I remember a conversation I had years ago with a senior executive at a well-known gambling company. We were at a conference, perched on the edge of a loud networking event when I asked him why his company was spending millions on a trade show stand that didn’t seem to deliver much beyond brand awareness. His response? “Because we always have.”
It stuck with me. Not because it was surprising – far from it – but because it was the perfect example of a mindset that still dominates parts of the industry today. The idea that if something has worked in the past, it must be worth doing indefinitely. Even when the market shifts. Even when customers change. Even when there are clear signs that a different approach could be more effective.
The Danger of Tradition Over Strategy
Like any other, gambling businesses operate in a commercial environment where market conditions evolve. Yet, tradition is often treated as a strategy in itself. Whether marketing budgets are allocated, events are attended, or new markets are approached, the industry has an almost religious attachment to the status quo.
Take retail betting shops. In markets like the UK, foot traffic has declined significantly, yet many operators are still reluctant to rethink their retail footprint. There’s a similar story in online gaming with bonus-driven customer acquisition – despite clear evidence that relying solely on bonuses creates high churn and low lifetime value. Yet, when a new entrant tries something different – whether it’s a new form of loyalty, a fresh approach to branding, or a different way of engaging players – there’s often a wait-and-see attitude rather than a willingness to test and iterate.
What Happens When Stagnation Meets Regulation?
There’s another problem with the ‘we’ve always done it this way’ approach: it doesn’t hold up when regulators step in. The rapid regulatory changes in markets like Germany, the Netherlands, and now Brazil make it clear that clinging to outdated models is a risk, not a safety net.
Take the online casino sector’s reliance on aggressive affiliate marketing. The signs were there years ago that regulators would crack down on opaque practices, but some companies continued to double down, believing the status quo would hold. Now, we’re seeing tighter controls, more scrutiny, and in some cases, operators having to completely rethink their acquisition models overnight.
A Different Approach: Adaptation as a Competitive Edge
The companies that will thrive in the coming years are those that are willing to challenge their own assumptions. That means asking:
- Are we still investing in the right channels, or are we just following the same playbook as a decade ago?
- Is our approach to customer engagement genuinely effective, or are we relying on old metrics that no longer tell the full story?
- Are we reacting to regulatory changes too late, or are we engaging with policymakers early to help shape sensible frameworks?
There are already operators and suppliers proving that a different approach works. Look at how some companies are shifting towards entertainment-first gaming, investing in responsible gambling technology, or taking a more transparent approach to affiliate partnerships. These aren’t just compliance-led initiatives; they’re strategic choices that make sense for long-term sustainability.
So here’s the challenge: next time you hear someone say, “because we always have,” push back. The market is moving too quickly for that to be a good enough reason anymore.