Exploring strategic expansion of iGaming brands into various international markets – MercoPress

Exploring the strategic expansion of iGaming brands into various international markets

Tuesday, February 20, 2024 – 15:17 UTC

Photo: Unsplash
Photo: Unsplash

Due to global integration and increasing interest in diverse entertainment options, many regions around the world are turning to iGaming. This trend opens up the opportunity for operators and companies to tap into the lucrative multibillion-dollar market.

For the iGaming industry, venturing into new markets requires well-thought-out strategies. This article explores different approaches taken by iGaming brands, with a focus on strategic partnerships and acquisitions as critical tools for international expansion.

Strategic partnership

Entering a new market can be challenging for iGaming brands, especially if they are unfamiliar with how the region works. Because of this, instead of just expanding into unfamiliar markets, these companies can explore new destinations by forming strategic alliances with other brands that already operate in such markets.

A worthy example is the Hollywood Online Casino. Hollywood Online Casino was only available in Pennsylvania until it was revamped and partnered with Resorts Online Casino, PENN Entertainment and ESPN. Since then, Hollywood Online Casino has expanded into several US states through these strategic alliances, including New Jersey, Michigan and West Virginia.

They are also trying to solidify their presence in these new regions by offering really good Hollywood casino promo code options so that players in these states can benefit from their bonuses and become regular customers. Through strategic collaborations and partnerships, brands access local networks, knowledge, expertise and resources, making it easier to function in an unfamiliar environment.

Acquire other companies

While partnerships involve a temporary collaboration between two different brands for mutual success, acquisitions involve the legal merger of two companies. Acquiring a business gives the acquirer immediate access to new markets, products, people, capabilities and intangible assets such as goodwill and research and development capabilities.

A good example is DraftKings’ recent move to acquire Jackpocket for $750 million to expand into the US digital lottery market. Although this deal is expected to close in the second half of 2024, this acquisition will reportedly improve DraftKings’ position in the iGaming industry as DraftKings can leverage Jackpocket’s cross-selling capabilities and customer acquisition engine. We also saw similar moves with Microsoft’s acquisition of Activision Blizzard for $68.7 billion.

Expanding into new markets through acquisitions requires strategic planning. Brands first identify target companies that match their goals, assess their market presence and ensure compatibility with existing business structures and future plans. Most acquisitions are subject to regulatory approval and customary closing conditions. Therefore, brands ensure they conduct thorough due diligence to assess financial health, potential synergies and cultural fit before closing a deal.

Developing a clear integration plan and effective communication with stakeholders is critical throughout the process to maximize the benefits of the acquisition and promote trust and alignment.

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Photo: Unsplash

iGaming content localization and cultural adaptation

Opening up new markets for iGaming brands goes beyond implementing the most attractive bonuses and competitive spreads. It requires a properly implemented marketing strategy that is localized and tailored to the unique cultural context with which the new target audience can identify.

It is important to ensure that the marketing messages and resources used to enter a new market are culturally appropriate and localized to avoid sending mixed or false messages that could harm the brand image. Localization and cultural adaptation is about more than just translating existing content or marketing materials into the native language.

This involves changing the brand’s overall approach, visual elements and promotional language to reflect, respect and resonate with the local culture of your target market. For example, in China, most iGaming brands use red in their visuals because red represents luck in this region. Localization and cultural adaptation have proven to be useful keys to unlocking new iGaming markets.

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