alt Hacker News> Casino's can't survive off casual players. They need the addicts to make payroll.
The fact that the pros are simulating problem players because then the betting apps give you more leeway, e.g. by "send[ing] you bonus money" and raising your limits, paints the picture quite effectively in my book.
> Casino's can't survive off casual players. They need the addicts to make payroll
To what degree is this true? Sure, a casino with a massive spend on free alcohol and structure needs a high profit margin to return its capital. But betting apps don't have those costs.
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You nailed the key point my muddy intuition (and the article) failed to express.
Pro gamblers simulate problem gamblers, so they can bet more.
I said, "Casino's can't survive off casual players. They need the addicts to make payroll"
> To what degree is this true?
I don't know the ROI. It's hyperbolic, I'll freely admit that.
But I think there is an important point. We let problem gamblers gamble more, and it's not fair pros take advantage of that dark pattern.
The aqusition costs are extremly high for online betting and online casinos. If you pay 1000 usd to aquire one customer it is not profitable if they gamble 50 usd / year.
This is backwards. Casinos offer huge cross subsidization opportunities like getting people to spend lots of money in clubs and bars or gamble on games like slots that have a huge house edge while apps have near zero cross subsidization opportunities and massive overhead. An app running at draftkings scale costs a lot to operate.
I’ve believed for a long time and continue to that the math on these businesses just doesn’t work. Eventually they won’t exist because they aren’t profitable.