Latest News
The Innovative Strategies Propelling America’s iGaming Startups
It’s been six years since the Professional and Amateur Sports Protection Act (PASPA) was repealed, allowing each state to legislate sports gambling independently. In this evolving landscape, American startups have been at the forefront of innovation in the online gambling industry. Their fresh approaches and adaptive strategies have set new benchmarks in customer acquisition and retention, reshaping the market dynamics significantly.
According to a study conducted in March 2024 by Waterhouse VC, a comprehensive analysis of customer acquisition strategies reveals key trends and tactics employed by these startups. The study outlines seven primary strategies that have been pivotal in securing the first customers for these emerging companies.
Surprisingly, most startups attributed their initial user acquisition success to a singular strategy, with only a minority leveraging more than three methods. This focused approach underscores the startups’ strategic clarity in navigating the competitive landscape.
High-touch customer engagement emerged as the most popular strategy, emphasizing the importance of personalized interaction with customers in the early stages. This approach, often considered unscalable, proves crucial in building initial momentum and establishing a loyal customer base.
Interestingly, the report noted a significant omission – the reliance on paid advertisements was not a prominent strategy for acquiring the first cohort of customers among these startups. This deviation from traditional online marketing tactics signifies a strategic shift in the industry, highlighting the innovative thinking of these companies.
An overview of the innovative strategies employed by iGaming startups. Image: Waterhouse VC
QUOTES
“We had to very quickly focus on being more ‘hands-on’ with customers engaged with unfamiliar sports and less traditional formats – both from a marketing and trading perspective. Be prepared to dive extremely deeply into how your vision translates into customer (revenue) upside.” — Joseph Dunnigan, Founder & CEO, ALT Sports Data
“Early on, we realized that helping customers navigate the many common pitfalls of registering, funding, and betting with online operators was more challenging than expected. Due to the complexity of passing KYC checks, linking reliable payment options, and even navigating difficult to understand app interfaces, our hand-to-hand concierge services were uniquely positioned to support customers and operator clients alike. We overcame these challenges by dedicating ourselves to becoming the resident experts on our operator products in order to properly represent them with customers, and also seamlessly guide those customers through their respective journeys, regardless of their previous betting experiences.” — Jai Maw, Co-Founder & President, Betting Hero
“We saw that in our product journeys where many potential users would see our prices/odds on another web property or chat group, and come to our site with the intention of placing a bet, but had difficulty procuring a crypto wallet (or understanding what this was). The CEO or another member of our leadership team reaches out to every single one of these users to try to ease the learning curve and onboard them to the site. This isn’t a scalable solution, but is highly important to do and valuable in an early stage company to learn about your customer base.” — Varun Sudhakar, Co-Founder & CEO, BetDex
“Prior to Low6, I had been running a sports events marketing agency and my co-founder was in retail bookmaking so we initially leaned on our connections in both fields to introduce them to our free-to-play pool betting app. We were quite fortunate that the app was built on social competition so had some early success with the power of network effects in building out our customer base.” — Jamie Mitchell, Co-Founder & Group CEO, Low6
“We leveraged the anticipation and excitement of our waitlist by offering early access to those who signed up. This created a sense of exclusivity and urgency, encouraging people to join and engage with our platform. We implemented a strong referral program that rewarded existing users for bringing in new customers. This not only helped in customer acquisition but also fostered a sense of community around our platform.” — Jacob Fortinsky, Founder & CEO, Novig
“Choosing the right strategies and being willing to pivot when necessary is critical. While some methods may yield immediate results, others may require patience and adaptation. It’s about finding that balance.” — Tom Waterhouse, CIO, Waterhouse VC
Latest News
A Decade in iGaming: From Newcomer to a CMO
Wow, time flies! Can’t believe it’s been ten years since stepping into the exhilarating world of online gambling – a field that initially seemed like a short-term stint quickly turned into a new-found passion.
Moving to Malta, and eventually finding a home in Tallinn, I’ve had the privilege to watch the highs and lows as well as the many progressions and transformations. Today, I am proud to form part of the Mr. Gamble team that is ambitiously expanding into new markets, and pushing the boundaries.
