Jamison Selby, President at Rubystone, explains how social and sweepstake casinos have provided European operators with the perfect opportunity to step foot into the US for the first time.
When the US online gambling market opened in 2018 after the fall of PASPA, European operators swiftly turned their attention towards the potential riches across the Atlantic. Much like prospectors during the California Gold Rush of the 19th century, ambitious entrepreneurs surged into the market, driven by visions of success in this brave new frontier.
However, within a few short years, it became evident that the real-money online gambling market wouldn’t deliver the easy riches many had anticipated. Operators faced a complex labyrinth of regulatory requirements, sky-high operating costs and evolving player demands. Major competition loomed large, and it quickly became clear that several dominant players would make it difficult for newcomers to claim their share of the market.
A New Gold Rush
Fast-forward to 2024, and European operators find themselves at a crossroads. The allure of untapped American potential remains, but the economics are more daunting than ever. Rather than retreating across the Atlantic, these operators should explore alternative avenues. While traditional paths into the US real-money market have faltered, new and more accessible opportunities now present themselves. The social casino market is experiencing explosive growth, powered by the engaging draw of sweepstakes prizing. For those willing to adapt and innovate, it’s a transformative opportunity.
The social casino model offers operators a streamlined entry point into the US market. While state-level debates continue, in-market operations, backed by solid legal analysis, have established the sweepstakes gameplay model as a compliant business across more than 40 US states and most of Canada. Though notable hurdles remain, operators can navigate a path into the market without spending years buried under complex state-specific regulations or facing brutal competition from entrenched players. This path enables market entry at unprecedented speed.
Brand recognition remains a powerful asset. Numerous European operators who once had a US footprint departed amid increasing costs and fierce competition. When they shuttered their American operations, they left behind hundreds of thousands of players. Those players are still out there. If operators can reenter the market as social casino operators and reclaim a portion of their past audience, they have an opportunity to gain substantial advantage. While competition in social sweepstakes is rapidly intensifying, a compelling window of opportunity exists for European operators to secure market share before the space becomes saturated.
The Power of Collaboration
While entering the social sweepstakes market presents an attractive prospect, for many brands, this represents uncharted territory. Established real-money brands exploring the space for the first time may encounter challenges with the unique compliance and operational demands of the social casino market. Understanding the needs and expectations of a broad US audience may also prove challenging.
Partnering with an all-solutions platform to launch – or relaunch – a brand across the US will alleviate many of these challenges while enabling rapid market entry. Speed-to-market provides a crucial advantage as competition increases. The timeline contrast is stark: even well-resourced brands with experienced development teams would be facing a year or more for independent development, while partnering with the right platform enables launch within months. For smaller operators, the complexity of independent development makes success highly improbable regardless of timeline. The shorter road offers compelling monetary incentives.
By partnering with the right platform, brands can gain a decisive competitive edge in the dynamic social sweepstakes landscape. The American Dream remains very much alive for European operators. A new world of opportunity awaits exploration. With the right strategy and the right partner, the possibilities in the social sweepstakes space are boundless.
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