Sustainable iGaming ventures: Strategies for long-term success
Can online gambling companies like casinos build a sustainable business about the environment and growth? Let’s find out.
The gaming industry has seen a spurt in growth in recent years. Websites like https://icecasino.com/ro are on the right track, but then most of them are offering essentially the same things – table games, slot games, welcome bonuses. One cannot help but ask: how should iGaming companies build sustainable ventures?
From crypto casinos to the metaverse and digital tokens and NFTs, the iGaming industry is shifting its focus, and it is about time to discuss ways by which they can start building better gaming infrastructure for their services
What Is sustainable growth?
Sustainability refers to two things. The first one is about operating a business without harming the environment. This type of sustainability also includes the impact on society, a community, or people.
For example, a business that uses too much power, meaning it is burning tons of fossil fuel—as such, its carbon footprint is too high that it poses a threat to the environment.
The second meaning of sustainability is about business growth. It has something to do with scaling the business or growing its revenues and customer base.
In addition, sustainable growth is the result of how a company hires, where it operates, how it markets its goods and services—everything that will make the company bigger.
How an iGaming company can become sustainable
There are four main areas that iGaming companies can focus on to ensure sustainability. These are:
- Understanding growth potential
- Avoiding high customer acquisition costs
- Targeting underserved markets
- Using renewable energy sources
1) Understanding growth potential
The first step to a sustainable business is to understand what markets to penetrate and how big you can become. In the iGaming industry, this limit is typically imposed by the government because casinos can only operate in certain jurisdictions.
For example, the UK Gambling Commission may only allow the casino to operate in the UK and not in other countries in Europe. This license is surely going to cause some setbacks as far as growth is concerned.
However, the number of countries in which a casino can operate is not the only growth focus area. Here are some more:
- Types of games.
- Devices.
- New technologies.
A casino can eventually branch out and offer a lottery; there are even casinos that eventually became sportsbooks. For devices, casinos can offer their services on both mobile devices and PCs. In addition, they can start offering through VR devices.
2) Avoiding high customer acquisition costs
The second strategy for growth and sustainability is the reduction of customer acquisition costs. Most of the time, businesses rely on social media marketing to attract new players. This method, however, is expensive.
Here are some more ways to acquire new customers:
- Streaming
- Affiliate marketing
- Promotions
- Loyalty programs and referral programs
Affiliate marketing is a process where a casino gives marketers a commission for every new player they refer. In this setup, it is the affiliate marketer who has to spend money, time, and effort to acquire customers for the casino.
Affiliate marketers do not get paid on a salary basis. They only earn a commission for every referral who placed wagers in the casino.
Promotions are common nowadays, but casinos must ensure that they are on top of these offers, meaning that they must consistently think of ways to attract new players (without marketing expenses) and how to retain their current customer base.
3) Targeting underserved markets
Another growth potential for iGaming companies is to target markets that nobody seems to be servicing. For example, countries in Africa are underserved when it comes to gambling. Other countries in Asia do not have a lot of options when it comes to online gambling.
This venture will certainly require a new license. Even so, the cost of this license is paltry compared to the potential profits that the company could rake in.
4) Using renewable energy sources
Finally, part of sustainability efforts should be the reduction of carbon footprint. Tech companies can achieve this by using renewable energy sources. For one, they can use solar panels for their electricity, not necessarily 100%, but at least part of it.
They can also work with server hosts who advance sustainability efforts by carbon footprint reduction. In addition, gambling corporations can choose to implement digital currencies or cryptocurrencies only if the tokens or coins are environmentally sustainable.
Sustainability is the new mantra of businesses today. With it, companies from leading countries are focusing their attention on using renewable energy or at least finding ways to reduce their carbon footprint.
As far as growth goes, they are on track to developing products and services that can reach more people. The good news is that we can all expect better experiences as the gambling industry is also looking into using new technology to create new games.
