hen starting an online gambling company, one of the decisions you’ll have to make is whether you will offer a full-service portfolio, or hone in on just one or two niche products. Some operators may focus on slots and sports betting; others may want an online casino that includes live dealer games, slots, table games, and betting.
But which is the best solution for you? There is no set answer to this question as it depends entirely on your goals. In this article, we lay out some of the pros and cons to help you make an informed decision.
Specialist Gambling Site
A specialist gambling site tailors to gamblers looking for a certain type of entertainment. For example, it could be an eSports betting site or one dedicated entirely to bingo. Alternatively, it could group similar kinds of gambling such as sports, fantasy sports, and eSports betting; or online casino, table games and scratchcards: or even bingo and lottery games.
What are the benefits of niche sites?
- Efficient marketing: If you have one site targeted at one specific kind of gambling, it becomes much easier to market. You will have a clear understanding of your potential client's age, sex, location, interests, and specific games they prefer. For example, for an eSports-only betting site, you understand that your clients are eSports fans, like video games and belong to a younger age bracket. This information will allow you to efficiently customize the platform to their specific needs and display advertising in places they are likely to visit. This saves the ‘wide net’ approach that many online gambling marketers must grapple with.
- Simple approach: When you have a site offering an endless array of different games, it can get a bit overwhelming. Some customers prefer simplicity and having a limited selection of games to choose from. When you opt for a niche site, you can select the betting type and games you want to offer and present them in a slick, user-friendly way. The saying “quality over quantity” applies in this case.
- Expertise-driven focus: When you focus on one or two specific types of gambling, you can position yourself as an expert and leader in the field. In a competitive sector with plenty of other sites all vying for attention, this can give you a competitive edge. Marketing yourself as specialists or even boutique gambling operators providing a selection of quality services can attract a new demographic of bettors.
- Loyal clients: As mentioned, iGaming is a competitive market. If you can market efficiently, provide a simple platform and position yourself as an expert, you will deliver a more quality service. This will help you develop and nurture a loyal client base that is likely to stick with you rather than hopping between providers. If you consider adding other products or setting up sister brands in the future, this can be beneficial as you already have a customer base ready to go.
- Money-saving: Integrating games into your platform costs money. You have to reach agreements with those that produce the games, pay for licenses, updates, servers, security, and various other features and factors. The more gaming options you have, the more expensive it becomes. By offering a specialist gambling site, you have fewer offerings, and your overheads are lower. The bonus is that this doesn't necessarily translate into less income either meaning your profit margin will be bigger.
- Regulatory simplicity: Depending on where you are licensed, offering different kinds of games could require multiple licenses or additional paperwork. While many offshore jurisdictions have simplified their licensing process requiring only one gaming license, some still demand additional permits. The application process costs money, takes time, and can add a regulatory burden. By specializing in just one type of gambling, you can avoid this.
Full-Service Gambling Site
A full-service gambling site offers a wide range of different gambling options. It could include casino games, sports betting, horse racing, poker, and live table games. It could even include betting such as eSports, bingo, lottery, and fantasy sports.
What are the benefits of a full-service gambling site?
- A one-stop-shop: If you offer a wide range of gambling products on your site, your users will never have to visit another operator. You will see significant numbers of visitors coming to gamble on a range of different games, and they will often stay for longer. Providing everything they want on one site means they are less likely to be lured away by competitors as all their needs are satisfied in one place.
- Increases client retention: If clients know they can enjoy many kinds of gambling on one site, this will keep them coming back for more. Especially if you create a retention program that rewards them for playing multiple games. By tending to their every need in one place, they don’t need to go elsewhere.
- Higher revenue: If you have more games, slots, and types of betting, it follows that you’ll attract a variety of users to your site. More users mean more money which in turn means higher revenue for you. Of course, you’ll need to invest in setting up the site infrastructure, integrating the options, and properly segmenting your clients, but once you have, there is great potential for reward.
- Regulatory efficiency: Some jurisdictions require only one license for all gambling times, whereas some have various licenses and permits depending on your game offering. If you opt for an offshore jurisdiction with a single license, you can offer a full portfolio of options with relative ease. Be sure to discuss your options with your corporate service provider, before starting the application process.
- More chance to make a name: You will probably enjoy more popularity as you attract a wider clientele to your site, which translates into more people recognizing your brand, feeling more comfortable by engaging with it, and recommending you to their friends.
As you can see, both business models have their benefits. Factors such as budget, goals and business plan will determine which option suits your needs best. We encourage you to discuss your options with a professional corporate service provider before making any decisions.