Can Small Online Casinos Survive The Future? 

13 November 2001

In an age where entrepreneurs only need a good idea, why have a select few of the world’s online casinos become such super powers? There was a time where an online casino operator only needed $100,000, a laptop and a Caribbean island to get started. But now, it seems like the Davids just can’t compete with the Goliaths that are dominating the industry. Researchers agree that the days of the online casino entrepreneurs are numbered.

A case study on InterCasino ( explains what happens when you combine this hyper-growth industry with perpetual reengineering and the financial muscle to make players feel secure:

-This combination starts a snowball effect which leads to greater casino profitability used to fund the additional innovation which attracts more players.

-With more players, the casino profitability increases and it is then able to reinvest profits into player’s bonuses that smaller casinos could simply never match.

-That then entices more players to leave the small casinos for the superior bonus offers at the large casinos, thus perpetuating the cycle.

Taking the InterCasino ( example, we can examine one of the largest and longest operating casinos on the Internet. They offer their players a choice of either a $40 bonus the first time a player, either new or existing, deposits $40 or more, a $70 bonus the first time a player deposit $70 or more, or a $100 bonus the first time a player deposit $100 or more. Comparing this to the industry standard either $25 dollars or 10% of your initial deposit, and it is clear to see that the small operators can’t offer a comparable incentive.

Compounding this effect, the bonuses offered at InterCasino are often in excess of twice the industry average, which then attract more players, who in turn contribute to jackpots exceeding 100 to 1000 times those of smaller casinos. InterCasino currently offers total jackpots of more than $250,000, with the biggest paying game, Rags to Riches, alone offering a $222,000 grand prize.

As this industry develops, expect to see larger casinos like InterCasino out-pacing their smaller competitors in terms of both available bonuses and jackpot value. You can also anticipate that players at small casinos will continue to be drawn to the technology and choice of games that only the largest online operators can offer.