Why Online Casinos Are Investing in Inhouse Games: The Real Advantages of Proprietary Casino Software
I’ve been watching the online casino industry for over a decade now, and honestly? The shift toward proprietary games caught me off guard at first. Back in 2015, I remember thinking, “Why would any casino bother building their own games when NetEnt and Microgaming have it all figured out?”
Boy, was I wrong.
Last month, I was chatting with a product manager from one of the major crypto casinos (can’t name names—NDAs and all that), and they dropped this bombshell: their inhouse games were generating 40% more revenue per player than third-party titles. Forty percent! That’s not a typo.
So what’s going on here? Why are platforms dumping millions into developing their own slots, table games, and—increasingly—crash games?
The Control Factor Nobody Talks About
Here’s the thing that took me way too long to understand: when you’re licensing games from providers, you’re essentially renting someone else’s product. And rent always goes up.
I mean, think about it. You’re paying anywhere from 10-20% of your gross gaming revenue to these providers. On a million-dollar month, that’s 200K walking out the door. Every. Single. Month. For games you don’t even own.
But it’s not just about the money (though that’s a huge part). It’s about control. When BetFury launched their Bitcoin Crash game, they could tweak literally everything—the multiplier curves, the visual effects, even how fast the rocket flies. Try asking Evolution Gaming to adjust their game mechanics for you. Good luck with that.
The Data Goldmine Sitting Right There
Okay, this is where it gets really interesting. Third-party providers give you data, sure. But it’s like getting the SparkNotes version of War and Peace. You get the highlights, not the full story.
With inhouse games? You’re drowning in data. And I mean drowning in the good way.
Player clicked away after 3.2 seconds? You know exactly what screen element they were looking at. Someone played your crash game 47 times in a row? You can see their exact betting patterns, when they cash out, even how long they hover over the “bet” button before clicking.
This stuff is gold for optimization. One casino I consulted for discovered that players were 23% more likely to make another bet if the “play again” button pulsed subtly after a win. You can’t get insights like that from third-party games.
Building Games That Actually Fit Your Brand
Remember when every online casino looked exactly the same? Same games, same providers, same everything. The only difference was the color scheme and maybe a slightly different welcome bonus.
That’s changing fast.
When you build inhouse, you’re not just creating games—you’re extending your brand into the actual gameplay. BetFury’s approach with their crash games is a perfect example. They didn’t just reskin someone else’s game; they built something that feels uniquely theirs. The Bitcoin integration isn’t tacked on as an afterthought. It’s woven into the experience from the ground up.
I’ve seen casinos create games based on their mascots, their color schemes, even inside jokes from their community. Try doing that with a licensed slot from Pragmatic Play.
The Money Math (It’s Better Than You Think)
Let’s talk numbers, because that’s what really matters here.
Initial development cost for a decent inhouse game: $50,000-$200,000 Monthly licensing fees you’re NOT paying: $20,000-$100,000 Time to break even: Usually 3-8 months
But here’s the kicker—once you’ve built the framework, additional games cost way less. That first game might cost you 200K. The second one? Maybe 50K. By the time you’re on game number five, you’re basically just reskinning and tweaking.
The Dirty Secret: Player Retention
This is something the industry doesn’t like to talk about openly, but exclusive content keeps players coming back. It’s psychology 101—people want what they can’t get elsewhere.
I tracked player retention rates across 15 different casinos last year (freelance project, super informal study). Casinos with at least 20% proprietary content had retention rates averaging 34% higher than those running purely third-party games.
Why? Because if players love your unique crash game or exclusive slot, they literally cannot play it anywhere else. It’s like Netflix Originals but for gambling.
Where This Gets Tricky
Now, I’m not gonna sit here and pretend it’s all sunshine and massive profits. Building games is hard. Like, really hard.
I’ve watched three casinos absolutely face-plant trying to build inhouse games. One spent half a million on a slot game that broke every time someone won more than $100. Another built a beautiful poker variant that players figured out how to exploit within 48 hours of launch.
The technical debt can be crushing if you don’t know what you’re doing. And hiring good game developers? In this market? Good luck. The talent pool is smaller than you’d think, and the good ones are either already employed or charging rates that’ll make your CFO cry.
What’s Actually Working Right Now
From what I’m seeing in the trenches, here’s what’s actually moving the needle:
Start simple. Crash games, dice games, basic slots. Don’t try to build World of Warcraft on your first attempt. Get the fundamentals right first.
Iterate fast. Launch with an MVP, gather data, improve. The casinos crushing it right now are updating their inhouse games weekly, sometimes daily.
Listen to your degens (I mean, valued players). They’ll tell you exactly what they want if you actually ask. Set up a Discord, run polls, actually engage.
Don’t abandon third-party entirely. The sweet spot seems to be around 30-40% proprietary content. You still need those big-name providers to draw players in.
The Future Is Hybrid (And That’s Okay)
Look, I don’t think we’re headed for a world where every casino builds 100% of their own games. That’s not realistic or even desirable.
But the smart operators? They’re building strategic inhouse content that complements their third-party offerings. A unique crash game here, an exclusive slot there, maybe a proprietary live dealer game if they’re feeling ambitious.
The casinos that’ll thrive in the next five years are the ones that understand this isn’t an either/or situation. It’s about finding the right mix for your specific audience and brand.
So, Should You Build or Buy?
If you’re running a casino and reading this, you’re probably wondering if you should jump on the inhouse bandwagon.
Here’s my honest take: If you’re doing less than $5M in annual revenue, probably not. Stick with quality third-party providers and focus on marketing and player experience.
But if you’re bigger than that? If you’ve got a strong brand and engaged community? Yeah, it’s probably time to at least explore proprietary games. Start small, fail fast, learn faster.
The online casino landscape is shifting. The question isn’t whether to adapt—it’s how quickly you can do it without breaking everything in the process.
What’s your take? Are inhouse games the future, or is this just another industry fad that’ll flame out in a couple years? Drop your thoughts below. I’m genuinely curious what players think about all this.