Industry predictions for 2023: US online casino's expansion to falter and the rise of marketing's micro-influencer

Benjie Cherniak, investor and advisor 

Personalisation and product differentiation will become key buzzwords 

As the US market nears its five-year anniversary in 2023, the mentality will shift more concretely from opening as quickly and in as many states as possible to augmenting the deliverable and consumer relationship. How can operators personalise the user experience to maximise their relationship with existing players? How can operators differentiate their offering in a way that will help them not only retain market share but tap into new audiences? These are questions that operators will seek to answer, be it via internally driven solutions or more likely with assistance from third-party specialist providers.

A new wave of real money gaming operators will begin to make their mark  

In five to 10 years from now we will look back at 2023 as the year in which the real-money sports gaming experience redefined itself by targeting an emerging generation of punters. In fairness, this trend began in 2022 with the social startup Dabble making huge strides in Australia, and the likes of SportTrade, Prophet, and Mojo launching their unique offerings in the US.

In 2023, Fanatics, Underdog, and Betr (US) will enter the legislated US gaming market, the latter already having done so in Ohio as the new year started. While these B2C startups all differ from one another in a variety of ways and may not all ultimately succeed, the common thread is they offer their users a real money gaming experience that deviates from today’s norm and in doing so target audiences that in large sit outside the current sports betting ecosystem.  

Mainstream adoption of US online casino will continue to take longer then expected  

Given how quickly we have seen mainstream adoption of sports betting across the US on a state-by-state basis, it is surprising that legislated online casino is only offered in six states, particularly given how massive an opportunity it represents.

This dynamic does not seem poised to change in 2023, meaning that sports betting will continue to garner not only the lion’s share of headlines but the majority of state legislative acceptance as well. Online casino will surely have its day as there is far too much money at stake for that not to happen but for the time being momentum continues to move at a slower pace than it should. 

Joe McCallum, director of gaming at Yolo Group

Bookmakers to focus on engagement during a quieter year

With no major men’s football tournaments in 2023, operators will need to look to engage customers on a regular basis. The last couple of years have been a bonanza for sportsbooks, with the Euros, Copa America, Olympics and World Cup all taking place in the space of 18 months. 2023 will be a quieter year, so we need to get back to basics and offer a compelling proposition to customers even in the absence of a flagship global event.

In practice, this means delivering the wide range of events and markets players have come to expect, while also expanding offerings in fast-growing areas, particularly esports. On the crypto side of things, 2022 was obviously a challenging year, but we remain steadfastly optimistic when it comes to the value this technology can bring to the player experience. Sticking to these fundamentals is what will ensure a successful 2023.

Micro-influencer marketing to really take off

Influencer marketing is evolving rapidly. Of course, this isn’t restricted to online gaming, but both sportsbook and casino brands need to pay attention if they are to successfully make use of the channel. The partial ban on Twitch gambling streams shows just how quickly the landscape can change. An entirely new acquisition channel which grew at an unprecedented rate and was then shuttered within a couple of years. We’re increasingly working with influencers in key markets on a regional basis, because we find it is a great way to build trust and brand locally.

Micro-influencers are another interesting area; much of the attention may be on the biggest names, but if you can execute a large-scale campaign with micro-influencers it is entirely possible to gain similar results on a fraction of the budget. What’s important is that we equip these micro-influencers with the tools and experiences they need to maximise their sphere of influence. It’s the only way to ensure a successful campaign.

Content will continue to be king in 2023

Sportsbooks need to put engaging content at the heart of their offering. We’re increasingly seeing customers using sportsbooks not just as somewhere to place a bet, but as a hub for news and views around the sports they love. This is both the case for pre-match and in-play, where sportsbooks can often be the best place to second-screen for in-depth data and statistical analysis.

For Sportsbet.io, our Clubhouse brings together news, promotions, video content, podcasts and more with this in mind. In 2023, I expect to see operators exploring new and innovative ways to become more than simply a betting product. With CPAs on the rise, retention has never been more important, and that means taking steps to genuinely engage with customers and offer them something of value. It’s a challenge we’re all working on right now.