Technological developments haven’t only boosted the growth of online casinos but also brought about new models of monetization.
When we think of casinos, we think of money wagers on traditional games where the house has a slight edge.
But in 2024, there are not only modern games that more closely resemble the mechanics of video games, but also playing them for no money.
This is a service that was not possible in traditional casinos, but with web-based casinos, it’s an experiment that was easy to run.
Casinos for real money in Australia and Vegas still exist, of course, but they now have a new form of competition. This brings up one obvious question, which is, how do free-to-play casinos make money?
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How Free-to-play Casinos Operate
Free-to-play has become a big movement in video games. Many people would point to Fortnite as a catalyst for the trend, as it proved to be extremely successful and profitable.
Free-to-play casinos aren’t any different, and they have begun adopting similar forms of marketing and monetization.
Everybody enjoys free things, so getting people in the door isn’t the main pain point for these casinos.
Instead, it’s extracting value out of these customers, and this can either be done through their wallet (freemium or non-mandatory microtransactions, somewhat like Fortnite’s Battle Pass), or through their attention (adverts).
Many free-to-play casinos implement microtransactions such as virtual currency, limiting their gameplay (which can be extended by paying for extra spins), VIP memberships (daily bonuses, exclusive access to games), and through things like power-ups.
Whilst these are effective, they can pose two main concerns. Firstly, the primary motivation of sign-ups is because the service was free, so they’re already averse to handing over money. Secondly, frequent attempts to ask them for money or limit their gameplay can risk losing their attention. So, we will focus narrowly on the marketing methods that can be employed.
Banner Ads
Banner adverts are images that are situated in places like the header or sidebar of a website. These remain at the fringes, meaning they’re unintrusive but often ignored by users.
As a result, the real estate you’re offering for rent is quite low, unless you’re paid per click, in which case this can be quite high (but still limited by the low engagement). However, they remain a staple for most casinos, as they’re seen as low-risk passive revenue.
Impact on User Experience
Banner ads are proven to be ignored by masses of people as they’ve become white noise over the years.
This doesn’t mean that they do not cause visual clutter, but nevertheless, they do not get in the way. This is an important distinction between UI and UX; the former is aesthetic, whilst the latter is functional.
Interstitial Ads
Interstitial adverts are full-screen adverts as opposed to lying on the fringes. However, they’re not always as intrusive as they sound as they can be made to look seamless, and only appear during loading screens (even if the loading screens are artificially created for the advert’s purpose, the user is unbeknownst.)
Due to their full-screen nature, these adverts are much more engaging. They’re difficult to miss, meaning pretty much everyone shown creates an impression.
Some may also cause an accidental click too, which will often take the customer away from the website in a new tab. These can bring in more revenue than banner ads due to this increased engagement.
Impact on User Experience
These are a lot more intrusive than banner adverts. Though, paradoxically, they create less clutter. When done right, these can be both lucrative and engaging, though there is always the risk of customers finding the full-screen nature as obnoxious.
Sponsorships
Going back to the Fortnite example, the introduction of trademarked superheroes as in-game characters represented genius sponsorship, as the film studios paid for “product” placement, but they integrated very well into the game itself.
Casino sponsorships aren’t quite as sophisticated yet, but they can be a lucrative way to monetise without needing to throw explicit adverts at the customer.
An example might be to integrate a brand into a game. For example, instead of having an Egyptian pyramid slots game, it could be “Indiana Jones’ Adventure Slots”, where the game’s theme is set around Indiana Jones.
However, this may be an ambitious example, as Walt Disney may think the casino should be the one paying to use the name.
This means a balance needs to be struck, where the brand gets a lot of value out of the deal. Sponsoring events is also a possibility, and so is striking a partnership with game developers (i.e. a casino exclusively uses their games and no others, perhaps creating a discount for the casino’s usage of the games).
Impact on User Experience
The impact on user experience can vary depending on the relevancy of the sponsorship. When done right, the impact can be big… But for all the right reasons, as it may entice them to play a game because of a brand they’re familiar with.
Final Thought
There are several ways to leverage different marketing models for a free-to-play casino. Careful consideration of the audience is needed, such as their interests and tolerance to marketing.
Some of the most covert and non-invasive forms of monetization happen to be the most lucrative. Static banners are seen as dated, but can still bring in a passive income. Generally, a balance between models is seen as the best approach.
