Micro-revolutionising the Casino industry
Are there hidden player segments that haven’t been exploited already by traditional online casinos?
Price Discrimination
Price Discrimination is a microeconomic pricing strategy that charges customers different prices for the same product or service. It is an approach that is based around what the seller thinks they can get the customer to agree to.
In pure price discrimination, the seller will charge the buyer the absolute maximum price that he/she is willing to pay. Different industries have different approaches to this strategy, but gambling companies inhabit the easiest solution to this problem. This is because players have the incentive to bet their entire gaming budget, in order to increase potential profits. In these cases, companies don’t need to know how much a player is willing to spend.
Is this approach perfect?
No, casinos don’t like microtransactions. They often discriminate the lower player by either limiting the minimum deposit or the minimum bet. This discrimination is not just limited to low-end players, with casinos tending to limit the amount a high roller is allowed to bet, according to the risk they are willing to take.
Limitations to players can include companies making their minimum bet too high, only using integers as a bet amount, FIAT currencies being divided by 100, minimum deposit amounts etc.
Our approach
We are prepared to look into the eyes of the industry, while changing standards we think are wrong. In this case, we knew there was an opportunity to be profitable, whilst also being microstake friendly.
Since we undertook this approach, we became committed to decreasing the minimum bet value as much as possible. Our first platform allowed bets of one Satoshi — the equivalent of $0.0001. Just a few months later, the minimum bet value on our platforms is $0.000000000031536.
The minimum bet approach would be barren if our platforms kept other common casino practice. Such as, only allowing deposits with a value higher than $5-$10. The cryptocurrency industry allows us to lower that artificial line, as low as our minimum bet value. We feel that a user should not have to commit to our clients with at least $5, if they barely know or trust the site.
The results
Our aim was to democratize the industry by opening our gaming platform to all members of the public. We want to create products where liquidity keeps tools such as chats and forums alive. Allowing more users to play creates the right atmosphere and environment that leads to a more enjoyable gaming experience. This is evident through the stats below.
At the time of writing, we are just a few days away from launching our first multiplayer game and a few weeks from launching our first Sportsbook. These will affect the stats, but for the purpose of this piece, we will stick with current facts.
Taking into account only deposits with a value of less than $5 USD, our platforms have received over $2,000,000. This is a $2 million dollar business that other casinos are not allowing themselves to be involved in. But it doesn’t stop there.
- The percentage of users that deposited less than $5 on their first deposit, have been more likely to deposit again than users who deposited with higher amounts on their first transaction.
- Dogecoin is the coin that allows users to deposit and play with as low as $0.000000000031536. This currency has more total deposits in USD value than Bitcoin
- 38.1% of users whose first deposit was a micro deposit, ended up doing a deposit higher than $5 at a later date.
- 24.23% of users starting with a deposit higher than $5 also made a micro deposit at a later date.
- XRP (a coin with lower minimum value than most of the main cryptocurrencies), has become the coin with the third most deposits in USD value, while also having the second most individual deposits.
