The number most operators evaluate is the wrong one. When operators compare casino platforms, they compare the entry price: the upfront fee, the monthly retainer, the figure on the first page of the proposal. That number tells you what the platform costs to start. It tells you almost nothing about what it costs to run.
Revenue Share: A Percentage Until It Becomes a Paycheck
A revenue-share platform charges a percentage of your gross gaming revenue (GGR). Industry rates commonly run from 10% to 30%, and climb higher once content and aggregation cuts are layered on top. At launch, when revenue is small, the percentage feels minor. That is the trap. The fee is not fixed. It scales with your success, and it does not stop.
The Math That Changes the Decision
Assume you reach $500,000 in monthly GGR. At a 20% revenue share, you pay your platform vendor $100,000 every month. That is $1.2 million a year. Every year. For as long as you operate. The better your casino performs, the larger the cheque you write to someone else.
Total Cost of Ownership is the Only Fair Comparison
Total cost of ownership (TCO) measures what a platform costs across the full life of your operation, not just the first invoice. On a revenue-share model, that cost is uncapped. On an ownership model, you pay a one-time license fee and keep 100% of revenue after that.
Let's look at the cumulative cost comparison for the same operator with a $500K GGR over three years:
| Timeline | Revenue-Share Model (20%) | Ownership Model |
|---|---|---|
| Year 1 | $1.2M | $250K to $500K (one-time) |
| Year 2 | $1.2M (Cumulative: $2.4M) | $0 |
| Year 3 | $1.2M (Cumulative: $3.6M) | $0 |
The ownership model breaks even on the platform investment within months, then costs nothing for the life of the operation.
What the Entry Price Hides
Three key costs rarely appear in a first proposal:
- The Compounding Percentage: As GGR grows, so does the fee, with no ceiling.
- The Dependency Trap: On a rented or revenue-share platform, you do not own the code, so you cannot leave without rebuilding from zero.
- Zero Exit Value: A revenue-share license has no resale value. An owned platform with source code is a transferable asset that adds directly to your company valuation.
How to Run the Numbers Yourself
You do not need anyone's projection. Use your own:
Take your realistic monthly GGR at month 12. Multiply by your platform's revenue-share percentage. Multiply by 12. That is your annual platform cost on a revenue-share model. Compare it to a one-time license fee. The point where the two cross is your breakeven. For most operators at scale, it arrives inside the first year.
The Takeaway
Cheap to start and cheap to own are not the same thing. The right way to compare platforms is total cost across the life of your operation, not the price on signing day. Run your own numbers before you sign anything. If the revenue-share line is larger than a one-time license within your first year, you are not buying a platform. You are renting your own revenue back.
Run the comparison against your real numbers
A Platform Evaluation models total cost of ownership against your market, your capital, and your projected GGR, then shows you which commercial model costs you least over time.
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