Comparison of fees and payment models of online casino platforms

Introduction

When choosing a platform for online casinos, it is critical to understand how costs are formed: fixed subscription payments, share of revenue (GGR), mixed schemes and hidden fees. A transparent payment model allows you to evaluate TCO (total cost of ownership) and choose the best option for your own business.

1. Subscription model

Descriptive operator pays a fixed monthly or annual fee for access to the platform and its updates.

Pros:

Projected costs.
All updates and support are included in the price.

Cons:

At low GGR, efficiency is lower.
PSP, licenses, RNG audit are paid separately.
Examples of amounts: €5,000 - €15,000/month for the basic package.

2. Revenue Share (GGR share)

The descriptor is charged a percentage of the gross platform revenue (GGR) - usually 15-40%.

Pros:

There is no upfront investment.
The platform only "earns" if you earn you.

Cons:

High cost with stable or high GGR.
The operator loses part of the profit.
Typical rates are 20% -30% GGR.

3. Mixed models (Hybrid)

Descriptive small subscription + low share of GGR (e.g. €2,000/month + 10% GGR).

Pros:

Balance fixed and variable costs.
Lower risk at the start and lower overall GGR rate at the upside.

Cons:

It is more difficult to predict costs.
Break-even point analysis is required.

4. Built-in fees and additional costs

1. Integration of game providers: €2,000 - €5,000 each; sometimes a percentage of payouts.

2. Payment systems (PSP): 0.5% -3% of the transaction + a fixed fee of €0.10- €0.50.

3. Licenses and audits: paid separately: MGA/UKGC/Curacao, RNG and PCI DSS, KYC procedures (€1 - €5 per verification).

4. Support and SLAs: extended SLAs (24/7, MTTR <30 m) + €2,000- €5,000/month

5. Comparison table

Model	Subscription	Revenue Share	Mixed
Start-up costs	High upfront	Low/none	Moderate
Start-up costs	€5,000- €15,000/month	0	€2,000/month + 10% GGR
Costs at growth	Are linear	Proportional to GGR	Linear + variables
Transparency	High	Depends on GGR	Average
Risks	Remain on the operator	Share with the platform	Are divided
Flexibility	Limited by package	High (no forward)	Average

6. How to choose a model

1. Project phase:

Startup: revenue share or mixed model minimizes upfront.
Developed business: subscription gives control over costs with predictable GGR.

2. Projected GGR:

If the expected GGR is <€200,000/month, revenue share may be more profitable.
At GGR> €500,000/month, subscription is more economical.

3. Risk level:

Operator's willingness to bear fixed costs → choose a subscription.
With high revenue volatility, revenue share is better.

Conclusion

Each payment model has its own strengths and weaknesses. Subscription provides stable costs and a full range of services for a fixed fee, revenue share minimizes upfront, but increases OPEX with revenue growth, and mixed schemes provide a compromise. The choice depends on the stage of the project, GGR forecasts and operator's readiness for risk.