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Exploring the strategic expansion of iGaming brands into diverse international markets

Tuesday, February 20th 2024 - 15:17 UTC
Full article
Photo: Unsplash
Photo: Unsplash

Due to global integration and rising interest in diverse entertainment options, numerous regions worldwide are embracing iGaming. This trend opens up opportunities for operators and businesses to tap into the lucrative multibillion-dollar market.

For the iGaming industry, venturing into new markets demands thoughtful strategies. This article explores different approaches iGaming brands use, focusing on strategic partnerships and company acquisitions as pivotal tools for international expansion.

Strategic partnerships

Entering a new market can be challenging for iGaming brands, especially if they aren't familiar with how things work in the region. This is why, instead of expanding into unknown markets alone, these companies may penetrate new targets by forming strategic alliances with other brands already operating in such markets.

A worthy example is the Hollywood Online Casino. Hollywood Online Casino was only available in Pennsylvania until it revamped and formed partnerships with Resorts Online Casino, PENN Entertainment, and ESPN. Since then, Hollywood Online Casino has entered several US states through these strategic alliances, including New Jersey, Michigan, and West Virginia.

They're also trying to solidify their presence in these new regions by offering really good Hollywood casino promo code options so that players in these states can take advantage of their bonuses and become repeat customers. Through strategic collaborations and partnerships, brands access local networks, knowledge, expertise, and resources, making it easier to function in an unfamiliar environment.

Acquire other companies

While partnerships involve temporary collaboration between two different brands for shared success, acquisitions involve the legal merging of two entities. Acquiring a company provides the acquirer immediate access to new markets, products, staff, skillsets, and intangible assets such as goodwill, as well as research and development capabilities.

A good example is DraftKings' recent move to acquire Jackpocket for $750m to expand into the US digital lottery market. Although this deal is expected to be concluded in the second half of 2024, reports have it that this acquisition will improve DraftKings' position in the iGaming industry as they'll be able to leverage the cross-selling capabilities and customer acquisition engine of Jackpocket. We've also seen similar moves in Microsoft's acquisition of Activision Blizzard for $68.7 billion.

Expanding into new markets through acquisitions involves strategic planning. Brands first identify target companies aligned with their goals, assess their market presence, and ensure compatibility with existing business structures and future plans. Most acquisitions are subject to regulatory approval and customary closing conditions. Therefore, brands ensure that they conduct thorough due diligence to evaluate financial health, potential synergies, and cultural fit before making a deal.

Developing a clear integration plan and effective communication with stakeholders is crucial throughout the process to maximize the benefits of the acquisition and foster trust and alignment.

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Photo: Unsplash


iGaming content localization and cultural adaptation

Penetrating new markets for iGaming brands goes beyond implementing the most attractive bonuses and competitive spreads. It requires a properly executed marketing strategy that's localized and tailored to the unique cultural context to which the new target audience can relate.

It's important to ensure that the marketing messages and assets used to enter a new market are culturally adapted and localized to avoid sending mixed or wrong messages that may damage the brand image. Localization and cultural adaptation is more than just translating existing content or marketing materials to the native language.

It involves modifying the brand's overall approach, visual assets, and advertising language to reflect, respect, and resonate with the local culture of your target market. For instance, in China, most iGaming brands use red in their visual assets because red represents luck in that region. Localization and cultural adaptation have proven to be useful keys for unlocking new iGaming markets.

 

 

Tags: gaming.

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