Jumping into a newly regulated market in the video game industry comes with its own set of challenges. Companies will have to navigate complex licensing processes, comply with strict regulations, and be prepared to tailor their offerings to meet the express requirements of the market.
This challenge persists even in a mature region like Europe. For example, the Netherlands officially regulated online gambling at the end of 2021, the road to an authorized market has not been without setbacks, delays, and last-minute changes.
Initially, the Remote Gaming Act (KOA) would go into effect on July 1, 2020, and the market would open six months later, in early 2021. However, in November 2019, the law’s effective date was pushed back by six months, before an additional wait until March 1, 2021 after arrangements for the launch were disrupted by the Covid-19 pandemic.
After all, the law became law on April 1, 2021, allowing the market to open six months later, in October 2021.
Two years after its launch, Ljunggren has witnessed the ups and downs of its entry into the Dutch market and has noted the importance of providers such as Leadstar Media for operators to stay ahead of their competitors.
One of the main hurdles operators face when entering a newly regulated market is navigating the regulation and compliance requirements. These regulations aim to ensure fair play, responsible gambling and consumer protection, while requiring igaming businesses to make significant adjustments to comply with the law.
Although the promotion can be challenging, Leadstar Media has managed to succeed in the most sensible way and Ljunggren believes that his good fortune in the Netherlands is due to careful preparation.
“We had a site in a position to launch it when the Dutch market was regulated,” he explains. “We did what we could to deliver on the messaging about regulated gambling, for example, even though we didn’t know exactly what the new regulations would mean. »
Since the launch, Ljunggren says that staying adaptive has been key to getting ahead, and his team have been ready to change as and when the market does.
“We had to pay attention to our partners when things changed and adapt our products accordingly. As with most newly regulated markets, things are especially replaced from the first launch. A recent update is that we had to ensure that 95% of our traffic comes from Users over the age of 24.
While mastering regulation is a priority, Ljunggren believes that player acquisition and retention methods are an equally vital priority for operators. Newly authorised market or not, he believes that a lot of progress can be made when new brands are introduced in the Netherlands.
“You have to make a smart first impression and while the welcome bonus is one of them, the product has to be precisely what the market is for. You can’t just jump in and expect things to magically happen because you. “We are providing a wonderful first bonus.
Welcome bonuses are a very important tool used by operators to attract new players and trap them to sign up on their platform. These bonuses come in the form of free spins, bonus funds, or other perks that players can use to decorate their gaming experience. Not only do they help operators differentiate themselves from their competitors, but they also build logo loyalty and give players an idea of what the platform has to offer, expanding the likelihood of long-term visitor loyalty.
Ljunggren believes that finding the best balance between keeping players engaged and retaining them is where most companies struggle. “While a smart bonus can attract a large number of new players, retaining them afterwards is more complicated. Thanks to the bonus, an operator has the possibility to introduce himself. This first impression is very important if a player needs to transfer marks or just play the bonus and walk away. It has to be a smart product, and that’s not the case.
While it depends a lot on the market, Leadstar Media has noted that what they call “bonus bait” plays a big role in early acquisition numbers. However, Ljunggren says the team has also noticed that many brands in other markets launch with an attraction bonus. and attract new players, only to exit the market after a while.
“For long-term success it’s not enough to have short-term wins. In a competitive landscape only a good product will prevail.”
That’s why Leadstar Media believes that localization is a must when launching into a new market. As part of this, corporations seek to tailor their products to meet specific regional needs, compliance requirements, personal tastes, and cultural nuances.
For Ljunggren, localization is more than just translating content into the local language. This includes tailoring the user experience, payment methods, visitor support, and even game offerings to meet market characteristics.
“A smart product can differ from market to market,” he says. “I don’t think you can expect what worked in Canada to necessarily work when it launches in the Netherlands.
“You can’t just jump in and expect things to magically happen. Location is important, and you also have personal tastes of the players that may also differ. I think there’s room for more brands if they do a smart job in this area.
By localizing the product, operators can create a more personalized and enforceable experience for players, helping to build acceptance as true and ultimately engagement.
“Location is important. Don’t copy what others do, otherwise there’s no point in players sticking with you after the initial bonus.
After seeking its access to the Dutch market, Leadstar Media announced its partnership with LeoVegas in the Netherlands in October 2023.
The launch came after LeoVegas secured a new licence in the country in July through its LeoVegas gaming business. Issued by national regulator Kansspelautoriteit (KSA), the five-year licence covers casino, live casino and sports wagering activities.
Ljunggren says that since that launch, LeoVegas and Leadstar Media have gone from strength to strength.
“LeoVegas stands out for the clicks it attracts to our MyBookmakers. nl site. This is what is expected when a new logo enters a regulated market, but it is still very impressive. Before launch, the maximum number of clicks on the logo in the page had a 27% click-through rate in the period before and after the launch, LeoVegas had a click-through rate of 54% in the first week.
“Our site’s overall conversion rate has nearly doubled since the launch of LeoVegas, showing that many users come to our site in search of new brands. “
Though this early success is welcome news to the Leadstar Media team, Ljunggren cautions that it is likely there will be a slight drop on click-share as the novelty factor decreases.
“When there’s a new logo with a new bonus, other people tend to prefer that platform. Otherwise, it’s not the established logos that attract the most clicks, but it’s a clever division between the newer, established, and revived logos that attract the most clicks. They were active before regulation.
Building on its early successes in the Netherlands, Leadstar Media is looking to further develop its presence in the market. With this strategy in mind, Ljunggren is wary of potentially stricter gambling regulations coming into force, and doesn’t think it will deter anyone from entering or staying in the market.
“The market is still quite small, so there are many opportunities to retain players. Regulations would possibly restrict the ability to gain and retain consumers at an intelligent rate, but I don’t think the Netherlands will see a decrease in the number of corporations looking to establish themselves, but I believe their expansion will continue.
With this in mind, those looking to enter this lucrative market focus on one thing and one thing only: their product. For Ljunggren, good luck is in the hands of the product.
“Launching a product without considering localisation and understanding the unique preferences of the target audience is not a reliable approach. Success requires adapting to local nuances, and brands have the opportunity to thrive if they excel in these aspects.”