Successful Casino Adaptation to Changing Market Conditions

Experts of the Online Casino Market studio explain how gambling companies act in the face of transformations in the entertainment niche. You will learn why it is important to take such changes into account and what strategies will help business owners not only stay afloat but also become industry leaders.

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Reasons to Adapt Projects to Market Requirements

Gambling is a dynamically developing sector of the economy. Its capitalisation is affected by various factors that need to be considered when choosing the right strategy, forming a budget, and planning an advertising campaign.

The ability to adapt to transformations plays a key role in the modern casino sphere. Otherwise, companies will be significantly inferior to competitors and lose ground and current income.

This also provides an opportunity to look at the business from a different angle: understand what advantages the vendor has, and in what areas it is outperformed by other brands.

Most experts are convinced that the key to the prosperity of gambling firms in the face of constant changes is the ability to quickly adapt to a dynamic market environment and new requirements.

Factors Affecting the Industry

According to the concept of economist Michael Porter, 5 main forces influence any business.

In the entertainment niche, these are:

• customers with their needs and preferences;
• competitors who can cover all current customer requests;
• providers and the solutions they supply (content, payment services, and security software);
• beginning operators who have just launched iGaming projects or are planning to enter the market;
• other factors (legislation, taxation, advertising policy, traditions, and culture).

Analysis based on Porter's concept is effective in many sectors of the economy, be it physical sales or the online segment. The method allows entrepreneurs to develop the action sequence, thanks to which casino brands will take a stable position in the industry.

When It Is Necessary to Adapt to Changes

The most common situations in gambling:

1. Transformation of legislation. Today, most jurisdictions are tightening the regulatory framework in the entertainment field. The trend is especially noticeable in Europe, where authorities are gradually introducing restrictions on advertising, sponsorship, credit card transactions, and other activities. Another common phenomenon is a tax increase, which also forces providers to change their current business strategies.
2. Expansion into new markets. This is the so-called vertical growth when a company scales its operations by launching an iGaming platform in a new country. To make relocation successful, it is important to adapt a project to the requirements of the chosen region. Almost all aspects need adjustment, from games and bonuses to the supported settlement methods.
3. Diversification of activities. This is horizontal growth in the case of firms expanding due to the launch of new casino areas. Most often, bookmakers add slot machines and cards, and owners of gaming sites begin to accept bets on sports events.
4. Technological development. The emergence of innovations also requires entrepreneurs to be able to adapt to changes. The entertainment sector is launching new service algorithms, automating routine tasks, testing secure payment options, and implementing many other solutions.

The main goals of operators are the following:

• attraction of investments;
• reduced operating costs;
• the opening of access to highly qualified personnel;
• obtaining tax and legal advantages.

Successful Adaptation Strategies

Let us consider how representatives of the gambling industry can prepare for the upcoming changes.

Technological Development

Investment in innovations is a step forward, an opportunity to stand out against competitors, and a chance to occupy a stable niche in the market. Providers that ignore such a trend may lose their clients.

The benefits of using advanced achievements are:

• improvement of gaming products and services;
• increase in the efficiency of business processes (from the maintenance of users to advertising and bonuses);
• protection against risks.

Blockchain is one of the most popular technologies in the world, and it has been found to be applicable in the entertainment sector. Operators connect cryptocurrency as a payment method and use smart contracts to create new game mechanics or exclusive bonuses.

Common innovations include programs based on artificial intelligence and big data, as well as slots with support for virtual and augmented reality, and fault-tolerant PWA applications. Investors place their hopes on the development of 5G and cloud storage.

Flexibility and Readiness for Change

Providers that prioritise manoeuvrability can swiftly respond to transformations in the external environment. They make decisions quickly and easily adapt to new market conditions.

Adjustable structures and processes can be built via:

• update of current business strategies;
• studying alternative development options;
• preparation for changes in advance.

Effective Cooperation

Well-known brands build partnerships with other companies, young iGaming startups, universities, and innovation centres. Support for charity funds is also a popular type of interaction. As a rule, these are non-profit organisations that deal with problems of ludomania, social inequality, and environmental pollution.

Working with partners allows operators to:

• increase audience reach;
• expand the range of products or services;
• share experiences and resources;
• find new opportunities for business development.

A common phenomenon in the gambling industry is the involvement of public figures in advertising campaigns. These are mainly famous bloggers and athletes (less often — representatives of science and culture).

Mergers and reorganisations are typical for the casino niche. The unification of several brands into a single iGaming enterprise allows project owners to solve many tasks, including:

• an increase in the liquidity;
• debt on loan repayment;
• capture of a significant market share.

Thanks to such a procedure, many providers rise in the rankings or even become monopolists in the selected segment.

