I thought I would give you some background our decision to cut back on the reload bonuses we have been offering.
Put simply, after we have paid out on customer winnings (and there have been a lot of them recently, so genuinely…well done) , along with game providers fees and other overheads, were simply not making sustainable profits.
Just to give you some idea of the numbers…
- A customer might bet €100.
- Based on the return to player probabilities, they are likely on average to get around 96.5% return of cash.
- That leaves us on average with €3.5
- We then have to account for bonuses and they are typically running at around €3.4
- And we then have game provider fees (paying the companies who provide the games you play) which would typically amount to €1.3 for every hundred euros transacted.
Our plan is to lower the reload bonuses, but still issue a large number of them and double our efforts around site experience and customer services. With all of this done, we are looking to make around 0.75% gross profit (profit before overheads etc)
In the end, our mission is to have a great website that customers love. And to do that we have to make a profit…otherwise no Oshi.
Anyhow, I hope that makes sense and I hope you have learnt something about the tough economics of running a casino.