How do apps that pay real money make money?
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Apps that a user pays into and wins money in are often referred to as Real Money Gambling (RMG) and the general way these types of apps make money is through a good Return To Player (RTP). If a player of a RMG app gets back on average 95% of what they put in they will think they made money but often have lost some, some players will make more than they put in but they are offset by players who lose most / all of what they put in.
Additionally as others have stated selling data about you or serving you ads is another way to generate revenue. Apps / Businesses that provide a service for free generally operate in this way, for example facebook.
Paid premium services such as added functionality can also be a significant revenue stream for some businesses such as Linked In.
Additionally you might see some apps giving a joining bonus like an extra $10 to sign up, acquiring users via ads is expensive, it can cost a lot of money to buy an install of an app so this kind of marketing is generally cost effective as odd as it might seem.
Source: App Developer for a major RMG / Social Casino company.
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