As online gambling celebrates three decades, the industry is grappling with the challenge of player acquisition amidst increasingly saturated markets. Consumers in 2026 have become savvier, making it harder for new operators to attract them as easily as in the past.
The traditional affiliate-driven acquisition model, which relies heavily on bonuses and the cost per acquisition (CPA) strategy, is facing significant challenges. Various factors, including mounting regulatory hurdles, tax increases, and escalating media expenses, are putting pressure on this model.
"Every user acquisition method has become less effective now because of the margins," stated Sam Sadi, CEO of LiveScore Group. He noted that either costs need to decrease, or as investments drain from the market, the demand for marketing inventory is likely to decline. "These are all supply and demand marketplaces. The same opportunities will remain, but they will become cheaper."
Andrew Steddy, UK country director for PlayOJO, emphasized the downfall of the old model where affiliates merely shifted players among brands with varying sign-up offers.
Sadi, who established a sportsbook in 1999, remains concerned about the growing unpredictability of the market. "[Previously] we could predict our projected revenues in the UK up to three years in advance with minimal variance. Now, we have to factor in 10-20% sensitivity due to unpredictable market behavior. Which marketing channels will thrive? Which will disappear or be banned? The revenue forecasts are wildly speculative now."
Reflecting on the past, the industry has built its current standing—valued at £6.5 billion in the UK as of 2024—on practices like welcome bonuses, affiliate models, and performance marketing. A survey by BonusFinder in 2025 revealed that 59% of Brits had utilized a welcome bonus or promotional offer in the past. While bonuses have successfully integrated into the entertainment market, the sustainability of this approach is questionable.
Steddy articulated that the age of extravagant sign-up offers is likely nearing its end. Following new UK regulations set to take effect in January 2026, which impose a maximum wagering requirement of 10x, many operators are starting to scale back their offers. He indicated, "The model of large networks and affiliates running brands, merely churning players among various sites with different offers, is gone."
PlayOJO's strategy intentionally avoided misleading bonus structures in its initial positioning as an operator committed to 'transparency and fairness.' Steddy remarked, "Engaging with high bonuses is a race to the bottom. It's something we never pursued. Nine years later, the market is returning to a more reasonable approach."
Sadi concurs, stating that a high bonus alone isn't enough to retain customers unless the product itself is excellent. He pointed out that relying on bonuses often translates to simply luring customers without ensuring they find true value in the service.
As bonuses become less impactful, the role of affiliate partnerships is under scrutiny. While some industry players, like Genius Sports, continue to see value in affiliate networks—as demonstrated by their $1.2 billion acquisition of Legend—Sadi remains critical of the affiliate landscape. "I'm not fond of the vast majority of the affiliate industry and have never appreciated the economic value they bring to marketing, customers, or operators."
He argues that there are affiliates creating genuine content that benefits customers, but there are also those who merely hijack search traffic without delivering real value. Steddy shares a similar skepticism regarding affiliates, noting their diminishing relevance in the UK market, where brands must exercise extreme caution due to new liabilities.
Conversely, Barbara Winderlich, director of media and acquisition at LOTTO24, part of ZEAL Network, views affiliate marketing as a necessary part of a diversified acquisition strategy. "Customer behaviors can differ significantly based on how they were acquired. For us, it's critical to bring players onto our platform and provide a strong product experience."
Amidst this shifting landscape, successful operators are exploring new avenues for player acquisition. Strategies now include brand-targeted television and streaming service sponsorships, as well as influencer content.
Winderlich noted, "The past couple of years showed us that diversification is key to acquisition. Major platforms like Meta are vital for advertising, but their algorithm changes pose significant risks."
At PlayOJO, Steddy has begun moving away from direct last-click attribution towards a broader measurement of marketing effectiveness. He believes the proliferation of various channels necessitates a more holistic approach to marketing strategies. Transitioning from traditional linear TV to on-demand streaming services has proven effective for reaching new audiences, as exemplified by their recent sponsorship of a late-night casino show on UK TV.
Moreover, the social media landscape continues to evolve. Steddy pointed out that influencer-driven campaigns are growing in importance and might become the new form of affiliate promotion. This includes user-generated content, allowing brands to push their narrative through consumer experiences rather than relying solely on traditional advertising.
Sadi's LiveScore Bet model leverages its extensive user base from the LiveScore app, which sees 45 million monthly users. He highlighted how 10% of regular bettors opt to engage through LiveScore Bet, a figure he intends to increase. Their alliance with the social media platform X has opened significant opportunities, allowing the integration of betting content and influencer tips directly within the LiveScore app.
In a market increasingly dominated by larger players, Sadi acknowledges their competition with established brands like bet365 is challenging. However, he believes the integration of LiveScore services with LiveScore Bet can create unique experiences unattainable for patrons of larger rivals.
While Sadi acknowledges that marketing budgets allow larger firms to dominate, he insists that such conditions necessitate innovation from smaller operators like LiveScore. He elaborated, "We’re forced to innovate since we can't simply match their marketing spend. This urgency drives us to explore new user acquisition methods through innovative media strategies."
Sadi drew comparisons to the tactics used by offshore operators in the late 1990s, who set up satellite properties to advertise in regions where they faced restrictions. He foresees a similar trend in the industry, with some bookmakers creating media assets to circumvent advertising regulations.
Such strategies may yield short-term gains, but Sadi cautions that without investment in quality content, long-term loyalty is unlikely. He stressed the importance of understanding that a true commitment to quality acquisition surpasses surface-level metrics.
The conversation around player acquisition has shifted from chasing volume to prioritizing quality. Both Winderlich and Steddy reinforce that while the industry still needs to focus on acquiring players, the emphasis is also on retaining those who demonstrate long-term potential and loyalty.
Emphasizing this shift, Sadi remarked that their internal reports confirm success in prioritizing player quality over sheer volume. He noted that LiveScore has redirected its acquisition strategy towards understanding and investing in sustainable customer relationships rather than merely inflating player counts.
With evolving trends in regulation and acquisition strategies, operators need to adapt continually. Although the methods may fluctuate, the demand for gambling remains steady, ensuring the competition for players will persist as companies vie for their attention.
