Specialists of the CASEXE company will talk about the main factors that confirm the status of the modern gambling business. From us, you will also learn why operators should implement KPI metrics and what is so useful about them.
We offer such a service as the creation of a gambling platform with a guarantee of quick payback and stable profitability.
They reflect and evaluate how successful the strategy chosen by the company is. The analysis can be conducted both for the whole enterprise and within individual areas.
The indicator’s calculation is based on the BSC system. This is the most popular method used by banking organisations, insurance companies, venture funds, and other firms whose work involves big money turnover.
The history of metrics for performance evaluation has deep roots. American scientist Peter Drucker was one of the first to describe the features and advantages of KPIs in business. The practical application of the system was also studied by J. Malo, K. Roberts, L. Meisel, P. Adams, and other economists.
With the development of gambling, entrepreneurs are increasingly focusing on these parameters. They allow project owners to conduct a quick and qualitative study of online casino activities, estimate ROI, return on marketing promotion costs, etc.
The choice of KPIs for a particular brand is based on SMART criteria:
The company’s growth depends on the correct selection of the course. However, there are even more aspects, such as timely tracking and monitoring of intermediate and final results of the iGaming platform’s activity.
The KPI system provides specific figures isolated from a variety of other data. They allow operators to quickly and accurately analyse the current state of their companies, thus helping them to choose priorities for the future.
Let us consider why gambling brands should focus on such metrics:
This group of indicators gives a complete picture of the current state of affairs at the enterprise: the size of gross and net income, return on investment, liquidity, etc.
This is the total amount of all bets placed by customers minus their major wins and jackpots received. The figure is calculated for the day, week, month, quarter, or year. It serves as the basis for analysing the success of a startup and calculating taxes, licensing fees, as well as duties.
Using the metrics, analysts estimate the industry’s capacity in the country as a whole.
Thus, in 2006, in the United States, it reached a record $90 billion. This amount included the income of the managers of land-based casinos, bookmakers’ offices, and poker rooms.
In 2023, the leading position in terms of the GGR was occupied by Malta. According to Statista, the operating revenue is estimated at $410.9 million, which is 11% of the country's GDP.
Forecasts for the size of deductions to the treasury are based on planned gross gaming revenue indicators. In most states where gambling is legalised, entrepreneurs pay a tax on the turnover, from 3% to 20%, depending on the jurisdiction and type of licence.
Thanks to the indicator, iGaming project owners can get an idea of:
The size of GGR is affected by what solutions (slots, cards, and arcades) are presented on the website. Content with a low RTP (up to 94%) brings huge profits to online casinos. However, it is not recommended to completely abandon slot machines with high return rates. Otherwise gamblers can quickly lose interest and go to competitors.
It shows the real amount of money in the online casino, which remains after the payout of prizes and carrying out calculations with all counterparties.
The indicator is GGR minus the following basic expenses:
The parameter clearly demonstrates the expenditure side of the company’s budget and how efficiently the funds are spent.
At the start of work, entrepreneurs can theoretically go lower due to the huge costs of launching an iGaming portal. Further, as the project develops, NGR should gradually increase. This shows the correctness of the chosen business strategy and the rational allocation of the brand’s budget.
Knowing the figure, 2 more metrics can be calculated:
The metric helps to calculate the ROI for an iGaming project and evaluate the effectiveness of the funds spent.
In this case, the formula is quite simple. The difference between income and expenses for launching a virtual casino is divided by the total costs and then multiplied by 100%.
For gambling, anything more than 100% is a good indicator. It means that the startup is profitable, and the investors’ efforts are paying off.
It is important to remember that ROI cannot be considered without interrelation with the other key metrics (GGR and NGR).
To see the dynamics, payback should be analysed in the context of several reporting periods (months or quarters).
Smooth growth in the return on investment (for example, an increase of 4% every 12 weeks) shows that the company is on the right track: it competently manages the assets and maintains a balance between income and expenses.
In gambling, advertising KPIs are used with enviable frequency. This is explained by the fact that the industry, more than other sectors of the economy, depends on the chosen strategy for attracting and retaining customers. If operators make some mistakes at this stage, users will go to competitors, and the online casino will suffer losses.
This is the percentage of players (of all visitors to the platform) who made the desired action.
Internet traffic CR is divided into several groups:
The last type of conversion is the most valuable for online casinos. Therefore, the main part of advertising campaigns is built with an emphasis on replenishing your account on the site. Only after this, the gamer receives bonuses, most often with a wagering requirement.
The metric shows how much it is necessary to pay for the acquisition of one gambler who made the first deposit.
This parameter is often used in affiliate marketing to settle accounts with partners using the CPA model. Entrepreneurs transfer funds to the webmaster (a fixed price for each new online casino visitor).
Owners of iGaming portals are interested in reducing the CPA. A sharp increase in it may be a clue that the marketing strategy is ineffective.
It is calculated for the reporting period (most often, this is one month, and sometimes it can be a year).
ARPU allows project managers to evaluate:
CR is the number of clients to the registered users in general who, for one reason or another, left the website.
An increase in the metric means problems in:
Business owners need to look for weak points in the work of their casinos to understand why customers choose to leave.
The metric demonstrates the feasibility of marketing costs for:
To calculate the parameter, it is necessary to determine the ratio between income and marketing expenses, as well as the total amount of advertising costs.
High ROMI and dynamic growth of the coefficient reflect the success of the chosen promotion strategy. If the figure is low, the company should reconsider and, if possible, reduce advertising costs.
To effectively manage personnel, the HR department uses:
Such a business tool is used to quickly evaluate the effectiveness of a project.
Key features of these parameters:
The CASEXE studio is your reliable partner in the dynamic gambling market.
With our help, you can launch a turnkey platform, a licensed White Label portal, a modern Bitcoin casino, and other projects with guaranteed profitability.
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