Cross-selling is a great way to increase profits for operators in the online casino and sports betting industry.
At SBC Summit North America Dan Shapiro Chief Development Officer for Caesars stated that the company, as an omnichannel provider, aims to encourage customers to utilize both online and land-based channels.
Shapiro says that Caesars Rewards is a multi-channel company with over 65 million US customers.
He said: “Our strategy involves entangling these customers into our network via our rewards program and then cross-selling them to different verticals. We know the most valuable clients are those who are involved in multiple verticals within our business.
“While customers play online, they may also visit the casino. They might redeem rewards points for entertainment experiences, like a trip to Caesar’s Palace, or another place of that nature, or a meal with one of our celebrity chef.”
Shapiro’s panel was joined by Nick Smith, Sportsbook manager at Snoqualmie Casino; Rhea Loney Chief Compliance Officer at BetMGM; Marcus Yoder CCO at Playtech and Marcel Elfersy CCO at GiG.
Elfersy added his voice to the discussion, noting that a casino/online gambling site’s uniqueness is less important than its ability to build customer loyalty.
He explained that players wanted to be loyal to their games and that operators should focus on profits, rather than spend a lot of money on exclusive releases.
Elfersy said to the Meadowlands Exposition Center audience: “Over the past couple of years, operators have been talking a lot about creating unique games. I don’t believe land-based properties had traditionally unique games within their facilities.
“Players often want more loyalty towards a particular game. They want the same games to be available across multiple properties and brands. When developing unique content, it is important to ask a P&L Question.
The discussion soon shifted to regulation and compliance. Panelists evaluated the regulatory landscape of the US online sports betting and casino ecosystem.
Loney recalled the process of getting a license in different states and some of the challenges compliance teams face when entering new markets.
She said that large operators must enter new markets quickly, as there is very little room for errors.
Loney said, “Launching doesn’t come easy. Every state has a slightly different compliance playbook. Your internal controls will change from one state to another, but you’ll find some efficiencies. In every launch I’ve worked on, something is different. This makes it more difficult for the operator to reach the launch point.
It’s important to train the internal team, and to make sure that they understand what to expect in a new jurisdiction. Some states allow you to have a national hotline for responsible gaming. If you are doing state-specific advertising, you may have to have a hotline local to your area. This is a complex operation and requires a team.”
While sports betting is available in most of the country, there are a few notable exceptions. The industry has not yet rolled out online casinos.
A panel of experts expressed optimism following the disappointing results in 2023.
Yoder, from Playtech, noted that the online casino was essential to the bottom line for operators. This is something that many other panels in the conference delved into. Yoder said that, apart from the benefits to operators, online casino expansion was essential to keep players secure, as it offers a safe, regulated alternative to threats on the black market.
There’s no doubt that icasino has the higher profit margin. Yoder said that this was true not only for operators but also for us and the state. “I am a very legalize-and-tax kind of person. I also support the American Gaming Association’s board meeting where six regulators were on stage and committed to enforce their rights within their jurisdiction as well as their purpose which was to stop black market casinos.
“So, part of getting profitability is to make it so it’s not okay for US citizens in any state that has legalized sport betting to go to the black market and bet.”