How Do Bingo Sites Make Money

Bingo sites make money by collecting a portion of the bets placed by the players. This portion is called the gross gambling yield (GGY), which is the amount retained by operators after the payment of winnings but before the deduction of the operating costs. Bingo sites also have to pay different types of gambling duties to the government, depending on their location and type of service.

In the United Kingdom, Bingo generated nearly 500 million British pounds in revenue from April 2021 to March 2022. Main-stage bingo accounted for the highest share in revenue, amounting to 307.83 million British pounds. Bingo also generated almost GBP 388.63 in GGY in March 2022. The remote casino sector generated the highest GGY in that period.

Gross Gambling Yield (GGY)

Gross gambling yield (GGY) is a term that describes the amount of money that gambling operators keep after paying out winnings to their customers. It is calculated by subtracting the total amount of payouts from the total amount of bets placed by the players. GGY does not include the operating costs of the gambling business, such as staff wages, taxes, marketing, etc.

For example, if a bingo site receives £1000 in bets from its customers and pays out £800 in prizes, its GGY is £200. This means that the bingo site keeps 20% of the money wagered by its customers. However, this does not mean that the bingo site makes a profit of £200, as it still has to pay for its expenses.

GGY is a helpful measure of the size and performance of the gambling industry in different sectors and regions. It is also used by some authorities to determine the amount of gambling duties that operators have to pay. Industry statistics often use GGY, too.

Other revenue streams

Besides the fees collected from players’ bets, online bingo operators may have a few additional revenue streams, though these are minor and pale compared to GGY. Some income streams can include:

  • Advertising: Bingo sites may display ads from third-party advertisers on their websites or apps and earn money from clicks or impressions. They may also promote their own products or services through ads on other platforms or media outlets.
  • Sponsorship: Bingo sites may partner with other brands or organizations to sponsor specific events, games, prizes, or features on their platforms. They may receive money or other benefits from the sponsors in exchange for exposure and promotion.
  • Affiliate marketing: Bingo sites may join affiliate programs that allow them to earn commissions from referring customers to other websites or products. They may use links, banners, or other tools to direct traffic to the affiliate partners and earn a percentage of the sales generated.
  • Merchandising: Bingo sites may sell their own branded merchandise, such as clothing, accessories, mugs, etc., to their customers or fans. They may also sell digital goods that can be used on their platforms or games, such as virtual items, tokens, or credits.
  • Subscription: Bingo sites may offer premium or exclusive services or features to players who pay a monthly or annual fee. These may include access to more games, higher jackpots, faster withdrawals, loyalty rewards, etc.
  • Donation: Bingo sites may accept voluntary donations from their customers or supporters who want to show their appreciation or support for their platforms or causes. They may use platforms such as Patreon, PayPal, or GoFundMe to collect donations and offer incentives or perks to the donors.

How does online bingo revenue compare to other online gambling sectors?

Online bingo is a relatively small but growing sector of the online gambling industry in the UK.

According to official statistics, online bingo generated £176.8 million in gross gambling yield (GGY) from April 2019 to March 2020, a 12.5% increase from the previous year. Online bingo accounted for 3.1% of the total online gambling GGY of £5.7 billion in the same period. A report by Xace estimates that online bingo GGY was £198.8 million in 2020, which was a 29.9% increase from 2019. Online bingo accounted for 3.5% of the total online gambling GGY of £5.7 billion in 2020.

Online casino games, especially slots, dominate the online gambling sector, generating £3.2 billion in GGY in 2020, which was 56.2% of the total online gambling GGY.

What are the factors that affect online bingo revenue?

For the most part, online bingo revenue gets affected by the following factors:

  • The number and popularity of online bingo sites and games available to players
  • The level of competition and innovation among online bingo operators and software providers
  • The preferences and behaviours of online bingo players, such as their frequency, duration, and spending patterns of playing online bingo
  • The regulatory and legal environment of online gambling in different countries and regions
  • The economic and social conditions that influence the demand and supply of online gambling services
  • The impact of external events, such as the COVID-19 pandemic and the Russia-Ukraine war, on the online gambling industry and consumer behaviour

Obviously, other factors that are directly under the bingo operator’s control have a massive effect on their topline. For instance, marketing campaigns, big Bingo jackpots, and the quality of their product would affect new player acquisition and retention.

Future prospects for Bingo in the UK

Online bingo operators can adapt to the changes in consumer behaviour by:

  • Offering a variety of online bingo games and formats that cater to different preferences and tastes of players
  • Providing a safe, secure, and fair online gambling environment that complies with the relevant regulations and standards
  • Enhancing the social and interactive aspects of online bingo, such as chat rooms, community features, and social media integration
  • Developing innovative and attractive marketing and promotional strategies that appeal to new and existing players
  • Providing responsible gambling tools and information that help players gamble safely and responsibly
  • Monitoring and evaluating the online gambling market trends and consumer feedback to improve their products and services

In conclusion, online bingo is a growing sector of the online gambling industry, with a significant portion of the revenue generated through gross gambling yield. While online bingo is a relatively small sector compared to online casino games, it is still popular among players, especially with Britis in the UK. Online bingo is poised for continued growth and success in the coming years.

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