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Pierre Mifsud is Chief commercial officer of VentureMax Group and says that the iGaming industry offers plenty of opportunities to new companies with great ideas, as long as they avoid its pitfalls.
Global online gambling has always been a magnet for the most creative minds, the most innovative talents and the entrepreneurs with the greatest entrepreneurial spirit.
Success stories are endless, from boutique studios that were acquired for hundreds millions of dollars to tier one operators that merged and consolidated to become undisputed global powerhouses. Where some businesses succeed, others fail.
The online gambling industry can be difficult to navigate. One wrong move could spell the end of your game. It takes more than a clever idea or product to reach the top. Financial backing will only take you so far.
In the end, startups must be able to master all aspects of their business. This includes everything from product quality, customer experience, regulation, differentiation, and marketing, to funding. Even then, success may not be guaranteed.
Look at these key areas to see how you can avoid the obstacles they present.
Regulations, licensing and compliance
As the industry adopted regulation, vast swathes on the map changed from grey to a white color. The industry has been able to explore new opportunities, but also faced with new challenges.
It is now necessary for operators, suppliers, and other service providers to obtain licences and certificates to launch their products in regulated jurisdictions. The requirements vary from one market to another.
Many organisations have a department that is dedicated to securing approvals for entering markets. They also have a compliance team, which ensures all requirements are met. Non-compliance could prove fatal to a new business.
Think about forming a team that will handle your entire regulatory needs. Even if you only have one person to do it, this is the best way to ensure that your business will be around for a long time.
Stand out from the crowd
It’s not surprising that so many start-ups are interested in the industry. It is important to stand out by bringing something different to the table.
It can be a truly innovative idea – an entirely new game format, a brand-new mechanic, technology that resolves a problem, or a way to do something better than it is currently done.
The technology is the driving force behind innovation. Start-ups who achieve the greatest success often have their own proprietary platform, solution or mechanic that revolutionizes the industry.
This isn’t essential for success. Many start-ups have done great things simply by improving on what they already do.
Start-ups must make a mark and will not succeed by attempting to copy those who have gone before. Instead, embrace your originality and find a unique selling proposition that is different.
Engaging Customers at Scale:
Engaging customers at large scale is a challenge for all businesses, whether they are B2B or C2C. A comprehensive marketing strategy is needed to reach customers at the right moment and place.
Businesses and brands need to be authentic and have a strong voice to communicate with their customers.
It is important to distinguish your business from the competition by having a clear identity and purpose. It is also important to determine the channels that you can use to connect with your customers.
When done correctly, digital marketing is cost-effective, highly traceable, and easy to optimize in real-time, as long as the correct data is being collected and analysed.
This type of marketing is a must-have for both B2B and C2C companies.
Securing Seed Funding
Most start-ups need funding to move forward with their plans. Organic growth can be achieved, but takes time and the business may miss an opportunity.
Finding the right investor partner is not always easy. Some investors will invest capital, but not be involved in the daily running of the company. Others may require more input and control than the founders are willing to give up.
Startups should also think about how to make themselves appealing to investors. VentureMax Group’s investment division has a set of criteria for businesses to consider before deciding whether or not they want to work with them.
Included are:
- Early stage growth with significant potential
- Being a company that can disrupt
- Being an innovative business
- A strong founding team is important
- Market opportunities that are scalable and defendable
We believe that investing should be done in a partnership.
We want to help start-ups navigate the amazing world of business.
While there are many challenges, those who succeed in making their iGaming startups thrive will reap the benefits.
