Are Online Casinos Reliant on High Rollers?
Posted by Harry Kane on Thursday, March 2, 2017
If you imagine the classic, bricks-and-mortar casino, your mind is instantly drawn to the high-rolling, James Bond-type figures who constantly pursue huge wins. This is not an image that is typically synonymous with online casinos, which tend to be far more accessible and open to players of all ages, types and demographics.
According to new research, however, high-rollers are becoming increasingly important to the profitability of online casinos. More specifically, the British Columbia government’s online gambling site earns an estimated 46% of its casino revenue from just 5% of its players. This is a significant statistic, and one that has raised questions both within the marketplace and from external commentators.
Do High-rollers Dominate the Online Casino Market?
Overall, it is clear that the high-rolling demographic remains a key driver of all casino activity across both on and offline platforms. Not only did 5% of players (619 in total) account for 45.9% of all casino wagers on the PlayNow.com website, for example, but the 20% most active participants accounted for 82% of interactions. So while the diversity and themed nature of online games appeals to casual gamers, it is fair to say that this demographic accounts for a very small number of wagers on an annual basis.
If we break these numbers down further, we also see just how prolific high-rollers are in the virtual casino market. These 619 gamblers made an staggering average of 12,594 individual wagers per month, for example, which in turn translates into 420 per day. Amounting to a startling, monthly wager of $66,361 per high-roller, it is easy to see why such numbers have triggered some controversy in the industry and forced some to question whether online brands are doing enough to drive home responsible gambling legislation.
Why These Figures May Be Misleading
Before we jump to conclusions, however, it is important to consider these findings in their true context. Firstly, the study in question drew data from a single platform, meaning that the results may not be indicative of all online casinos.
Even if we assume that this is a widespread and far-reaching trend, however, the figures themselves can be considered as being misleading. After all, it is not unreasonable to assume that such a small demographic of players may have access to large and lavish bank-rolls, as they choose to spend their disposable income on their favourite casino titles. This helps us to appraise the data from an entirely different perspective, while providing reassurance that players are gambling responsibly and within their means.
Finally, it is also interesting to note that slot games accounted for 80% of the casino bets featured as part of the research. These games typically drive a high volume of smaller wagers, creating a seemingly disproportionate number of bets per player. This assertion is supported by the fact that the average, single bet placed by high-rollers in just $6.40, which is a far more reasonable and accessible wager that can be more easily managed.
The Bottom Line
While the headline numbers may be eye-catching, they are not necessarily indicative of online gaming as a whole. The rising dominance of slot gaming also places the numbers in a different context, particularly when you consider the rapid-fire nature of the titles, the frequency (and size) of bets and the typical RTP rate.
Not only this, but it is also important to note that the continued diversification of the online casino space means that casual players are increasing in their number. This is a trend that continue over time, as operators continue to benefit from the attentions of broad, playing demographics.