Friday, 15 October 2010

How Player Limits Boost Operator Profits

I was talking to an executive at the one of the leading online operators who explained to me why offering players responsible gaming features is good for business. Operators are very focused on reducing player churn during key phases of the customer lifecycle, such as in the initial month after customer acquisition when operators typically lose new players. For those who survive the first month, on average 35% of players remain with their operator after 3 months and this typically reduces to 15% after 12 months.

The executive explained to me that when players set limits (Player B), they are more likely to bet more often within their limits and are therefore less likely to become one of those players that the operator typically loses after the first month (Player A).

Quite a nice example of how responsible gaming and sustainable profits go hand-in-hand. The link between player protection and profits has received little or no research and is something that I’ll be focusing on from an analytical research perspective in the future.