Emerging iGaming Startups Leverage Unique Strategies for Early Customer Acquisition

A new study by industry investor Waterhouse VC has uncovered innovative approaches that emerging iGaming startups are using to acquire their first customers. This research involved extensive engagement with a range of companies, both B2C and B2B, in the online gambling sector, revealing a diverse array of tactics employed during the critical initial phase of their business growth.

The study found that high-touch customer engagement was the primary strategy for most startups. Tom Waterhouse, Chief Investment Officer at Waterhouse VC, emphasized that this approach, although not easily scalable, is crucial in establishing a robust customer base in the early stages. “Our findings suggest a shift from traditional methods to more organic, engagement-focused tactics,” said Waterhouse.

In terms of tactics, the report identified a clear dichotomy between B2B and B2C startups. B2B companies, like the B2B free-to-play game provider Low6, typically focus on one or two strategies. On the other hand, B2C startups, such as the online cryptocurrency casino Shuffle, tend to adopt a broader approach, often utilizing three or more diverse strategies for customer acquisition.

Shuffle’s success story was highlighted as particularly noteworthy. Ishan Haque from Shuffle explained their unique approach, “Instead of participating in traditional acquisition channels like streaming or traditional affiliate marketing, we recognized our edge in finding influencers with a small following, but that following consisted of 1000 true fans.”

Another approach that gained attention was leveraging strategic partnerships and networking, as illustrated by Circle Squared, a product and technology consultancy in the iGaming space.

Co-founder Clyde Harris shared how utilizing existing networks and forming strategic alliances helped them in acquiring new customers and raising their profile in the industry.

A surprising insight from the report was the lack of emphasis on paid advertising among these startups. This reflects a broader trend in the industry towards more organic growth methods and the importance of directly understanding and engaging with the target audience.

In addition to engagement and partnerships, incentivizing early adopters also proved to be a popular tactic, especially among startups like Voxbet, a Dublin-based ‘speak-to-bet’ technology company. “Typically, we have used exclusivity as the reward for an early adopter,” said Jonathan Power, founder and CEO of Voxbet.

The findings of this study underscore the significance of creative and high-engagement strategies for customer acquisition in the iGaming sector. As these startups continue to evolve, their innovative approaches to building customer relationships are setting new trends in the industry.

For a detailed exploration of all the tactics used, Waterhouse VC’s full report is available on their website.