Brick-and-mortar casino is a business.
Online casino is a business.
Mobile casino is a business.
One of these three is not a casino. If you said it’s the last one, you are correct.
Not to take anything away from it. The way things are going, I would not be surprised one bit if mobile casinos would overtake real casinos in revenue.
So, what kind of a business is a mobile casino?
A good one.
How Mobile Casinos Work
Google Play, Apple Store, Facebook neither of those platforms allow real money gambling. So, the mobile casinos have built a proverbial Las Vegas out of small in-app purchases for virtual coins.
Not Bitcoin, which is virtual, but also very real. No. Virtual as in fake, worthless, game currency.
On most apps, in-game purchases range from $1 to $200, but rack up hundreds of millions of dollars in profits for the app owners.
You have to admit, it’s kind of amazing. And it gets even better.
No Fail Business
There is a lot that can go wrong for any business. But given the nature of the business that is mobile casinos, it’s pretty safe to call them fail-free.
Like I said in the introduction, it’s not a casino. It is an entertainment app that has casino-like games. Meaning that it doesn’t need a license to operate, to check with third-party auditors about game fairness, etc.
A casino MUST have all of that. Despite the loopholes, even minor deviations from payout ratios or unlawful operations could be catastrophic for the business.
Worth the Investment?
There are already massive networks that hold the vast majority of the market share.
It would appear that owning one 100-million-player app is an unmatched success, right? But Playtika, the operator of the hit app Slotomania, is also the owner of WSOP, House of Fun, Caesar’s Casino and a couple of more apps that are rising in popularity.
What does it mean for investors?
The market has been stabilized now, so you’re safe from big swings. But making money with a new app can be extremely hard.
It is worth looking at opportunities, for sure. Just be careful with unestablished, stand-alone apps. On the other hand, if you get one right in the early stages, you’d be set.