Unraveling the Revenue Streams of Online Casinos in New Zealand

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Unraveling the Revenue Streams of Online Casinos in New Zealand
Unraveling the Revenue Streams of Online Casinos in New Zealand

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Last updated: 6 February 2024

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From the outside looking in, online casinos seem to be a realm where fortunes are won and lost at the click of a button. However, like any other business, online casinos need to generate revenue to stay operational. This article explores how online casinos in New Zealand and around the world make their money.

The House Edge

The primary way online casinos make money is through something known as the “house edge”. This is a mathematical advantage that the casino has over the players in the long run in every game. The house edge varies depending on the game but it ensures that over time, the casino will take in more money than it pays out to players.

Rake in Poker

In online poker, casinos make money through a “rake”, a small percentage taken from the pot in cash games or an entry fee in tournaments. This is how poker rooms generate revenue, regardless of who wins or loses the game.

Betting Limits

Online casinos set minimum and maximum bet limits. The minimum ensures a steady stream of income, while the maximum limit protects the casino from high-rollers who could potentially win large amounts and disrupt the casino’s cash flow.

Bonuses and Promotions

While bonuses and promotions may seem like they’re designed to give players free money, they’re also a way for casinos to make money. Most bonuses come with wagering requirements, which require players to bet a certain amount before they can withdraw their bonus funds. This increases the chance that players will lose their bonus before they can withdraw it.

Losses from Players

While it is possible for players to win in the short term, statistically, most players will lose money the longer they play. This is due to the house edge and the fact that the odds are always in the casino’s favor.


Online casinos, like their traditional counterparts, make money through a combination of the house edge, betting limits, rake in poker, and wagering requirements on bonuses. These mechanisms ensure a steady revenue stream for the casino and allow it to remain profitable. It’s important for players in New Zealand and elsewhere to understand these mechanisms, play responsibly, and remember that gambling should be considered a form of entertainment, not a way to make money.

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