How good of a business is the "Crypto Casino" business?

[sizzleplussteak]

Hey all!

I am an avid student of business, and a long-time bitcoin holder.  One thing I have noticed on this forum and in the bitcoin community more broadly is the presence of many "Bitcoin Casinos."  (I'm including all crypto here; not just bitcoin.)  Many, though not all, seem to be provably fair.

I'm curious to know -- how good of a business are these casinos?  I'd really love to hear from folks who have actually run or experimented with such sites! 

Here are some initial thoughts and questions that strike me:

* It seems that there are a number of these businesses; how does one get a competitive advantage over others?
* It seems like switching costs for the user are pretty low.  Combining this with the above makes me wonder how challenging they are together. 
* Are there network effects with these businesses?  In other words, does it matter how many other people are playing at the casino I am playing at?  (If I'm playing against the house.)
* At what volume does it actually make sense to run one of these?   (I'm sure this is a context-dependent answer - would love to hear perspectives!)
* I see a number of scripts available for sale.  Does anyone in the business actual buy these, or do people just do their own custom development?

Thanks in advance for insights and opinions!

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[BQ]

I might not contribute much to your question but, I'd like to point out that buying scripts for any type of "business", be it Crypto Casino or any other type of internet site, in an already over-saturated market, is a poor choice! it's both a waste of money and time, if you're not capable of creating one/finding the people to create it from scratch (and therefore be able to compete with those who do), it's very likely going to end up dead very quickly! I would suggest trying to both combine the already existing "casino" ideas with some new type of idea (not every type of casino game is available), and therefore you're both unique and with a functioning site.

[teamspike911]

Well ... casino in principle profitable business ... due to this much where prohibited. And yes, I did not think about it, but most likely it would really be good to try it .. casino with blockchain technology. Great)

[burky156]

Well ... casino in principle profitable business ... due to this much where prohibited. And yes, I did not think about it, but most likely it would really be good to try it .. casino with blockchain technology. Great)

Totally agree with you. Casino and blockchain technology together, very good idea. Casino market has billions dollars market in all over the world. Also you can go with the betting, also billions of dollars in there too. There are many projects and ICO's about casinos and betting but nearly all of them were unsuccesful.. We need bigger and stronger ICO about it..

[demenBTC]

Bitcoin casino business or others are basically the same, all require spiculation of thought, profits and losses must exist and that is needed in people who like all casinos

[Parodium]

Well the fact there are so many of them is evidence enough that they succeed. However, right now there are just a few big players that are pretty much running the game right now, such as Nitrogen Sports, Lucky Games, Stake etc. Unless you have really deep pockets, it’s not likely you will be able to achieve the same scale as these guys.

[mk4]

I'm just going to answer based on my opinions and on what I know. Note: I could be wrong with some.

* It seems that there are a number of these businesses; how does one get a competitive advantage over others?

This probably the most relevant part. Pretty much the only way for people to choose you over the others is that you should have something that you do a lot better compared to others, may it be better user interface/user experience, probably a faster web server, better features, original features(that other casinos don't have), decent fees, etc.

* It seems like switching costs for the user are pretty low.  Combining this with the above makes me wonder how challenging they are together.  

Pretty much, especially for most(if not all) crypto casinos as KYC is mostly not required. Switching is as simple as withdrawing their funds to another casino. So chances are, crypto casinos as definitely very very competitive. If you're planning on competing, make sure you have something that's a deal breaker for you to at least have a chance to attract/steal the users from other casinos.

* Are there network effects with these businesses?  In other words, does it matter how many other people are playing at the casino I am playing at?  (If I'm playing against the house.)

Most likely(for the Casino's side though).  For the end user though, probably not unless you're playing poker or something, whereas other players are needed.

Casinos make money mostly from their cuts and because the odds are in their favor; if we're talking about stuff like dice games whereas the chances of winning are something like 49.5%, they definitely need more volume to have higher chances of profit.

* At what volume does it actually make sense to run one of these?   (I'm sure this is a context-dependent answer - would love to hear perspectives!)

Probably depends on how much profit you're expecting/aiming.

* I see a number of scripts available for sale.  Does anyone in the business actual buy these, or do people just do their own custom development?

Probably for the smaller casinos. If you want specific features though, you probably might want to start from scratch or at least heavily rewrite some parts of the code as there might be some conflicts/limitations with those scripts that are being sold.

[BrewMaster]

well there are casinos that are nearly as old as bitcoin like PrimeDice so the business must be good for them that they could stay  around this long and still have lots of players.
basically i believe the nature of gambling and the fact that the house always wins will always be in favor of these casinos and on top of that bitcoin and using it to bet is so easy and addictive that they will always have players.

a new business however will not be as lucky because they market is already filled with gambling sites, specially dice sites. and the other games have not been as successful anyways. it is not impossible but it will require some extraordinary design and very competitive rates such as lower house edge. and finally lots of advertisement.

[fortresscoin]

Even with by offering a niche market, seems that it’s not so much what you offer, but where your SEO ranking is.  Forget Google.  Even a search on bitcointalk about gambling or betting or whatever leads you to this forum’s own Gambling section.  Visit there to get more business ideas. 

[mk4]

Even with by offering a niche market, seems that it’s not so much what you offer, but where your SEO ranking is.  Forget Google.  Even a search on bitcointalk about gambling or betting or whatever leads you to this forum’s own Gambling section.  Visit there to get more business ideas. 

SEO ranking is a big factor no doubt, but it's definitely NOT everything. A certain gambling site can be the #1 on all search engines but the end users can still look for alternatives if they didn't like the first site on the result list.

