Operators Bet on In-House Products: How to Succeed in the Fragmented Online Casino Providers Market?

Fragmented Online Casino Providers Market

According to May data from the Eilers-Fantini Online Game Performance Database, 22.3% of the online casino providers market is held by a group of over a dozen providers, with no single company exceeding a 3% share. This 22.3% surpasses the market share of the current leader, Evolution, which holds approximately 17.5% based on high-end estimates.

Evolution, specializing in live casino products, still dominates, but according to Eilers & Krejcik Gaming reports, its dominance is less pronounced than a year ago when it held 19.1% of the market. Hot on Evolution’s heels is IGT (12.5%), which is undergoing a transformational period after its gaming division was acquired by Apollo. This will undoubtedly impact the brand’s market position.

EKG Line also notes significant improvements for Games Global, which jumped to the podium with 11.1% market share, surpassing Light & Wonder (9.6%). White Hat Gaming, with an 8.2% share, also ranks among the market’s contenders.

On the cusp of the two groups is AGS, whose share grew from 3.4% to 6.2% in a year. The report also highlights Inspired (3.4%), Aristocrat (2.9%), and Everi (4.4%), the latter also acquired by Apollo, like IGT’s gaming division. The new Apollo-backed IGT is thus poised to gain strength.

Another key market insight from Eilers-Fantini: 5% of online casino products are now in-house offerings.

Operators Lean on In-House Technology

The trend of operators increasingly relying on in-house solutions is set to grow. Major players want to depend more on themselves and less on external sources. DraftKings CEO Jason Robins has publicly praised progress on internal projects, stating that about half of DraftKings Casino’s revenue now comes from in-house titles. Jason March, VP of Gaming, confirms that DraftKings releases around 30 proprietary titles annually, with a portfolio now reaching 130 products.

Caesars Entertainment is following a similar path, proudly launching its first in-house product in May – Caesars Palace Signature Multihand Blackjack Surrender. The venture’s success is evident, as just a month later, Caesars added another in-house game from its Empire Creative studio, Signature Blackjack Surrender.

“Signature Blackjack Surrender marks the latest triumph of our in-house developed content, which is becoming a core piece of our online casino foundation,” said Matt Sunderland, Senior Vice President and Chief iGaming Officer at Caesars Digital.

DraftKings’ VP of Gaming, Jason March, explained one reason for this trend on the Next.io podcast: “We take some bigger swings than some major game suppliers can’t take. A game usually takes you anywhere from six to nine months to build. We’ve taken upwards of two years to build some of our games. So we’re a lot of companies that just couldn’t invest that time into a single game.”

Operators can afford to dedicate more time to their products. Knowing their needs, they can create offerings that perfectly align with player expectations. Providers, however, are forced to churn out games rapidly to appeal to a broad audience and catch operators’ attention with their portfolios.

A Tough Task, But the Game Is Worth the Candle

The online casino providers market is facing significant changes. On one hand, there are numerous shifts driven by business activities; on the other, companies experience varying success and face diverse challenges.

Operators are in a markedly different position than providers. While iGaming is currently limited to seven U.S. states, sports betting spans 38 states plus D.C. and Puerto Rico, with Missouri soon to join. Online casinos are undoubtedly more lucrative, but operators can take bigger risks due to their diverse revenue streams.

Online casino provider products are limited to a maximum of seven states, and the winds of change aren’t blowing strongly enough to suggest this will expand soon. This significantly constrains providers’ playing field.

It’s no surprise, then, that conglomerates like Evolution and IGT (at least until Apollo’s acquisition) dominate the market, as the U.S. isn’t their core focus. Games Global, with a strong presence in the UK and Europe, is also gaining ground. Meanwhile, U.S.-focused Light & Wonder and White Hat Gaming are noteworthy, though their operations are also fairly diversified.

The strong dispersion of market shares suggests confidence that the online casino providers market is more accommodating than the sports betting market. For smaller providers, the recipe for success at their scale and establishing a foothold in the U.S. lies in local adaptation, segmentation, and targeting untapped niches. This is the path to forging new partnerships with operators. However, without operational flexibility and tight cost control, this challenge could prove daunting.