“The biggest external blocker is competition, but also bloating licensing regulations”

When you think back to your conversations with operators, what do they complain about the most?

During discussions with casino operators there are mainly two groups of problems. The first – what we call ‘internal blockers’ to casino growth, and the second – external ones – result of the casino’s business environment.

The internal blockers mentioned by operators most often include problems with processes within the company, technology and operation of the platform itself – site too slow, security issues, over-complicated, registration process being too long, and so on. Wrong allocation of budgets also falls into this category: overspending on player acquisition or burning budgets for jump-starting player retention. So far, everyone that has been focusing on obtaining new players is facing the same issues: costs getting too high. Nevertheless, in most cases, those budgets are set up pretty well.

Player retention, however, is a whole different story: the ever-increasing costs of promotions, upwardly spiraling bonuses, and rising affiliate expectations are causing operators to record higher and higher retention costs for players without significant increases in their LTV.

Of course, the biggest external blocker is competition, but also bloating licensing regulations. The combination of ever-increasing requirements put on operators, which worsens the player experience, is causing an outflow of players into the iGaming gray zone. This can be observed in Germany.

What is the biggest blocker?

I see we’re getting straight to the point, which is excellent. From our experience, the lack of consistent connections between different areas is the most significant thing slowing down business growth, often not obviously connected.

Does a slow website lower a player’s LTV? Yes.

Does poor communication between IT and the first line of support impact retention rates? Yes.

Can server infrastructure increase marketing costs? Absolutely.

Until a business learns to look at its platform holistically and comprehensively, the blockers will always hinder platform’s growth. And I mean holistic – it’s time for all operator company departments to work together. Too often have I seen mocked cooperation instead of real common goals and working hand in hand.

Not all operators have such a comprehensive company structure. Surprisingly, this makes the situation even more difficult since operators need to either synchronise various service providers or introduce know-how from different deep and difficult areas into existing structures.

You’ve already mentioned that internal blockers can negatively impact player retention and loyalty. Can you explain how this looks in practice?

As I mentioned, the most significant blockers come from inefficient workflows within the company. It’s difficult to tell someone, “Hey, your platform has a few problems to work out. You don’t have a solid foundation.”, but the good news is that it’s simpler to fix the mistakes on your own turf. This still requires a certain openness to negative feedback.

Operators often focus on advanced methods to increase retention instead of taking care of fundamental aspects of the platform. Problems such as the platform not being adapted to different devices, random errors appearing at random moments, certain features or the entire website being unavailable for no reason, a poorly designed onboarding process for new players and lots of other elementary mistakes like this are still happening too often.

Many operators think these elements work on their platform just fine. Even more, they would argue about how well-optimized they are. But they don’t regularly monitor, analyse and implement fixes. Instead, they assume that everything is working correctly, and we know that “assumption is the mother of all failures”. Contrary to popular belief, technology degrades if not maintained properly, and it frequently happens unnoticed. These problems are one of the main reasons for player frustration, leading to a decline in player loyalty.

As Mark Twain said, “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.“. When I think about it, it’s hard to imagine getting the entire competition to perform worse, right?

Most operators are struggling with these issues, and this is where you can find free money and sustainable solutions to improve retention. Improving the platform’s core features leads to long-term player loyalty and a better user experience, in contrast to investing in expensive, one-time promotional campaigns.

Why would technology ever slow down business? Shouldn’t it be the other way round?

Technology, processes, and people – all these elements can block business growth if they are not properly matched to the actual needs and goals of the company. It’s essential to recognize that just because a particular technology works well for one provider, it doesn’t mean it will fit seamlessly into your strategy. In today’s market, companies face a trade-off between expensive, time-consuming technologies and quicker, cheaper alternatives that may be riddled with bugs – finding the perfect balance is a significant challenge.

If the focus from the start is on local markets, with no plans for global expansion and a clear vision for the platform, opting for a white-label solution might be a good strategy. Ready-made platforms allow quick market entry by leveraging proven technology and player behaviour patterns. However, this convenience comes with a price: limited opportunities to create unique value propositions or stand-out user features. If “good enough” is the goal, there’s no reason to invest in costly custom solutions. On the other hand, if the ambition is to capture a global market, starting with white-label solutions can severely limit long-term growth potential.

Custom-built solutions offer greater flexibility, particularly in scaling, but this does not make them easy. Implementation can be smoother if there is a clear vision of what the platform is expected to achieve. Yet, costs, time and involvement required in this approach plays a significant factor.

