The UK online casino industry is a dynamic and lucrative market, attracting numerous operators aiming to establish a foothold.
However, the journey is fraught with unique challenges for independent casinos – those not affiliated with larger media conglomerates or reliant on turnkey white-label solutions.
These standalone entities must navigate stringent regulatory landscapes, intense competition, and the imperative to build trust without the backing of an established brand.
To understand these challenges, we spoke with renowned industry expert Christoffer Ødegården. He is the Head of Marketing at Bojoko.com, one of the largest affiliates in the UK market. They actively work with and help independent casinos reach British players and have data into what can make or break a brand.
In this interview, Ødegården shares his insights on the hurdles independent casinos face, the importance of building robust networks, and how tailored marketing strategies can carve out a niche in the saturated UK market.
What are the primary challenges that independent casinos face when entering the UK market?
Independent casinos often grapple with several significant challenges. Firstly, the UK Gambling Commission (UKGC) enforces stringent regulations to ensure fair play and consumer protection. Securing a UKGC license is a rigorous process that demands substantial time, financial investment, and strict adherence to compliance measures. Without a large organisation or turnkey solution to rely on, you need to build an in-house team or outsource several key tasks that require quite specific, localised expertise.
Secondly, the market is saturated with established brands possessing substantial marketing budgets and brand recognition. For an independent operator without the backing of a larger group, carving out a niche and gaining visibility can be particularly daunting. There are benefits to this as well, as you are entirely free to carve your path and take risks, but risks are always risks.
Lastly, building trust among players is crucial. Without an existing reputation, independent casinos must work diligently to establish credibility and assure potential customers of their reliability and security.
Being featured on an established affiliate site can significantly boost visibility and credibility for new operators
Given these challenges, how can independent operators effectively establish themselves in the UK market?
Strategic partnerships are essential. Collaborating with reputable affiliates like Bojoko can provide operators access to a broader audience and enhance credibility. Affiliates have established platforms and user bases and are often the main authorities trusted when a player chooses a casino.
On Bojoko, we are known for carefully testing and vetting all the brands we list and only collaborating with UKGC-licensed operators, which means the trust is, to a large degree, already there.
Being featured on an established affiliate site can significantly boost visibility and credibility for new operators. We have individual lists for casinos with every feature you can imagine, as Brits often have specific preferences. We make it easy for players to find casinos that have bonus percentages at 200% or let them deposit with a Paysafecard, have cashback, allow low minimum deposits, and so on. Many of these pages have thousands of visitors per month, and overall, we are in the hundreds of thousands monthly. That’s a lot of interest.
On Bojoko, you will be present on every relevant list for your brand, and as a smaller, independent operator, this gives you many opportunities to stand out. Choosing to add features with low competition can instantly get you placed high on lists and send your FTDs soaring.
It may also shock you to learn that thousands upon thousands of Brits are actually looking for independent casinos. Our page dedicated to standalone casinos in the UK gets well over a thousand monthly visitors, and you can be sure our competitors can point to strong traffic as well.
This is a list you will be added to instantly as soon as we partner up, and the benefits can be huge.
Networking is often highlighted as essential in the casino industry. How can new operators build valuable connections?
Attending industry events, conferences, and expos is an effective way to network with peers, potential partners, and service providers. These gatherings offer opportunities to learn about industry trends, regulatory updates, and best practices.
However, the easiest way to get started is to look for the top affiliates in the UK and reach out. It is easy to see which will be the most relevant for your needs.
Simply replicate a few of the searches your users are likely to make and see which comparison websites pop up. Then, reach out to us. Here at Bojoko, at least, we are always happy to bring on new affiliate partners, and the set-up is quite straightforward and quick.
What role does compliance play in the success of a new online casino in the UK?
Non-compliance can result in severe penalties, including fines and license revocation, which can be detrimental to a new operator's reputation and viability.
Implementing robust responsible gambling measures, transparent terms and conditions, and secure payment systems are all aspects of compliance that contribute to a positive player experience and long-term success.
If you fail basic responsible gambling standards, for instance, you can receive huge fines, so play it safe. The more you do for the safety of your players, the happier they are likely to be as well, so this is generally a win-win.
It is a common mistake to underestimate the importance of marketing and player acquisition
In your experience, what common pitfalls should independent operators be aware of when entering the UK market?
It is a common mistake to underestimate the importance of marketing and player acquisition. Even with a superior product, gaining traction can be challenging without effective marketing strategies and partnerships.
Most standalone casinos will have limited budgets and may use them unwisely, spending large sums without a way of knowing if it will have any results. If you look at affiliate marketing, you only pay when actual players join and make deposits; the same is not the case with most other forms of marketing.
Another pitfall is not understanding your strengths. Most casinos entering the UK market are either owned by a large group or set up through a white-label platform, where the games, design, payments, features, bonuses, and essentially everything else tend to be locked down. There is a struggle to stand out or be unique no matter how much they would like to. When you spoke with our CEO earlier in the year, he pointed out how competitive the UK industry is. With independent casinos, you have the ability to make changes and be responsive to market demands and niches where you can stand out. Many of your competitors do not. This is a true edge.
Most white-label platforms cater to the basics, the essentials. You can quickly differentiate yourself by offering niche payment methods and game providers, changing the minimum deposit, or tweaking your bonus for maximum acquisition. I strongly recommend speaking to our affiliate team as well, as they can tell you what the easiest and quickest wins are for you in terms of acquiring more FTDs.