From Customer Support to CMO
My journey in iGaming kicked off in Customer Support at Betsson – a leap from my telecom sales management role back in Finland. While this move puzzled my family and friends alike, it was a necessary step. Over the months and years, I worked my way up through various roles including Affiliate Coordinator, Affiliate Manager and Head of Affiliates, learning the various intricate parts of the industry, while at the same time adapting to new technological changes.
One thing is for sure, the iGaming industry is a fast-paced one, and each role has helped me to thrive and adapt to the various changes. Flexibility is key when working in this industry.
Venturing into Entrepreneurship: My Own Affiliate Business
Following many years of corporate experience, I took the leap to start up my own affiliate business with the aim of creating my own business from scratch. Handling everything from SEO and content strategy to fostering brand partnerships and growth strategies gave me an overall view of the affiliate industry’s many complexities. This entrepreneurial journey instilled insight and resilience, especially in terms of the value of the diverse skill sets found within a team.
By 2023, I joined Mr. Gamble as CMO, bringing my own entrepreneurial experience into this company’s growth strategy. Drawing on my background in SEO, content management and brand development and alongside a knowledgeable team, we have successfully strengthened Mr. Gamble’s presence in established markets, while also setting our sites on new markets.
New Markets and New Possibilities
Since the online gambling industry is continually evolving and expanding, it also brings with it a surge in growth when it comes to new and emerging markets. While we have made huge strides in launching Mr. Gambe USA, we are also eyeing promising regions in Asia, Latin America and Africa, where digital adoption and regulations are evolving creating new opportunities.
As we continue to solidify our presence in the US, these emerging markets represent the next frontier.
An Ever-Changing and Evolving Gambling Industry
Over the past decade, the online gambling industry has quickly evolved from a somewhat fragmented field to a high-powered professional space. Conferences and expos, once informal gatherings have become hubs for talent.
Events such as SiGMA, SBC, iGB, NEXT.io and Hiphter Events today celebrate the progression of iGaming, while highlighting the various advances in technology and market inclusivity.
The shift toward hybrid work in recent years has also paved the way for industry shakeups. While digital operations are convenient, the importance of face-to-face meetings and connections remains. In an industry highly reliant and built on personal relationships, meeting in person strengthens partnerships and opens doors to new opportunities.
A Bright Future for Mr. Gamble
As CMO of Mr. Gamble, I along with the team are committed to expanding our brand’s influence, not only in traditional markets, but also in new and emerging ones. iGaming is constantly evolving and our strategies must evolve too, adapting and driving on the windy road to success. This entails adapting to changes in technology, user behaviour and experience, and most importantly navigating regulatory landscapes.
Of course, Google’s frequent algorithm updates keep us our our toes, pushing us to refine our approach to stay competitive and ever more relent.
Reflecting on the last 10 years, I am energised and optimistic for the future. With a talented team and untapped markets in tow, Mr. Gamble is well-prepared for substantial growth and impact. Here is to the journey ahead and to everyone – mentors, peers, and friends who have been part of this rewarding path. The next decade holds great potential, and I look more than forward to what is yet to come.
Latest News
MAJOR LEAGUE BASEBALL SELECTS SPORTRADAR TO TRANSFORM PLAYER TALENT SCOUTING FOR ALL 30 CLUBS
Sportradar today announced a multiyear agreement with Major League Baseball (MLB) to offer unparalleled sports performance analysis of amateur baseball prospects, through its Synergy Coaching and Scouting solution, to the league and its 30 Clubs. This new partnership will revolutionize player talent scouting through Sportradar’s advanced, proprietary technology and highlights Sportradar’s commitment to delivering innovative and game-changing solutions to the league.
Under the agreement, MLB and its 30 Clubs will gain access to an unprecedented depth of player analysis and insights with event coverage expanding significantly, from 3,300 to more than 20,000 games – an over 600% increase. This includes college, international, professional partner leagues and leading amateur leagues, such as the MLB Draft League, the Appalachian League and MLB Develops events, and, for the first time, top high school events.
The Synergy Coaching and Scouting solution is uniquely positioned to address the player evaluation needs of MLB as it leverages Sportradar’s expertise ingesting and transforming millions of data points from video into detailed metrics, actionable insights and dynamic visualizations. This, combined with Sportradar’s AI-powered sports performance technology, enables Synergy to provide unparalleled, in-depth analysis of every player, play and game situation, and equips MLB and Club scouts with the information and insights they need to streamline the evaluation process, guide draft decisions and support the development of future MLB players.
