A Changing Gambling Landscape

The U.S. gambling market has become increasingly top-heavy. Thanks to a wave of mergers, acquisitions, and market expansion, the 10 largest operators now account for over 72% of total U.S. gross gaming revenue (GGR). Giants like DraftKings, FanDuel, and MGM dominate the headlines and spend heavily on customer acquisition.

Another major shift? The explosive growth of digital wagering. Between 2019 and 2024:

• iGaming revenue grew by 216% across the six legal states.
• Sports betting handle increased by over 500%, reaching $120B in 2023.
• Tribal and regional operators are increasingly embracing omnichannel models, which blend land-based and online offerings.

However, despite this consolidation, smaller operators are thriving, mainly when they focus on agility, community connection, and the adoption of innovative technology.

Small Operators Still Hold Strong

Though they make up a smaller share of total revenue, independent and regional casinos have posted impressive gains:

• Over 450 commercial and tribal casinos in the U.S. are not affiliated with the most prominent brands.
• According to the American Gaming Association (AGA), regional casinos saw a 7.2% YoY revenue increase in 2023, outpacing the national average.
• In certain rural and underserved markets, small operators typically command 70–90% of the local market share due to their proximity and community loyalty.

Why Do Players Choose Smaller Operators?

Survey data from Eilers & Krejcik Gaming and Sportradar’s Fan Insights platform show that many players actively prefer smaller gambling venues. Here’s why:

1. More personal, local service (52%)

2. Better loyalty rewards or comps (47%)

3. Familiarity and comfort (39%)

The Big Question: How Can You Keep (and Grow) This Audience?

Let’s explore three key strategies smaller operators can use to win against the industry’s giants.

1. Expand Offerings with Amenities & New Gambling Opportunities

Adding verticals like sportsbooks, eGaming, and high-margin entertainment can drive serious growth.

The evidence:

• Operators that added a retail sportsbook saw, on average, a 22% increase in foot traffic within six months (AGA 2023).
• Adding a sportsbook also lifted table game revenue by 14% and food and beverage revenue by 18%.
• eGaming terminals and digital table games have contributed to a 9–11% revenue boost in select states, particularly with younger demographics.

Example – Rivers Casino Schenectady (NY): After launching its BetRivers sportsbook, the property saw 15% growth in non-gaming revenue and a 25% increase in player loyalty enrollments over the first year.

Other high-impact additions for smaller operators:

• Skill-based gaming lounges that appeal to Gen Z and Millennials
• Hybrid poker rooms with live-dealer and app-based play
• Venue-adjacent bars, restaurants, and entertainment hubs that create more dwell time

2. Win with Personalization

This is where small operators shine—and where data can supercharge performance.

Small brands offer a human touch that big players can’t match. However, by leveraging data, AI, and automation, you can make that personal connection even more powerful and scalable.

With Sportradar’s VAIX platform, operators can deliver:

• Bespoke betting experiences: Personalized bet prompts based on player history
• Customized loyalty offers: Tiered rewards based on real-time play, not just card tiers
• Contextual content: Push notifications tied to local teams or player milestones

Example – Midwestern Tribal Operator: Using VAIX, one tribal venue launched a test campaign with personalized push offers for key NFL games. The result?

• 38% lift in activation rate
• 21% boost in weekend GGR
• Average time on property increased by 17 minutes

Why this works:

• 68% of players say they’re more likely to return if they receive tailored offers (Source: PwC)
• Players who feel “known” by a venue spend 23% more per visit

3. Maximize Your Marketing Dollar

You don’t need a national budget to make a national impact—more innovative marketing, powered by real-time targeting and dynamic content, levels the playing field.

How Sportradar Ad:s Help:

• Enables precision audience targeting based on live betting activity, geography, and device behavior
• Reduces cost per acquisition (CPA) by up to 40% over traditional digital ads
• Supports dynamic creative delivery, updating odds, offers, and visuals automatically

Example – Regional Casino Campaign:

A Louisiana-based operator partnered with Sportradar to run a geotargeted campaign during the big college basketball tournament using dynamic creatives that featured:

• Live odds updates
• Player-specific promotions
• Localized calls-to-action

The result:

• CTR increased by 54%
• CPA dropped from $87 to $49
• New loyalty sign-ups grew by 31% during the campaign window

Pro tip: Combine real-time ad delivery with CRM data to retarget inactive players with compelling re-engagement offers.

The Opportunity Is Bigger Than You Think

Small doesn’t mean second place. With the right strategy, smaller operators can:

• Drive higher loyalty and lifetime value per player
• Compete effectively in both land-based and online channels
• Create standout, memorable experiences that big brands can’t replicate

Ready to Grow?

Sportradar works with operators of all sizes to deliver more innovative personalization, data-driven marketing, and technology that increases revenue across every channel. Contact us today to discover how we can help your casino stand out and thrive, regardless of its size.