Membership Dues: the Use in the Gambling and Betting Niche

Experts from the Online Casino Market studio discuss the growing trend of offering subscription models on entertainment sites. Our specialists explain why this format of customer interaction is gaining popularity and how market leaders are implementing this tool.

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About the Concept

This is a monetisation option according to which clients pay a regular contribution (for example, monthly) for access to selected privileges or gambling content.

Unlike the traditional scheme where people make deposits and place bets, the membership model involves a fixed fee for additional features.

Key Milestones in the Development of the Subscription Economy

The phenomenon is considered relatively new in the market. History of the approach’s expansion:

• Early 2000s. Online casinos and poker rooms introduced VIP programs and loyalty systems. They worked based on deposits and customer activity. PokerStars VIP Club was the first service in which members received cashback and exclusive bonuses depending on the scope of the game. The solution has been a recognised industry standard for many years.
• 2015–2020. The model appeared in the fantasy sports and betting sectors. For example, DraftKings and FanDuel launched premium contributions with access to analytics and tournaments. Besides, many poker rooms began to offer paid VIP statuses with exclusive freerolls, cashback, and personal support.
• 2020–2025. Operators tested new interaction options, subverted by major brands (Netflix and Xbox Game Pass). It was decided that players should be provided with incentives and extra spins. Bookmakers began to introduce fees for lifetime analytics and increased odds.

Prospects for Registration Schemes

Today, they are only developing and gaining momentum. Entrepreneurs are actively looking for ways to implement such an approach in their work to improve client experience and improve the profitability of entertainment projects.

Among the key trends, it is worth highlighting the following:

• integration with blockchain and Web3;
• development of gamified subscriptions where users receive rewards;
• integration into metaverse betting.

The Use of Subscriptions in the Casino and Sportsbook Industry

Let us consider how operators implement regular dues.

Popular Formats

Depending on the type of activity, the following options are distinguished:

1. Casino deductions. This is access to monthly bonuses (free rotations and re-spins), increased cashback on lost rounds, as well as exclusive promotions and tournaments. The most active clients can get VIP status with an accelerated withdrawal of funds and a personal manager.
2. Poker offers. Operators have open access to closed freerolls, weekly quests, and challenges with large prizes. Reducing the rake and increasing the rakeback (the percentage of the refund rate) are also quite in-demand options.
3. Betting programs. Bookmakers offer enhanced odds on selected events and cashback on unsuccessful bids or sessions. Among the popular solutions, private markets, premium analytics, forecasts, and match statistics can also be highlighted.
4. Fantasy sports offers. Players receive additional tickets to international tournaments, advantages when creating teams (for example, an increase in the budget limit for participants), as well as access to advanced analytics and forecasts.
5. Cryptogambling. The format is only gaining momentum. It is closely related to the development of blockchain casinos and DApps (decentralised betting applications). Entrepreneurs give customers memberships in NFT communities that provide exclusive bonuses, participation in DAOs (autonomous blockchain organisations), and closed crypto bets.

Monetisation Methods

Companies use different approaches to fundraising:

1. Fixed monthly rate. For example, $9.99 per month for VIP status in an online casino.
2. Multi-layered proposals. The subscription service includes basic, advanced, and premium levels with different reward systems.
3. Purchase of NFTs or tokens. To receive privileges, gamblers must purchase some kind of digital assets.
4. Hybrid model. This is a combination of several methods and an opportunity to win a chance to sign up by participating in exclusive promotions of a casino or bookmaker.

Interaction with a Traditional Loyalty Program

Subscriptions are being increasingly integrated into incentive schemes for entertainment projects.

Users can perform the following tasks:

• accumulate more loyalty points for bets;
• get an accelerated status upgrade (for example, go to the VIP club faster than regular players);
• use bonuses together with classic depositary shares.

Advantages of the Model in Gambling

It is beneficial for both operators and their customers. Membership dues provide a decent profit for online casinos, increase engagement, and reduce risks for clients.

Let us consider the main advantages of the tool:

Stable and Predictable Income

Unlike the traditional model where revenues depend on the players’ activity, the subscription provides regular payments.

The solution helps business owners to:

• reduce dependency on high rollers (people who make large deposits);
• decreases income fluctuations;
• simplify revenue forecasting of future periods.

For example, 100 thousand users can subscribe for $10 per month. Thanks to this, an online casino will receive $1 million every month, regardless of the size of bets.

The subscription model reduces dependence on VIP players. The usual gambling economy is built around a small number of high rollers who bring in the lion's share of the income. The tool allows enterprises to diversify their profit and not depend on a specific category of users.

Increased Retention and Loyalty of the Audience

People who have paid to sign up are more likely to continue placing bids to take advantage of the benefits of such an offer. These are bonuses, cashback, exclusive wagers, etc.

For example, the PokerStars Rewards program gives casino visitors more incentives and freerolls. This motivates them to stay on the platform as long as possible.

The subscription model also affects the growth of ARPU (average revenue per user). Even less active gamblers generate revenues for entertainment brands by subscribing. The company's profit no longer depends on how often consumers participate in tournaments and spin reels in slots.

Extra Monetisation

The tool is perfectly combined with other sources of income:

• standard bids and deposits;
• in-game purchases (such as the acquisition of more bonuses or virtual currency);
• sale of analytics and forecasts (for bookmakers).

