The Business Model Behind Casinos Videos

Up to 20,000 subscribers and several million video views show that the demand for videos from non GamStop casinos is definitely there. But what is behind the videos? How does the business model work? Do the Youtubers actually finance themselves through the profits they make on the machines?

You don’t have to have seen all of the thousands of videos on YouTube that deal with gambling in non casinos to find the common denominator of the videos: the high win rate. In almost all videos, the impression is given that the bonus rounds are triggered every second. It is usually played on multiple machines (more on why that is later), and there are always wins.

Some videos last an hour or longer. If we extrapolate this, we get really attractive hourly wages. Of course, one wonders why we don’t all earn our money in casinos. Did the video producers actually develop tricks to outsmart the non GamStop casinos?

Many Hours of Play With a Lot of Action at Non GamStop Casinos

Anyone who takes the trouble to watch the videos over the entire runtime will quickly realize that the action sequences, in which bonus rounds, free spins and big wins can be seen, are cut together. So the producers’ film for many hours in order to have enough material for an action-packed video that is brimming with profits. If you then correctly set these sequences to music, you quickly give the viewer the impression that the “system” played actually works.

Typically, the videos do not indicate how many hours of footage went into producing the finished video. It is also very clear why: the producers want to give the impression that they offer a “profit strategy” and generate clicks and views in this way. This in turn, increases advertising revenue. Revenue is not only generated through advertising but also through affiliate marketing. Because under many videos, you will find registration links for casinos. If you register via these links, the video producer also earns.

The veracity of the Non GamStop Casinos Videos

Advertising revenue and affiliate links? So far, the business model is certainly not reprehensible. These YouTube channels can also be financed by iGaming commissions. Therefore, the attempt to attract as much attention as possible to the content is understandable. As long as the content is honest, that’s okay. At the moment when the viewer is deliberately deceived, we consider the procedure to be very questionable.

Therefore, at this point, we want to take a critical look at the true content of what is shown. In order to be able to assess the authenticity of the videos, you certainly have to deal with the legal situation of the casinos.

How High are the Chances of Real Winning?

In the past, there was a legal regulation in the UK that slot machines had to achieve a payout rate of at least 60%. In recent years there has been an amendment to the protection of minors and players, as well as the gaming ordinance. So, this minimum payout limit no longer applies. Rather, it was stipulated by law that the slot machines must have a loss and profit limit. In concrete terms, this means that the loss per hour (the stake that exceeds the winnings) is limited to 80 euros (even to 60 euros for new machines). The profit per hour (after deducting the stakes) must not be higher than 500 euros (400 euros for new machines).

The legal framework alone makes it clear that long-term winning streaks are impossible. But it’s not just that high profits are excluded. Rather, due to the lack of a minimum payout rate, we have to assume that the machine manufacturers will lower the payout rate so that they come as close as possible to the permissible loss per hour. It quickly becomes clear why this is the case when we look at the general conditions of the casinos not on GamStop.

High Fixed Costs for Non GamStop Casinos

The operating costs of a game library are enormous. In addition to room rent, personnel and electricity costs, as well as tax burdens, have to be generated. If you do a little research on the Internet, you will quickly find information about monthly fixed costs of around 50,000 euros per arcade. This sum must be taken every month to cover the running costs. This only succeeds if the players lose regularly. In turn, this is only possible with the lowest possible payout ratios.

So, we can already state at this point that the videos in which one bonus round follows the next are only possible through editing. If we now consider that the videos are sometimes 40 minutes and longer and that primarily winning sequences can be seen during this time, then the Youtubers must have a correspondingly large amount of waste material with losses. Of course, the question arises as to whether the production of the videos can still be economical at all?

Is the Production of the Videos Economical?

If we take the previously gained knowledge as a basis, then it can be assumed that the production of a video will require several hundred euros of investment, most of which will then probably be lost. If, in contrast, we now compare the possible income of a YouTube channel, it quickly becomes clear that the production of the videos can hardly be economically viable.

Based on the user numbers of the two most successful YouTube non GamStop casino channels, we made a rough calculation of the advertising revenue.

Corresponding calculators are freely accessible on the Internet. To put it very simply, the number of video views is adjusted by the “adblocker” factor and then multiplied by a “cost-per-impression” factor. This results in calculated monthly income – for the big channels, this should be in the range of €1,000 – €4,000.

If we now look at the number of videos that the channels publish and what they then probably “cost”, it quickly becomes clear that the non GamStop casinos’ videos can hardly be economical. At best, the big channels can act economically.