It’s worth noting that technology is only a tool – one that is ultimately driven by people. The team behind your platform will largely determine whether barriers to growth arise. With white-label solutions, it’s common to hear complaints that even minor changes take too long or that the provider is slow to respond. The question then becomes: is the technology failing, or is it the business process itself?

In the case of custom solutions, building a platform from scratch without the support of experienced architects, analysts, or technology experts can also lead to delays and subpar results. Often, technology gets blamed when, in fact, the real issue lies in the lack of thorough analysis of operator needs at the outset, followed by a shortage of competent individuals managing the project on the provider’s side.

Okay, so on the other hand: how can tech developments, like AI and automation, help operators remove blockers?

AI and marketing automation or recommendation engines, facilitates personalisation and supports the LTV growth of players – these solutions can significantly help operators remove roadblocks, especially regarding player retention.

AI enables advanced analysis of site traffic and user data to better understand players’ needs and optimise their platform experience. AI is an ideal tool for working with large data sets and drawing conclusions way faster than humans. This could be used for providing personalised offers, predict player behaviour or quickly respond to players’ needs, which promotes retention. AI-based solutions are both practical and trendy, positively shaping players’ perception of the platform.

The development of server capabilities, monitoring tools, and the automation of operational processes are crucial to ensuring the stability and reliability of the platform. These technologies lay the foundation for removing blockers and enabling growth. They enable operators to respond faster to problems, better manage platform traffic and ensure players play safely. I’ve seen it too often that operators focus on obtaining sophisticated and expensive tools while the very basics are not taken care of.

What are your recommendations for operators to identify blockers early before they affect profits?

Control, continuous analysis, and rapid response to problems may seem obvious, but these actions are vital in removing blockages early and ensuring stable business growth.

Operators often overlook their mistakes, which makes it essential to start the self-awareness process by analysing inquiries coming into the support department. Players rarely write to thank for a great platform; they usually report difficulties and problems. It’s crucial to stand face-to-face with them and actively seek to resolve their objections.

After that, it’s a good idea to conduct audits. Regular technical, performance, UX or even SEO audits plus intelligent monitoring can quickly diagnose problems and identify weaknesses that require intervention. One effective method is to implement a mystery client program. Through regular testing with mystery clients, it’s possible to objectively assess what the player’s actual experience on the platform is like, allowing you to spot issues that may be omitted your team.

How can the business environment of platforms create additional obstacles?

On the one hand, we have ongoing legislative processes, and on the other, there are natural developments in the market, like mergers, acquisitions, and brand consolidations. Changes in laws and regulations can create obstacles, and they often do. In the German market, overregulation is so high that many users prefer to play in the so-called grey market, where the registration process is simpler and faster than with regulated operators. This shows that overly strict regulations may and will discourage players from using legal operators.

Moreover, operators must deal with huge costs related to following all the regulatory requirements. These costs include adapting to new regulations and rising taxes, licensing fees, and other financial burdens that ultimately reduce their profits. No one questions that responsible gaming is necessary. However, by creating too many barriers, regulators are in fact promoting the growth of the grey market.

Acquisitions and takeovers of suppliers, such as the recent EveryMatrix acquisition of FSB Technology, can change the reality for casino operators that use their services, though this isn’t always the case. After a takeover, new owners might change the supplier’s development strategy, which can affect the solutions’ functionalities. Loosing access to previous innovations or facing difficulties in getting technical support are two main difficulties operators face while mergers. Additionally, new owners may raise service prices, increasing the operational costs for casinos using white-label solutions and impacting their profitability.

Takeovers can also limit flexibility, as the new supplier policies might not meet the specific needs of operators, reducing their ability to adapt their offerings to local markets. Data migration issues may occur during mergers or acquisitions, which carry the risk of losing data or security breaches. Operators might need to verify their databases, leading to extra costs and time. Takeovers may introduce new regulations and operational procedures that operators must implement, requiring additional employee training and process adjustments.

Another consequence might be a decrease in market competitiveness. When a supplier takes control of too many operators, it can limit competition, making it harder for operators to negotiate contract terms and access innovative solutions. Changes in the supplier’s offerings or service quality can also affect customer satisfaction. If the supplier fails to meet expectations, operators may lose players to competitors.

What blockers do operators face when they merge systems or integrate platforms?

This question fits very well with what is currently happening in the market. Operators face numerous challenges when merging systems and integrating platforms, both in the player-accessible area and at the back-office level. Maintaining a consistent user interface and ensuring a consistent, positive player experience is a key issue. Simple errors visible on the surface – like asking for the same information several times – might be a nightmare underneath, requiring complex integration of different databases.

