment?
2. Where are the NGR leaks: bonuses, partner, payments, fraud?
3. What is the speed of the game and how does UX affect turnover without manipulation?
4. How does the risk management of jackpots and "tails" work?
5. What does CRM do to retain without growing toxic revenue?
6. What is the LTV/CAC by channel, and where is the payback point?
The casino makes money on predictable mathematics (edge) multiplied by the speed and frequency of rounds, and on the operational discipline: the right product mix, reasonable bonuses, accurate CRM, partners, payment efficiency and a tough risk contour. Responsible play brings long-term stability: it reduces regulatory/reputational risks and prolongs the customer's life cycle. It is this balance - mathematics, design and ethics - that turns the game for the player into controlled entertainment, and for the operator - into a predictable business.