Navigating the North American online real-money gambling landscape is a formidable challenge for operators. The intricate web of state-by-state legislation can present challenges at every turn, and regulation is constantly evolving.
Brands face significant hurdles when entering the market, and even after a successful launch, they encounter stiff competition from industry heavyweights, as well as increasing player acquisition costs and marketing demands.
Social and sweepstake casinos present an enticing alternative for market entry into the US and Canadian territories. Operators able to navigate the state-level legal requirements and intensive third-party compliance reviews gain access to over 40 states and Canada.
That broad reach across such a wide territory also makes marketing across different platforms considerably easier, allowing brands to reach out to much larger audiences and build a strong reputation. Player acquisition costs are insanely high in the real-money scene as the big operators all compete for market share. By contrast, social casinos are not nearly as impacted by the marketing spend death spiral of traditional operators, making them a much more financially viable option.
America is a nation built on brands. We trust our favorite operators and companies because we know they can deliver a high-class product. This is fantastic for established brands, but it also makes establishing a new brand and building trust extremely difficult.
Social gameplay sites can be an extremely effective tool for major operators aiming to expand their presence and build trust in this wider market. Building that trust is crucial for casino brands, especially in the US market, where loyalty is fleeting outside the largest market leaders.
The social gaming industry offers proven legal and accessible pathways into the US market for online operators and presents opportunities for adjacent industries, such as entertainment, sports, or travel. Leveraging sweepstakes offerings, businesses in the entertainment, sports, or travel industries can tap into the market’s potential. Integrating a fully operational social gaming site with their service has the potential to generate substantial revenue streams and offer customers a new, exciting, and highly engaging entertainment experience.
Operators can also discover a lot about player demands through sweepstakes casinos. A game’s success on a sweepstake platform can provide operators with valuable information about its popularity, offering useful insights into its engagement rates. This data can be extremely valuable to both operators and developers, allowing the former to reconsider their gaming catalogs and the latter to refine their gaming output and make needed changes.
While the potential benefits of launching a social gameplay site are huge, the idea of launching one can be extremely daunting, especially for operators or brands unfamiliar with the US market.
Companies looking to enter this space will clearly require industry expertise and a dependable platform. With the right resources, the sweepstakes market’s potential is significant, but businesses must possess the means to capitalise on it.
Collaborating with established companies that already have a strong understanding of the industry could prove to be an exceptionally effective strategy. For instance, if a tribal casino with no prior online experience wanted to explore entering the social gaming arena, it could do so by establishing a partnership with a B2B platform that provides them with access to all the necessary tools and resources.
Social gaming is one of the most hotly discussed and exciting spaces in the online gaming industry, and we are just beginning to scratch the surface when it comes to its potential.
South Africa has celebrated a record year for gaming intake, as it reported overall gaming revenue of £2.58bn in the 2023-24 financial year.
Whilst the retail presence of the region continued to thrive, land based casino revenue remained steady as it grew by just 0.1%.
The growth of the overall gaming revenue was largely fuelled by a significant rise from the sports betting sector, which grew by just over 51%, amounting to a total of 60% of the overall revenue of the region.
In a recent interview with SBCNews, Chief Commercial Officer at SOFTSWISS, Max Trafimovich, shared his belief that the South African market could be the next Brazil in terms of growth opportunities.
According to Trafimovich, the potential for growth is only going to escalate as mobile penetration evolves. He added: “South Africa’s rising internet penetration and smartphone usage, as well as the burgeoning middle class, present a significant opportunity. Increased disposable income and a growing appetite for high-quality entertainment drive demand for igaming services.
“Needless to say, South Africa has a rich sports culture, particularly in soccer, rugby, and horse racing. Besides, the government is taking steps towards a more regulated and supportive environment for igaming, while the opposition has put forward their own vision of updating gambling regulations. This shows that local elites are paying attention to our sphere.
“These combined factors position South Africa as a promising market for igaming expansion, and we are keen to capitalise on these opportunities.”
These predictions were echoed by William Scott, Chairman of Golden Matrix Group, who emphasised that close collaboration with regulators has been integral to the success of the region’s gambling sector.
He also predicted that of all the African markets, South Africa will be one that continues to thrive specifically as online casino regulation is rolled out.
He stated: “South Africa will continue to be a market to watch as the online casino market (and regulation) continues to develop. Other markets in East and West Africa will develop with new regulations that make it easier and more defined on licensing for operations.”
Trafimovich also laid out the key obstacles for the market moving forward as he detailed there are still areas with limited connectivity.
He added: “Ensuring reliable internet access across the country will be crucial for the growth of any online business activity. Additionally, addressing issues related to payment processing and financial inclusion will help facilitate smoother transactions for players and operators alike.
“The regulatory landscape for gambling in South Africa is intricate. The country is divided into nine provinces, each with its own regulatory body operating under the national framework set by the NGB. These provincial bodies are responsible for licensing various gambling activities, including online sports betting. Operators must navigate the specific requirements and licensing options within each province’s regulatory framework.
“One notable aspect is that a sports betting licence from any single province generally allows operators to accept online players nationwide. However, it’s important to understand that while sports betting is widely accepted, traditional online casino games that don’t conform to local regulations are banned in all nine provinces. So, regulatory peculiarities can pose challenges for international companies looking to enter the market.”
