How Small Businesses Can Thrive in the World's Largest iGaming Market

With increasing discussions about Great Britain’s gambling market nearing saturation, many companies are shifting their focus to other markets.

However, according to Leadstar Media’s team leader Ben Smith, smaller brands still have the potential to thrive among bettors if they employ smart marketing strategies.

Ben Smith, who works with Leadstar Media in overseeing their UK, US, and Canadian products, believes that even in the highly competitive British gambling market, smaller brands can succeed by using targeted and efficient marketing tactics. Leadstar Media, a Stockholm-based affiliate company, operates more than 50 websites in over 25 countries, making it well-positioned to understand market trends.

Smith acknowledges the challenges of operating in a market with over 2,400 licensed operators. According to the Gambling Commission, remote licensees generated £6.9bn in gross yield from April 2020 to May 2021, an 18.4% increase despite the pandemic. Despite this, the market remains tough for smaller brands. Smith argues that it’s a “waste of time and budget even trying to explore competing with the big brands” using traditional advertising methods such as print ads or event sponsorships, where larger companies dominate.

Instead, Smith advises smaller brands to focus on affiliate marketing to reach their target audience without overspending. Affiliates drive traffic to gambling operators, and Smith explains that this approach is more cost-effective. “In doing so, small businesses are being exposed to exactly the people they are looking for while minimising the costs,” he says.

Although the reach may be smaller than traditional advertising, the conversion rate is higher and more measurable. “Brands have more control over their cost per acquisition and can be legitimised by being placed right in among some of the top online bookmakers.”

Leadstar’s website, Bookiesbonuses.com, shows that smaller brands are often preferred by customers who are searching for new betting options. Smith notes, “What lots of these people really want is new brands to sign up with and ultimately claim the welcome bonus.”

Once customers are drawn in, retention depends on the quality of the product. Smith emphasizes, “The brands that actually have a quality product have been able to retain those players and see longer-term value from them.”

While established brands like William Hill, Betfred, and Entain brands (such as Ladbrokes and Coral) dominate the market, Smith argues that smaller operators can succeed by building strong affiliate networks and scaling sustainably. “These smaller brands might not be able to afford a television slot right before a Premier League fixture, but they can put the hard yards in and develop relationships with blogs, influencers, and any platform where there is the potential to gain exposure in a logical way,” he explains. By focusing on SEO strategies and finding the right partners, smaller brands can “pick off low-hanging fruit which the bigger brands are ignoring.”

Bonuses also play a crucial role in attracting customers, especially in a competitive market. “By appeasing bonus hunters, you at least capture a large chunk of your potential customer base,” says Smith. However, retention depends on the overall quality of the product. He argues, “Bonus hunters would only go back to the higher-profile brands if there was no reason to stick around on any given smaller betting site.”

To keep players from returning to larger brands, Smith suggests offering something unique. “Whether it’s to do with the website layout, promotions, in-play betting features, odds boosts, or any of the other areas in which you can win, you can avoid losing all those players to the big boys,” he says.

However, the gambling industry is not without its risks, especially with tighter regulations on the horizon. The upcoming Gambling Act could affect customer value and affiliate commissions, adding further pressure on small businesses to adapt to new measures such as deposit limits and affordability checks. Smith stresses that smaller companies need to be savvy about where they invest their money. “Through partnering with affiliates, they can still be among the most popular in the industry,” he says.

Ultimately, while the market may be saturated and the competition fierce, smaller brands can carve out their place in the industry with a focused approach, strategic partnerships, and a quality product.

By fLEXI tEAM