How Do Online Casinos Work?

The online casino industry is a booming one, growing year on year since it was first introduced. In the early days it was difficult to see this industry going anywhere, as few playes trusted the software or the banking options, and even the ones who did were not very impressed with what was available to then. Times have changed since then though and the technology available to modern online gamblers is astounding, with a range of table games and slot machines that look and feel like the real thing.

Despite the complex random number generators, the modern graphics and everything else that goes into a modern casino game, the process of setting up an online casino is actually very simple and for the most part it’s all about licenses and third-parties.

The Backbone of an Online Casino

The software is a major feature of an online casino, but this is also the area in which the online casino have very little input. If you have been around this industry for some time, or even if you have just played on a number of different casinos, then you have probably noted that they all seem to be setup in a similar way and many of them have the same games. This is because online casinos don’t use their own unique software, but rather they license software that is universally owned.

It would be too much of an ask for a new online casino to create hundreds of slot machines, just as it would be too much of an ask to ensure that each individual slot is licensed. Companies like Playtech and Microgaming exist so that they don’t need to. These companies devote themselves to the casino software, focusing all of their efforts into that area to ensure they get it right. They create the slot machines, the poker rooms, the table games and everything else that goes into a modern online casino, and then they license the software they have developed to online casinos.

This is why many casinos have the same games and look very similar, because most of them use one of two software providers. They do have their own skins so that they can personalize it a bit, but these don’t effect the games. As for the development of the games on this software, that is handled by the developers. They are the ones who do the research to find out what players want, they are the ones who piece new technologies together and they are the ones who create your favourite games. The online casinos don’t have time to go to these great lengths, so the players benefit greatly from this system.

This also helps the customers, because Playtech and Microgaming do not make a profit from the games taking your money, just as the developers of a slot machine would not make a profit when that slot machine is earning money in a pub or a casino. They are also audited and they adhere to strict rules.

Third Party Transactions

If you have ever setup your own e-commerce store, or have contemplated doing so, then you’ll know that one of the first things you need to do is to acquire the services of a company that will process payments. For an online casino things are no different, so after they license an online casino software, they must turn their attentions to a merchant provider that can process their payments. This also has some level of personalization, but most casinos use the same handful of providers for this service.

Last but Not Least

Online casinos are heavily audited and licensed, otherwise they wouldn’t be allowed to operate. Many of them are regulated by overseas agencies, typically in areas that do not require any tax to be paid on gambling (which is why you may pay tax in a betting shop in some countries, but not in an online casino). This is therefore another major area that the online casinos leave to someone else.

This is not a bad thing though, because as with casino software and banking options, those people make this industry their life’s work. This is what they do, what they have always done.

When all is said and done, the only thing that an online casino has to do is offer promotions, help customers and keep everything running. That’s what they do best — they are in the customer service game after all. So, when you think about it, whilst on the surface an online casino looks like a complex machine run by a small company, but when you dig a little deeper you find a tightly woven system of jobs and services that are actually controlled by several different companies.

Best Offer of 2019 -$1200 Free Play-through Bonus



Royal Vegas is going crazy with their promos this month if you are a Canadian based player. They are a serious operator and accept a host of easy deposit options such as eCheck. Quick payouts, and highly recommended.