The global online casino market reached a value of over $80 billion (£59.63 billion) in 2024, which shows a genuinely lucrative industry with a range of lessons waiting for other companies to unlock. The low-risk recurring revenue model is the most valuable lesson for subscription and SaaS companies looking to achieve a steady, predictable income while building a larger customer base and brand loyalty. The model uses microtransactions and loyalty-based progression rewards to keep users locked into the platforms.
Subscription and SaaS companies can achieve the same results as they already share the same ambitious goal. They both want a steady income and a long list of repeat customers. The gaming industry mastered the revenue model, and it’s time to see how subscription and SaaS businesses can apply the same principles to achieve growth, profits, and retention.
“Low-Stakes” Gaming Mastered Recurring Microtransactions
Various low-stake casino options have successfully applied the low-risk revenue model to allow risk management by spreading it across small interactions rather than by avoiding it. Every wager contributes to a steady and predictable income, even when users pay only £20 or £15 to gain fast access to popular casino games like baccarat, blackjack, slots, roulette, scratchcards, poker, and crash games. Users are more willing to invest a smaller amount, even multiple times, but platforms seeking larger deposits upfront won’t see the same result.
These casinos operate through a stable revenue model that invites frequency and thousands of smaller bets daily rather than relying on high-spending players. The goal is to aim for higher volumes but lower values with each payment. Players only spend £15 per session, but the amount adds up fast when thousands of players log into the platform, resulting in recurring micro-payments that are often supported by frictionless payment options like crypto, digital wallets, and prepaid vouchers.
The casino operators also entice players with recurring but small incentives to keep playing and automated renewal bonuses or loyalty rewards for frequent small deposits. The model delivers consistent engagement that SaaS and subscription businesses can apply.
How to Apply the Model to SaaS Pricing
Subscription software providers have always sought stability through the recurring monthly revenue (MRR) model. However, many struggle to price services that won’t scare new users away or forget to reward loyalty. The low-risk gaming model is a blueprint that removes entry barriers and extends the customer’s lifespan.
Freemium games offer a basic free version with some paid options like exclusive features or premium upgrades, which can be more pricey but are voluntary. Participation remains high while churn rates are low. SaaS providers can introduce flexible payment tiers with micro-upgrades that are small but optional charges to boost long-term revenue.
Customer retention is also influenced by psychology. Gamers return often because they see incremental progress in a new challenge or unlocked feature. Subscription services could apply this principle by integrating gamified milestones or releasing frequent feature updates to reward engagement. This approach keeps customers subscribed with a low individual cost.
Low-Risk Revenue Provides Predictability
SaaS and subscription businesses should implement low-risk revenue models that offer some kind of predictability, which makes as much difference as stock volatility versus gold stability. Precious metals have always provided long-term and steady revenue growth, and that’s what subscription businesses should aim for because high-risk and low-volume models will be as volatile as the stock markets.
Forecasting cash flows also becomes less stressful when there are frequent and low-risk revenue increments. Regulated gaming operators typically model revenue projections using rolling averages over time, which allows discount spikes from high-value players in the UK. SaaS financial teams could use similar models by focusing on the average revenue per user (ARPU), which shows stability rather than the pursuit of massive deals that distort forecasts.
Predictable revenue growth can also improve business resilience during downturns. Big profit margins often decline quickly when customer budgets tighten, but micro-subscriptions tend to stand steady. Users are more likely to cancel their £100 subscription than their £7.50 monthly subscription. Micro-transactions persist and act like a hedge against volatility.
Smaller Always Feels Safer
Low-risk models have a behavioural foundation that reinforces success. Customers are more comfortable committing to smaller and more familiar costs rather than infrequent or larger fees. Online gaming operators rely on those comfort levels, encouraging long-term participation by reducing the perceived risk of larger payments.
SaaS subscription businesses should introduce a “soft commitment” pricing model like flexible cancellations or pay-as-you-go usage. The customer will feel like they’re in control, even though they spend more time compared to buying an upfront licence. Perceived control builds and sustains trust.
Low-risk gaming operators even make payments nearly invisible using one-click renewals, automated deposits, and wallet integration that reduces the user’s efforts. SaaS providers can implement transparent billing and simpler upgrades that remove any payment friction to make it more natural and automated.
Achieve Long-Term Growth With Rewards
Casino operators know that retention doesn’t just happen. It’s developed through ongoing rewards. Cashback systems, loyalty programs, and repeat-player bonuses create some sense of progression and make players come back to spend more.
The ideal loyalty program for SaaS and subscription businesses must recognise the customer, personalise rewards, and aim for long-term pricing benefits through a clear structure and diverse earning methods. Offer customers incremental rewards for their continued use, such as early access to features and data storage increases, building the same sense of continuity typically found in gaming. SaaS providers can even use the gaming industry’s referral mechanisms to inspire users to refer friends for added rewards.
Manage Risk Through Volume
A clear parallel between SaaS and gaming is how both manage risks through scale. Casinos don’t depend on a single player’s fortune. They rely on statistical consistency across thousands of players. SaaS businesses also thrive when distributing their customer base over diverse and smaller accounts instead of holding onto a few enterprise clients.
Every small subscription reduces how much a business must depend on a single client. It designs a natural hedge against churn. The business becomes less exposed to risks when growth relies on volumes rather than a few solid contracts. The same principle applies to product design. Modular upgrades and optional add-ons will allow businesses to encourage incremental spending.
The Outlook for Low-Risk Recurring Revenue Models
There are different types of low-risk recurring models subscription and SaaS companies can offer users, including subscription, membership, leasing, consumables, service, freemium, and rental models. Each one holds the key to sustainable revenue growth while offering benefits like higher customer retention, accurate forecasts, and strategic planning.
The gaming industry has refined different low-risk recurring models over the past few years, but artificial intelligence and predictive analytics provide simpler and more effective ways for SaaS and subscription businesses to apply the model. Gaming operators use these technologies because automation is the future of the low-risk recurring revenue model.
Conclusion
Low-risk gaming models show how SaaS and subscription businesses can achieve steady growth and scalability. Casinos prove that consistent, smaller transactions create more value than relying on a few high spenders. By adapting these repeatable revenue structures, SaaS and subscription companies can secure stable income, retention, and long-term profitability.