Improved Reputation and Transparency of the iGaming Brand

Subscriptions reduce the negative perception of gambling as an industry built only on losses. In this regard, operators are increasingly positioning casino solutions as entertainment, not as a way to extract profit from players.

Building Trusting Relationships with Customers

The main reasons why people choose subscription services:

1. Cost reduction. Instead of risking large amounts in a casino or a bookmaker’s office, users can choose to sign up. After that, they will receive a good reward without making large deposits.
2. Access to exclusive bonuses and promotions. These are free spins without account replenishment, increased odds on bids, and access to closed tournaments or VIP rooms.
3. Personalised service. This is a dedicated manager, prioritised withdrawal of funds, and 24/7 support without the need to wait on hold.
4. Gamification. Operators can implement a system of levels and achievements, weekly challenges, quests, awards, or other types of incentives.

Compliance with Digital Economy Trends

The subscription model has been successfully implemented in video entertainment (Xbox Game Pass, PlayStation Plus), streaming services (Netflix, Spotify), and other industries for many years. Clients are accustomed to the tool, so entrepreneurs should also adapt this format.

How Market Leaders Use the Method

It has not yet become mainstream, but many companies have already successfully implemented it.

DraftKings

The proprietary DK Nation program provides access to:

• premium content with betting analytics, predictions of the matches’ outcomes, and insider information;
• improved odds, statistics, and tips from the experts;
• VIP programs for fantasy sports;
• exclusive tournaments.

Currently, the system is only available to US residents. Soon, the bookmaker plans to launch a subscription program in other markets, including Europe, Australia, and Southeast Asia.

PokerStars

The enterprise’s service is the industry standard and one of the best solutions for online poker.

The product offers:

• return of some part of the rake (commission);
• bonus tournaments;
• freerolls;
• accessories with iGaming brand merchandise.

The longer participants remain in the program, the higher their status and rewards.

FanDuel

VIP subscriptions to fantasy sports are valid in the US. Gamblers receive improved betting conditions, cashback, premium analytics, forecasts of future matches, and statistics of already held competitions.

The solution is designed for those who actively participate in such entertainment. They can team up with other players, compete in forecasters’ tournaments, and share the achieved results on social networks.

Winimax

The Winimax Club system gives clients access to:

• exclusive poker contests;
• premium content;
• VIP levels;
• freerolls, bonus chips, and rewards;
• special tasks and challenges for subscribers.

The offer is valid in France and some other European countries but with restrictions.

Stake

The cryptocurrency platform offers special offers for VIP gamblers. These include weekly cashback, exclusive bids, personal support, digital asset bonuses, and early access to new blockchain games.

Restrictions and Regulation

Membership services in the online casino niche are subject to the same laws as the land-based segment.

Licensing

In many countries, any recently released product requires a permit. If after some contribution people are provided with bonuses, cashback, or exclusive bets, then regulators regard this as part of the general gambling system.

Such a practice exists, for example, in the UK. There, all bonuses should be inspected by the UKGC.

In the US, casino regulation varies depending on the state.

The model can be considered illegal if it offers guaranteed rewards without a random outcome. Therefore, the proprietary systems from FanDuel and DraftKings work only in those states where online betting is fully legal. These are Nevada, Pennsylvania, Delaware, and other states.

Customer Protection

In most jurisdictions, gambling subscriptions are prohibited from being automatically renewed to avoid hidden fees. Entrepreneurs must be sure to warn clients about the prolongation and offer an easy way to cancel it.

In Europe, the Consumer Protection Directive is in effect. The document defines the transparent operation of the signup and prohibits automatic withdrawals without the user's consent.

Adequate Attitude Toward the Placement of Bids

Key aspects that should be considered:

1. Support for responsible gambling. Regulators require that subscription bonuses do not encourage excessive spending. Thus, in the UK, all solutions must be integrated with self-regulation systems (GamStop, GameCare). A mandatory condition is the ability for users to independently limit access to sessions.
2. Identity verification. This kind of product must comply with KYC (Know Your Customer) standards so that minors cannot subscribe.
3. Age limit. In some countries, such services may be prohibited for people under 21, even if casino entertainment itself is permitted from 18 years of age. A similar practice exists in the US.
4. Transparent marketing. Business owners cannot use the words “free money” or “guaranteed profits”. All terms of interaction must be spelled out clearly.

Cashback and Bonus Limits

In many European regions, refunds for unsuccessful bids may be limited to avoid the “stimulation of losses”.

A similar situation has developed in Germany. The regulator has set a limit on reward offers at €100 per month to prevent aggressive marketing.

The French government requires that all services be easily withdrawn and have no hidden conditions.

The Main Things about the Subscription Economy

This financial model is in high demand in the gambling industry.

Key aspects that entrepreneurs should take into account:

• The solution provides stability for operators and additional benefits for players. It allows project owners to retain customers, forecast revenues, reduce dependence on high rollers, and create a more transparent ecosystem.
• The choice of subscription format depends on the type of activity. Customised options are developed for online casinos, betting platforms, and poker rooms. It is also important to decide on the monetisation method and ensure integration with a traditional loyalty program.
• The model is actively used by market leaders to create predictable income streams. Among the successful examples, we can name products from DraftKings, PokerStars, FanDuel, Winimax, and other providers.
• The tool faces several restrictions. They are related to mandatory licensing, consumer protection, and bonus regulation.

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