Bitcoin Forum

I've been wondering how much profit these sites make because 1% house edge is pretty low

usually gambling sites that aren't investor based don't share the exact numbers with the public , but they for sure are making a lot especially Primedice ans Stake

you can estimate how much they make by taking 1% of the daily wagered , so if the volume in primedice like 1000 btc wagered a day that means they are making around 10 btc a day

Gambling websites have a steady income, that depends on their overall betting volume as SyGambler said.

But given this is crypto, there is another parameter to take in consideration : the time when the coins gathered as profit are sold.
Knowing how bitcoin behaves, I would only sell a piece of the profit and keep the rest to sell at all time highs.

It is actually difficult to give you a precise answer here, as it depends on the volume that is played on a certain day on some days people splurge and on days they're miser and they don't play.

Then again you could say these days it depends on the fluctuations they play more or less, plus you should consider their expenses to, software updates, salary to be paid, bonus giveaway.

My assumption is anywhere between 4 - 8 btc per day to be precise.

Hmmm, any idea about Stake and DuckDice? not in dollar value but just figuring out BTC profits would be enough, they both average around 200 users online

Checkout dicesites.com they have information on all the established sites that have public stats

Potential income would always vary on how popular the site is and being said above by SyGambler usually gambling sites do get commonly 1% on total wager of particular day which means no matter how small or big on numbers on that day they would always took that profit which supposed to be a big amount when we do talk about daily basis. 1% on some i dont have any idea for other gambling sites on how much percentage they do get.

Some sites post wagering statistics so you can use that with the house edge to get an estimate of the profits.

However keep in mind this would be accurate if we all traded as robots and not humans.

Pretty sure a large percentage of their gains is people basically martingaling their entire accounts away due to fear and greed.

I have no idea in what fantasy dream world you live, but 1% house edge for online casinos is pretty good!

They pay a very low tax compared to brick and mortar casinos and additionally declare only a small part of the coins they gain.

Stake has also other games with higher house edge.

despite the 1% house edge the sites make way more money,usually
it is due to the fact that the vast majority of the gamblers have a very vague idea about bank management or optimal betting strategies
I have seen some atrociously terribad gamblers who are just destined to lose,without a chance to win the way they are playing
there is a variance,of course,one lucky whale could turn the things upside down profitwise
take bustadice and yahoo,for example *winks at Rhavar

I do not understand why you saying this thing, because I think 1% is prettt huge amount as their earning per day or per month. Let assume it this way, usually their income is based on their wagering amount, so if you can check big site like primedice, stakes and bitsler probably you will see huge amount of wagering here because these is big sites. But if you compare to the new site which has big wagered amount then it must probably fake

1% house edge isn't that low, some sites offers much lower house edge. These sites are making shitload of money specially when we all know that its house which always wins in the long term. So most of the users end in loosing all of their money.
The amount of profit won totally depends on the players loosing their money.

Checkout dicesites.com for more info about almost all of the famous dice sites.

Well i lost many BTC on primedice so i think they make millions of dollars every month :D

Yes this is true but in general most online businesses are actually much less to operate than a physical business.

However when it comes to taxes it's a different story. I have no idea if the major Bitcoin casinos declare every single winning they generate but the taxes should be the same between a online casino or a physical casino.

As long as they operate in the same country then there is no difference in taxation.

For example say Company A sell cell phones locally. And Company B sell cell phones online.

The online company probably has less overhead but its taxed the exact same way as the other company.

It is easier to figure this number out if the site in question has an investment option available.
Someone on the Yolodice ANN thread mentioned this but could only figure out how much the site made in bitcoin per day since the other two alt coins used do not have an investment option available yet. So it is impossible to know how much eth/ltc has been put on to the sites bank roll/investment category.
Because everytime someone wins a substantial amount of btc on the site the sites investment amount goes down.
It is a dynamic page on the site where you can view how much btc has been invested on the site at any given time.

You analogy is wrong. Crypto sites operate worldwide but they only pay tax in tax havens where ridiculously small taxes. Fiat casinos operating worldwide have to pay tax in the countries they accept players from and taxes are much higher. In some regulated countries, they even had to pay a license to operate, and some of those licenses are worth hundreds of thousands. In theory, crypto casinos should be playing the same taxes but until now, governments are turning a blind eye, but I don’t know how long this will last.

This is true with the rest of the business ventures, online gambling does not work like that, most of the gambling sites are registered outside the country and operates at a different location and how do you tax something that is registered else where. These things happen when a government has taken a stance against the business and that can happen with cryptocurrency too, if a government bans it, they will register outside where it is legal and operate in the same country it is banned. This is the world we are living in, so it is hard to know how much they are making unless they revel their profits.

I do understand how your analogy work but in the end online and locally will pay the same taxes. May be what you saw online version, some of the even do not pay tax only pay some fee from the third party. I know what are you trying to say here but developed country always pay their taxes only some that can sell without paying any taxes. But nowadays I seldom see any big company that operate third party reseller that do not add some taxes to the seller

I am pretty sure some of the larger gambling websites, , considering the amount of money they are generating and considering if they have held BTC and hodl for the last year or so, they don't have issues paying taxes.

In general almost all successful business always pay their taxes.

The only people who don't is usually those who end up being tax liabilities because they've blew their capital gains.

Basically what happened with the 2018 Taxes. They owed huge capital gains even though they never cashed out and their investment was worth 10-20% of its peak in 2017, they got put in a bad position.

Hence the reason why BTC kept crashing all the way till tax time in April.

Actually in my country there is still some way not to pay some taxes or may be you do pay for it but not in a real amount. Plus the regulations about paying the taxes on selling things online has not been set the exact percentage on selling things online so they can keep gaining profit without being checked as long as they do not play it too obvious

And for btc taxes, I do not understand how the things going with the taxes but to promise investors for gaining such a huge payout is not a good thing, 10%-20% in btc may be it is still logic but if it is in your currency I do not think it is affordable more over after the crash thing

Gambling sites will not disclose how much they earn but for sure they are earning much that can able to support their business for more years. The gambling sites are the real winner here, because many gamblers who lose their millions of money just to play on their site so basically they make money out of your money.

Well that's how business goes and as a gambling site owner you would really do things which you would really have the edge against into your players. Its not really gambling sites don't disclose their potential earnings on a single day yet you can make your calculation basing on the daily wager. They do get significant percentage over all which means the higher the wager on 24 hours then expect on whats the amount they do gain on which is really big and this thing do also on how popular your site is.

A lot of these types of sites actually let you see (and even invest) in the bank roll, so if you were so inclined you could easily calculate the turnover and net profit per day. However, for many of these sites you also have to consider that the game providers share some of the profit generated from each game, so they probably don't make as much as you think, that's not to say they are completely raking in millions though.

I usually check the graph on https://dicesites.com/graphs under Daily profit to see how these guys are doing, but the casinos listed there are limited. Most sites has to be calculated manually, based on the statistics that they post on the site and we will not know if these stats are being manipulated.

A gambling site like https://www.freebitco.in/ has a lot of stats, so you can work out some of the profits based on their 5% house edge. In this case, you have to take the faucet into account too, because it is an daily expense.  ::)