“Sportradar’s cutting-edge technology, alongside our reputation as a trusted partner to leading US sports leagues, is driving the transformation of sports performance analysis,” said Eduard Blonk, Chief Commercial Officer, Sportradar. “Through Synergy we are pleased that we are expanding our relationship with MLB, equipping them with the deep data and insights they need to identify the next generation of players. We are eager to continue bringing innovative solutions to MLB.”
“We are excited to expand our relationship with Sportradar and ensure equal access to the Synergy video and data services for all 30 MLB Clubs. This platform has become a key resource for Clubs in the domestic and international scouting process and we look forward to continuing our work with Sportradar in the coming years,” said John D’Angelo, MLB’s Sr. Vice President of Amateur and Medical Operations.
Financial reports
Commercial Gaming Revenue Growth Continues in Q3 2024, Driving Industry’s 15th Consecutive Quarter of Growth
U.S. commercial gaming revenue reached $17.71 billion in Q3 2024, the industry’s highest-grossing Q3 on record, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker. This makes Q3 2024 the industry’s 15th consecutive quarter of annual revenue growth, with September marking the 43rd straight month of rising year-over-year commercial gaming revenue.
Through the first nine months of the year, nationwide commercial gaming revenue stands at $53.24 billion, pacing 8.0 percent ahead of 2023 and putting the industry on track for a fourth straight record revenue year.
In Q3 2024, 29 of the 35 commercial gaming jurisdictions operational last year saw increased year-over-year revenue. This growth resulted in an 8.9 percent year-over-year increase in state and local taxes tied directly to gaming revenue, with commercial gaming operators contributing $3.79 billion in taxes across the quarter.
Quarterly revenue from land-based gaming – encompassing casino slots, table games and retail sports betting – totaled $12.56 billion, 0.62 percent lower than Q3 2023. Meanwhile, combined revenue from online sports betting and iGaming totaled $5.14 billion in Q3 2024 as online gaming made up 29.0 percent of commercial gaming revenue, a significantly higher share than in Q3 2023.
Looking at each sector in Q3 2024:
- Traditional Gaming: Traditional brick-and-mortar casino gaming generated quarterly revenue of $12.38 billion, a contraction of 0.9 percent year-over-year.
- Legal Sports Betting: Americans legally wagered $30.3 billion on sports, generating $3.24 billion in quarterly revenue (+42.4% YoY). Recent market launches in Kentucky, Maine, North Carolina and Vermont contributed to this growth.
- iGaming: iGaming generated $2.08 billion in revenue, marking a 30.3 percent year-over-year increase.
“Q3 2024 continued gaming’s momentum from the first half of the year, with online casino and sports betting driving strong growth. At the same time, new brick-and-mortar casino openings bolstered traditional gaming, which still accounts for the bulk of industry revenue,” said AGA Vice President of Research David Forman. “More than a quarter of commercial revenue now regularly comes from online sources, raising the importance of continued sustainable growth with consumers in those states.”
-
Latest News7 days ago
Bragg Gaming Group Announces Record Third Quarter 2024 Revenue of Eur 26.2 Million (USD 29.3 Million)
-
Latest News3 days ago
Full House Resorts Announces New Leadership for Rising Star Casino Resort
-
partnerships7 days ago
Tin Lizzie Gaming Resort Partners with Quick Custom Intelligence for Next-Level Gaming Experience
-
Latest News3 days ago
Arizona Department of Gaming Investigation into Illegal Gambling Leads to Record-Breaking Firearms Seizure
-
Latest News7 days ago
Evolution Group Announces Partnership Extension with FanDuel Casino
-
eSports4 days ago
Influencers, Content and eSports: Unleashing the Power of Dynamic Strategies in the eSports Ecosystem
-
Latest News7 days ago
EVERI STOCKHOLDERS APPROVE ACQUISITION BY APOLLO FUNDS
-
Compliance Updates7 days ago
Massachusetts Gaming Commission Launches Official Seal of Approval