Revealing the relationship between casinos and video game developers: how they interact and collaborate

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Scripted slot machines have been banned worldwide since 2012. The casinos themselves have since lost the ability to release games for themselves, but have gained a great advertising trump card – they can safely say that they have nothing to do with the development, so their games give away the prizes fairly. Indeed, in modern gambling even 300 casino bonus get programs from the same reputable and licensed producers as the long-established brands on the market. The structure of interaction between providers and online casinos is well established, though there are some differences in the forms of cooperation. 

Principles of cooperation between casinos and developers 

Software has not only an author-developer, but also an owner to whom copyrights and possibilities to earn money on the implementation are transferred. But experienced developers, and not only from the casino and gambling world, have long understood that it is less profitable to sell once than to make a steady profit. Major software producers have abandoned the principle of selling their products on a one-off basis and have switched to a format of subscriptions or percentage payments. Each of these schemes, which are actively used in cooperation with the 1 deposit bonus casino, is worth considering. 

Much in the principle of cooperation depends on the level and credibility of the team itself. Microgaming or NetEnd products will find demand even if they are not actively marketed or accompanied by major promotions. Newcomers to the market, in order to get sales, will first have to prove their worth in the eyes of the casino administration and in the eyes of customers, so they can’t count on much. There are three main categories of developers: 

  • Self-employed large concerns, often with their own extensive system of branches and contractors. They can afford to do turnkey projects – develop mechanics, adapt, and voice-over for different languages themselves. They themselves dictate the rules to the gaming halls, and the latter compete for the opportunity to be the first to present a long-awaited and widely-announced game.
  • Independent companies with interesting projects but need more big names. These companies need reputable casino brands and support from them in order to reach a good turnover – it is a work in progress. These teams can take on side jobs for large companies but also try to promote their own product in parallel. They may agree to be paid a modest fee in order to get the big casino to accept their software; they may even sponsor such bonuses for inclusion in a tournament or extra promotion with an announcement in the hat. Their task is to make themselves known, and they do it by any means necessary. 
  • The companies for the side job do not aim to promote their own brand, they are only interested in a stable, albeit relatively low, salary. They may sign temporary contracts with other firms or work on commission: adapting old games, developing branded products to casino requirements, and writing code for exclusives. You don’t really care what logo the product will be released under, and casinos always have someone to turn to if they need to translate a rare slot and its author does not mind localization. 

In any case, we are only talking about licensed developers. Each of these teams has the legal right to present their product for cash games. 

Percentage rates of developers 

Only teams who are not sure if the project will pay off – contractors and those who perform only part of the tasks and not the whole package – charge a one-off fee for their work. Companies that focus on their own brand most often agree on a percentage of profits. In this form of cooperation, the casino hosts the slot and records how much money it will bring in – the amount of investment minus the payout from a particular machine. This money is divided between the casino and the developer. This scheme allows you to achieve a balance and the developer will not expose an excessive percentage of payments, thus wishing to attract the client, but working to the detriment of the casino. Still, the casino can not underestimate the payout, because the code can not access. 

The average percentage in the industry is considered to be 15%. This rate corresponds to the revenues of the top 10-50 providers. Companies that are in the top ranks and can make a name for themselves charge up to 50%, especially when it comes to newcomers. In any case, this amount is deducted already from the casino’s income, i.e. after the payments to the client. If the RTP of the gambling hall is 95%, the administration and the representative of the provider divide the amount only from the remaining 5% and that’s after the deduction of taxes. Only the popularity of the casino and the mass nature of the hobby allows you to feel good even with such a modest return.