How Do Casino Streaming Channels Make Money?
Casino streaming channels provide some of the best and fun means of discovering the newest slot and live casino games. However, providing this service comes at a cost to these streamers. So, how exactly do they generate any sort of income so they can cover their running costs and still make a profit? Let’s dive in.
Casino Affiliate Revenue
Most casino streamers make the greater part of their revenue from casino affiliate income. Viewers on Twitch will be persuaded by streamers to sign up with some particular casinos with special codes, or directed (Twitch and YouTube users) to a different website where they can see the recommended casinos from that streamer. Other times, giveaways are introduced to boost sign-up rates. Through the use of web tracking cookies, a streamer gets some financial rewards when a viewer deposits some money at a recommended casino. Also, there could be an arrangement where the streamer gets a fixed one-off payment when a user deposits cash for the first time or a revenue-sharing agreement that sees the streamer getting a cut every time a player loses.
Casino Streamers Patreon Subscriptions
The Patreon model was the in-thing during the early stages of the slot streaming era (circa 2016), however, it has lost its popularity in recent years with the increasing commercialization of the industry. With the Patreon platform, streamer fans can support their favourite channels with token amounts in monthly financial donations. Fans who donate the highest amounts get access to premium content.
With Twitch, streamers can collect $5/month as channel subscriptions. This gives dedicated followers access to premium content. However, 50% of the subscription fee from every subscriber ($2.50 or £1.94) goes back to the streamer channel. Even though it is not a lot of money, it can be useful for meeting essential needs like a screen or a video camera.
Just like with any other successful business, branding is important, and smart casino streamers understand this. So, they have turned selling branded merchandise to fans into an income-generating stream. And with the involvement of e-commerce sites like streamelelements.com, fans can buy t-shirts, baseball caps, hoodies, and mugs, thereby helping to create and build brand awareness while the streamer makes some profit.
Adverts on YouTube and Twitch
Preroll adverts are those ads that play before the actual video you want to watch on either YouTube or Twitch comes on. They usually carry a ‘Skip Ad after 3 seconds’ message. These ads contribute a sizeable share of the income made by Twitch and YouTube. A portion of the income is shared with the channel that features the preroll ads. On YouTube, only channels with 10,000 or more subscribers get a share of this income.
Casino Direct Investments
Casinos may decide to make direct investments in a streamer or group of streamers. This happens in exceptional situations, like in early 2018, when the LeoVegas group bought controlling shares in Casino Grounds for about £2.7m. The deal, apart from making LeoVegas’ flagship brand the number-one-rated casino on the Casino Grounds website, also allows LeoVegas to get a cut of the affiliate revenue paid out by rival operators to Casino Ground streamers.
Casino Sponsorship Deals
This business model is similar to the affiliate model. It involves a streamer signing a sponsorship deal with a casino where players play slots exclusively. Most of the advertising will be targeted around encouraging viewers to open an account with the casino. Therefore, if you notice that a streamer recommends just one casino every time, chances are that they signed a sponsorship deal with the casino.
Casino Streaming Channel Operating Costs
It is obvious that casino streaming generates a lot of revenue, however, we need to consider the running costs incurred by streamers.
At the initial stages, the major cost will be time. A lot of time will be spent making and editing videos of slots spinning. Then more time needs to be dedicated to ensuring that the YouTube and Twitch algorithms get to notice the new streaming channel. This can be a lengthy and arduous process that is not certain to succeed.
At the start of a streamer’s career, all they’ll be doing is broadcasting to a small audience without making any appreciable income. Coupled with the fact that they lose money over time. Definitely, the random huge wins will ensure streamers stay in the game for a bit longer, however, a lot of streamers have to frequently boost their account balance with an injection of fresh funds.
If all of the different income streams mentioned earlier don’t cover all these expenses, then the business model becomes unsustainable, long term. You need to think about the unending audience demands for risky action and high stakes that can result in a severe funding problem for streamers that don’t have a lot of capital. And even though some casinos may help out with unlimited reload bonuses to their number one streamers, the streamer’s fan base will most likely kick against this if they get to know. It’s a high-risk business and not all streamers will survive.
The most crucial part of a casino streamer’s sojourn into the business world of casino streaming is at the initial stages. This is the stage where it’s very easy for a streamer to run out of funds before they even get started.
The encouraging thing is that a lot of today’s biggest and most entertaining streamers started out with only a few subscribers and now they are well known with a lot of subscribers and sponsorship deals.
So, new streamers must come up with innovative ways of catching their audiences early, either by exploring new avenues in the slot streaming arena or simply by a dint of personality or charisma.
Besides, there are various funding sources open to casino streamers. The major business goal of any smart streamer is to make sure that these income streams are adequate to cover the cost of time and playing slots. It is only when this is achieved that they can be assured of making profits.
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