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Ways for casinos to avoid bankruptcy in 2024
Online casinos are popping up everywhere, and it seems that starting an online gambling business is simple: just have a little money, hire a designer, and devote a little time to customer support. However, it is only at first glance that it is so simple. Running a successful business requires much more than just having free time.
According to Forbes, only about 50% of small businesses survive the five-year mark, and 80% of them fail in the first year. The problem is not launch but survival. Thus, every player wonders whether his favorite casino might go bankrupt. If you are worried, then the best choice would be to play in licensed casinos, such as OneDun. When playing here, you can be calm about safety.
Can online casinos go bankrupt?
Unfortunately, just like any other business, online casinos are at risk of becoming a casino bankrupt. Although the online gambling market seems to have endless possibilities, small operators often struggle to survive. With big brands dominating the market, maintaining profitability, attracting qualified employees, and meeting customer needs can be a challenge.
What happens to your money if an online casino goes bankrupt?
To date, there is no known customer protection program that would compensate players for losing money in such situations, even if it occurs within regulated and legal casinos. How to avoid bankruptcy? The only thing you can do to protect yourself is to contact the casino and ask about their policies and security systems, or in other words, what their plans are in case of bankruptcy.
The most common protection method is to keep client funds in a separate account. This means that the online casino uses its own funds to conduct business, and your money remains safe until the moment you want to withdraw it. A good casino will never use your deposits for ongoing operations. In addition, the RESPONSIBLE GAMING practice will also protect you from unnecessary waste of funds.
Why do casinos go bankrupt?
There are many reasons why online casino brands may run into problems, and we will only cover the most common ones.
Legal issues and fines
Many entrepreneurs underestimate the costs of running a casino, which can lead to a reduction in customer support and financial staff. This may cause a negative reaction from both the gambling community and gaming authorities and, ultimately, casino bankruptcies. As a result of the accumulation of fines, the business becomes vulnerable and may be forced to declare bankruptcy.
Lack of style and quality games
For a small amount of money, you can create an online casino and make sure that it has everything you need: bright banners, fashionable colors, and original fonts. However, as more games are added, the site begins to fall apart, and the user experience becomes terrible.
Investing in branding and standing out from the crowd pays off, so companies that cut creative and technical costs often pay a higher price for it. And this can lead to bankruptcy gambling. There is no reason for 21st-century players to play at an online casino where even the simplest slot machines take a long time to load.
Bad reputation and marketing
Nowadays, the importance of PR in online casinos cannot be underestimated, and the days when every type of advertising was considered useful are long gone. Today, good PR is critical and even the slightest sign of negative connotation can have devastating consequences for a brand and lead to its bankruptcy.
The main threats to bankrupt casinos include:
- Negative reviews and experiences that are actively discussed on social networks and specialized Internet platforms;
- Poorly planned and targeted advertising campaigns on social media;
- Overpromising and underestimating risks;
- Uncontrolled public speaking, especially with a negative connotation, in the media;
- General ambiguity in business operations and practices.
In today’s world, everyone can claim to be a marketing expert, which significantly impacts the life cycle of an online casino business.
Can one player bankrupt an entire casino?
No player is capable of winning that much money because the casino’s mechanism is always designed in favor of the house, even in the case of large wins by the player. How many casinos have gone bankrupt? However, online casinos may face financial difficulties if they fail to find optimal strategies on time. To reduce the risk of bankruptcy, it is recommended to prefer playing with large and respected brands.
