Navigating the Changing Landscape of U.S. iGaming: 5WPR’s Insights from SBC Summit North America 2024

Last week, 5WPR’s Gaming and Gambling team attended SBC Summit North America 2024, and one thing is clear: the U.S. iGaming market is at a crossroads. With overseas companies questioning the feasibility of doing business in the U.S., and giants like 888, Kindred, and Unibet scaling back operations, the landscape is evolving rapidly. Here’s a recap of the key insights and trends shaping the future of iGaming in the U.S.

The Duopoly Dilemma

The dominance of FanDuel and DraftKings, which collectively control around 75% of the market, presents a significant challenge for other operators. Smaller players find it increasingly difficult to compete against these industry giants. The issue is compounded by distributed regulation, especially in the realm of iCasinos, creating a fragmented and challenging environment for expansion.

Regulatory Rollercoaster

While regulation remains a wildcard, the data underscores its potential economic benefits, particularly for land-based casinos. Despite the uncertainties, it’s more a question of when rather than if regulation will come into play. The hope is that regulators will collaborate to establish a framework that fosters business growth and consumer protection.

Focus on ROI

In the face of stiff competition and regulatory uncertainties, operators are doubling down on strategies to maximize Return on Investment (ROI). Traditional methods like large player bonuses are proving unsustainable and ineffective at fostering brand loyalty. Instead, there’s a shift towards delivering exceptional player experiences and building lasting brand loyalty.

The Rise of Gamification and Technology

A key takeaway from the summit is the emphasis on gamification and technological innovation. Companies like Soft2Bet are championing the integration of casual gaming elements into the iGaming experience. Additionally, there’s a growing reliance on technologies like Artificial Intelligence (AI), Machine Learning (ML), and big data to drive operational efficiency and enhance the player experience. However, these innovations also pose new challenges for compliance.

Seizing Opportunity

While challenges loom large, there’s no shortage of opportunities for savvy operators. By focusing on cost-effective player acquisition and retention strategies, embracing gamification, and leveraging cutting-edge technologies, companies can carve out their niche in the competitive U.S. iGaming market.

In the midst of these uncertainties, strategic public relations can be a game-changer for iGaming operators. PR can help establish and maintain positive brand images, fostering trust among regulators, players, and stakeholders. Public perception also plays a crucial role in shaping regulatory outcomes. iGaming operators can use PR to advocate for sensible regulation that balances consumer protection with industry growth. Proactively engaging with policymakers, industry associations, and the media can help shape the narratives around regulation, emphasizing its potential economic benefits and the importance of a level playing field for all operators.

These are just some of the immediate ways public relations can benefit the iGaming industry.

This year’s SBC Summit North America offered valuable insights into the evolving landscape of U.S. iGaming. While challenges such as regulatory uncertainty and market dominance by major players persist, there are clear paths to success for those willing to innovate and adapt. As the industry continues to mature, collaboration between regulators and operators will be crucial in shaping a sustainable and vibrant iGaming ecosystem in the United States.

Get in contact with 5WPR to discuss what these insights mean for your company and how our strategic approach can help you excel within the industry.