Advanced Analytics

Entrepreneurs use big data to predict future trends and study the behaviour of players or competitors. Careful research helps businessmen make informed decisions and prepare in advance for upcoming changes.

Constant monitoring of KPIs (key performance indicators) makes it possible to:

• identify trends and patterns;
• see weaknesses in business processes;
• evaluate the effectiveness of marketing campaigns in dynamics.

Employee Training and Development

Investment in human capital is a win-win strategy in gambling. Thanks to it, it is possible to create a team of top-notch specialists ready for changes and other challenges.

Continuous staff training is also an excellent cost-reduction method. In the long term, providers cut spending related to turnover, poor customer support, and incompetent actions of individual employees.

Examples of Successful Adaptation to New Market Conditions

Let us consider the most famous cases.

Evolution

Mergers of large firms and their takeover of smaller iGaming startups are a frequent phenomenon in the casino segment. The Swedish provider is a leader in this area.

As a parent company, Evolution manages such subsidiaries as:

• Ezugi;
• NetEnt;
• Red Tiger;
• Big Time Gaming;
• Digiwheel;
• Nolimit City;
• Livespins;
• Galaxy Gaming.

The corporation's first deal was the acquisition of Ezugi in 2018. The largest purchase of 90% of the shares was the Swedish NetEnt provider. The reorganisation took place in 2020 and cost the enterprise a record $2.1 billion. At the moment, this is its most expensive merger.

The chosen business strategy brought the company a lot of advantages:

1. Coverage of various bases and channels. These are solutions with live dealers, online slots, as well as table and card games. Moreover, the brand supplies betting platforms and software for land-based locations.
2. Broad representation. The concern has licences in 54 jurisdictions, including the prestigious American market. For example, the purchase of Ezugi allowed Evolution to become a monopolist in the live casino segment in the US. This is the only firm that has certificates for broadcasts in 5 states at once.
3. Struggle with competitors. At one time, the manufacturer’s strong rival was the DigiWheel European studio. It supplied digital wheels of fortune with HD screens and other technical functions. The merger allowed the company to quickly weaken its opponent and develop its unique line of interactive live solutions. Crazy Time and Dream Catcher are the most famous products in this category.

Despite the acquisition spree, many brands continued to grow independently. They have maintained their authenticity, author style, and original approach to content creation. For example, NetEnt remains the leader in the production of VR casino options to this day, and Big Time Gaming holds the lead in the development of slots with non-standard mechanics.

888 Holdings

At the beginning of 2023, it faced difficulties caused by increased competition and changes in the key markets’ rules. First of all, these are Ireland and the United Kingdom. Last year, the local authorities presented new regulatory principles. A few months later, the provider formed a business strategy called the Value Creation Plan (VCP).

Major innovations of 888 Holdings include:

1. Reorganisation of the operating model. The changes are aimed at reducing the company's current expenses by 30% per year. Among the proposed measures, we can name freezing of the dividend payout for 36 months, rejection of the dot-com market or support for dubious startups, and more cautious maintenance of an advertising campaign.
2. Management changes. In October 2023, the shareholder council appointed Per Wiederström as the new CEO. The transformations occurred 6 months after the previous executive of 888 Holdings resigned. It provoked a 4% increase in shares.
3. Exit from unprofitable markets. The provider plans to reduce costs in regions that do not generate the expected income and increase its presence in such key jurisdictions as the USA, the UK, and Ireland.

The business strategy chosen by 888 Holdings has already brought the first positive results:

1. In the first quarter of 2024, the vendor’s revenues increased by 38% compared to the same period in the previous year.
2. Earnings before interest, taxes, depreciation, and amortisation have more than doubled (they reached £261.3 million).

Despite the achievements, the concern’s operating expenses (advertising, salary payments, and maintenance of land-based gambling halls) are still high.

The Main Things about the Adaptation of Brands to Market Challenges

The ability to respond to changes is an important quality for casino operators.

Key aspects that entrepreneurs need to take into account:

• Economists identify 5 factors that have the greatest impact on the work of the owners of gambling projects. These are the level of competition in the industry, the uninterrupted work of software vendors, customers with their preferences, changes in legislation, and other issues.
• Effective adaptation strategies include technological development, investment in staff, and diversification of activities. Tremendous benefits can be derived from the use of big data and productive partnership-building.
• A good example of successful adjustment to the industry challenges is the work of Evolution, 888 Holdings, and other enterprises.

The Online Casino Market studio is your reliable and time-tested business associate. We offer a large selection of ready-made solutions for the gambling industry, from turnkey digital platforms to licensed White Label resources.

You can also use a wide range of services or create an exclusive project using our universal constructor.

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