[Kprawn]

* I see a number of scripts available for sale.  Does anyone in the business actual buy these, or do people just do their own custom development?

Thanks in advance for insights and opinions!

Ok, I do not have time now to answer all your questions, but I want to respond on this one. You should be very careful with

these gambling scripts that are for sale. A bad actor can sell you a script with hidden exploits and backdoors to steal your

Bitcoin "Purse". Developing the software from scratch is very expensive and you need some programming knowledge or

someone with programming knowledge to analyse the source code for you, to see if there is any exploits in the code. This

business is very competitive, so be very cautious. 

[vit05]

This is undoubtedly the best case of use for cryptocurrencies. All the competitors who have enormous advantages in the case of coffee, lose of  when the subject is casino.

And those competitors are fiat, credit cards, paypal etc.

None of them have the quality, speed, anonymity and overall liquidity offered by Bitcoin and its counterparts. It is much simpler to use. In addition, in the original proposal of the Satoshi had the possibility to integrate a game of poker in the software. In addition, the casinos have the possibility to capitalize directly with investors through the securities.

[portalufonet]

Even with by offering a niche market, seems that it’s not so much what you offer, but where your SEO ranking is.  Forget Google.  Even a search on bitcointalk about gambling or betting or whatever leads you to this forum’s own Gambling section.  Visit there to get more business ideas. 

SEO ranking is a big factor no doubt, but it's definitely NOT everything. A certain gambling site can be the #1 on all search engines but the end users can still look for alternatives if they didn't like the first site on the result list.

Online gambling is a great investment for those who have a lot of capital because the profit that it can bring is enormous. I would very much like online gambling websites to seriously carry out their tax duties to benefit their country.

[crzy]

Well ... casino in principle profitable business ... due to this much where prohibited. And yes, I did not think about it, but most likely it would really be good to try it .. casino with blockchain technology. Great)

This is a real profitable business since casinos always win the game, and a lot of people are addict in gambling. Though it requires a lot of documents/requirements before you operate legally but its ok as long as you are serious about making good business its easy to have that papers. Not all crypto gambling site is good or last for more years since not all of them are offering great services that gamblers wants to experience.

[mk4]

Even with by offering a niche market, seems that it’s not so much what you offer, but where your SEO ranking is.  Forget Google.  Even a search on bitcointalk about gambling or betting or whatever leads you to this forum’s own Gambling section.  Visit there to get more business ideas. 

SEO ranking is a big factor no doubt, but it's definitely NOT everything. A certain gambling site can be the #1 on all search engines but the end users can still look for alternatives if they didn't like the first site on the result list.

Online gambling is a great investment for those who have a lot of capital because the profit that it can bring is enormous. I would very much like online gambling websites to seriously carry out their tax duties to benefit their country.

Capital isn't the only requirement here. Having your own gambling site alone is not going to be enough to enough due to the high competitiveness of this niche. You'd have to be a genius to have a good chance of winning against the others.

[hermankoles]

Crypto gambling is one that can bring huge profits to gambling owners because it is very effective in doing this, without the need for gambling, workers and other infrastructure. everything is done online and this is more effective and directly generates high anunymous levels when using crypto

[chris200x9]

Crypto gambling is one that can bring huge profits to gambling owners because it is very effective in doing this, without the need for gambling, workers and other infrastructure. everything is done online and this is more effective and directly generates high anunymous levels when using crypto

It looks like you don't even have an idea how the site is maintained because it needs a good team behind any casino to run without any major issues and to reduce downtime due to any attacks. You need to have a very huge backup and running servers and networking need to do at the backend. For us, it is just a web page but for running and maintaining that page without any issue they need to a good team.

Not only that apart from this initial investments, they also need to maintain a good bankroll and need to spend money on promotion and marketing because of a lot of competition in this business these days. If one can manage all these things properly then surely they can make a profit in the long run.

[farting_shot]

I might not contribute much to your question but, I'd like to point out that buying scripts for any type of "business", be it Crypto Casino or any other type of internet site, in an already over-saturated market, is a poor choice! it's both a waste of money and time, if you're not capable of creating one/finding the people to create it from scratch (and therefore be able to compete with those who do), it's very likely going to end up dead very quickly! I would suggest trying to both combine the already existing "casino" ideas with some new type of idea (not every type of casino game is available), and therefore you're both unique and with a functioning site.

Thanks for this thoughtful response!  I totally see what you mean here, and I agree that this makes sense -- just buying an off-the-shelf thing in a crowded market seems like a potential race to the bottom.  If there is anything you take away, OP, it should be that you need a differentiator.

[shield132]

There is a very high competition in casino business but not so high in crypto casino. But we can proudly say that there are major players which are so competitive that it's very hard to beat them. All you need when you enter in market is Great template, great support and amazing promotions. This last one plays a huge role to attract customers. When others play regularly on top website and then see you offer something exciting and attractive, why not to play on your website? And when I play, as time goes, if I like your website, I won't only play for the sake of promotions but I'll continue playing because I like it, it attracts me and gives me comfort during my gambling.
P.S Don't buy any script, hire devs and keep team.

[hahay]

There are many gamblers in this community and make the casino business in crypto I think it's very promising to get good profits, but it depends on how and how well you manage the website, because so far there are some gambling websites in the world crypto close and some sell scripts they are at a price that you can still reach (affordable), but still more gambling websites that still survive for a long time from the beginning to stand up until now still survive. So in my opinion the crypto casino business will be very profitable with good management too.