Operators must also ensure clear and consistent communication on and off the platform. In areas invisible to users, integrating databases becomes a challenge, unifying the information collected and analysed, and maintaining consistency in internal processes requiring precise management.

How does the situation look if an operator uses a white-label solution?

It’s tricky. Using a white-label solution may seem attractive at first – you quickly get a ready-made product that you can easily implement and get started. It looks like an ideal solution for companies needing to rapidly enter the market. However, as the business grows and the number of users increases, problems begin to arise.

First, there is a lack of flexibility. White-label solutions tend to be one-size-fits-all and tailored to a wide range of customers, which means there are limited options for modification. Operators facing technical issues or looking to implement custom features often lack the ability to do so. Even if the problem is reported to the provider, the process of solving it can be lengthy, with changes being made for some or even all operators using the same platform. As a result, by solving your problem, you gain no competitive advantage – all other companies using the same solution also gain the same improvement.

Another challenge is rising fees. The offer may seem profitable initially, but as your business grows, the provider raises costs. This usually happens when you increase turnover or need additional features or technical support. In addition, white-label providers often prioritize high-turnover operators, which means that smaller companies may have to wait longer for answers or support, and their problems may be less important to the provider. For smaller players, this means limited support and lower priority for service, which in turn affects business efficiency.

While I have highlighted the limitations inherent in the white-label solution and its technology, it’s important to consider the scenario in which the white-label provider simply sells its brand. In such case, operators are faced with a difficult reality. They have no say in whom they will work with or under what terms should move forward. Although they may believe they own their business, they suddenly lose control over critical aspects, leaving them vulnerable to external decisions.

What about when an operator wants to switch from a white label platform to another?

It’s good to start with both an internal and external analysis. The operator should identify the functionalities and processes of the current platform that are working well, as well as those that they and their players are unhappy with.

Formal matters should be checked. What does the current contract with the provider allow me to do? What data can I migrate and take with me, and under what conditions?

On the other hand, it’s good to see what solutions are being used by competitors who are considered industry leaders. If you add your needs and expectations for the new platform to these two lists, you’ll have a good foundation to create, for example, a features matrix list, which can be used to start gathering offers.

Okay, we already know that operators’ lives are not easy, and there is a lot of room for limitations and blockers, both internal and external. Do you have any tips that can help operators?

No systems or processes can manage themselves. Also, no solutions will work forever or fit every situation. My primary advice for any operator building their business on a platform is this: never assume that your initial plan will be the optimal solution or that it will function seamlessly over time.

Planning is crucial, but it must remain adaptable. Whether you utilize a white-label, turn-key, or custom solution, constantly assessing the situation is essential. What performs well today could become outdated or inefficient tomorrow as your business evolves or market conditions change. I’ve said it earlier, but regular testing, monitoring, and audits—along with external evaluations such as mystery shopper assessments—are vital to ensure the platform remains reliable and flexible. Operators should avoid believing that once a system or process is established, it will operate perfectly without intervention.

Moreover, operators must stay flexible and proactive. As the market evolves, changes in regulations, technological advancements, or shifting consumer expectations can swiftly make the initial configuration outdated. A commitment to continuous improvement will empower operators to avoid these challenges.

Finally, operators should emphasize communication and collaboration within their teams and with external partners. Open communication channels ensure that issues are identified early and resolved before they escalate into more serious problems.

Ultimately, no technology can substitute for poor planning or a lack of coordination, that makes the effort of individuals and thoughtful management crucial to the platform’s success.

What about when an operator wants to switch from a white label platform to another?

It’s good to start with both an internal and external analysis. The operator should identify the functionalities and processes of the current platform that are working well, as well as those that they and their players are unhappy with.

Formal matters should be checked. What does the current contract with the provider allow me to do? What data can I migrate and take with me, and under what conditions?

On the other hand, it’s good to see what solutions are being used by competitors who are considered industry leaders. If you add your needs and expectations for the new platform to these two lists, you’ll have a good foundation to create, for example, a features matrix list, which can be used to start gathering offers.

Each potential provider must compare different options fairly and thoroughly when estimating and choosing technology. This way, the operator has a chance to make an educated decision and will know the estimated implementation times in addition to costs.

The next step is to check whether changing the platform would give you a return on investment and better results than now. To do this, you need accurate information about the real costs related to the current platform (support costs, commissions, availability or lack of availability of the platform, and any losses associated with this, as well as costs related to the new platform). The same exercise should be done regarding potential profits.

Additionally, it would be best to have at least plan A and B in case the expected scenario doesn’t work out. For example, what if the profits don’t match expectations after a quarter of using the new platform? You must be prepared for such things too.