Independent vs Big Brand Casinos – Which Type of Operator is Better?

Posted by Harry Kane on Friday, March 22, 2024

In all commercial realms, there’s a tendency to believe that independent brands boast higher levels of quality and service than larger franchises or chains. This is despite the fact that large brands and chains often have far greater financial resources and a greater ability to hire top talent, which speaks well of independent brands and their ability to connect with their customers.

According to a detailed YouGov study from 2019, some 43% of customers were more likely to shop with an independent retailer than a larger corporate brand. This was attributed to the incentives offered by independent entities and cynicism of large brands. But is the same trend prevalent in the casino market, and which type of operator should you choose when wagering?

Market Watch – Independent Brands vs Chains in the Commercial World

Let’s start with a question; why are independent brands perceived as offering far higher levels of quality than chains or franchises? The answer is multifaceted, but generally speaking, independents are more customer-centric and strive to create value in every single product, service or interaction that they’re involved in.

This approach helps them to negate the gap in financial resources, and the advantages that large brands have in terms of their pulling power, tech stacks and ability to sell at discounted prices. Remember, independent businesses cannot rely on the stellar reputation of larger brands either, making it hard for them to compete on an even footing in the marketplace.

Independent brands must also promote the idea of quality as a key theme within their integrated marketing campaigns, in order to justify any price premiums and provide a viable alternative to more established rivals. This often leads to more creative and inspiring marketing campaigns, which may help to reach a much larger and more engaged audience.

This trend is perhaps best embodied in the hotel industry, where independent locations have been competing aggressively with chain alternatives for years now. In this particular sector, premium brands such as the Hyatt Hotel have a global reputation for quality, and in order to compete with this in local communities, independent hotels need to invest heavily in the quality of their rooms while creating a unique and impressive range of facilities to meet their customers’ needs.

Of course, this creates a challenge in terms of pricing, as chains are still able to charge a higher ADR (average day rate) than independents. In fact, the average ADR for chains was $465 in 2018, whereas this fell to $308 for independents and continued a trend that had persisted for years. However, upscale independents boasted the higher ADR premium during the same period, with this $9 higher on average when compared with chains.

When it comes to performance, independent hotels continue to see strong gains within the industry. At the Hotel Data Conference hosted by STR and Hotel News, it was revealed that upscale and luxury independents were boasting a much higher market performance than the US average for chains, with occupancy also improving at a concerted and much faster rate.

It’s also important to note that the approach of independent hotels is particularly appealing to the increasingly influential Millennial demographic, which is more inclined to save money on cheap flights and indulge in a luxury experience at their destination. This trend is prevalent across multiple marketplaces, including the online gambling space.

Are Independent Casino Brands Preferable to the Big Market Players?

It can certainly be argued that independent casinos are targeting a similar demographic in the modern age, as they look to offer a unique and seamless gambling experience to the growing army of younger gamblers in the UK. Online gambling is increasingly popular among younger players, especially those in the 18-34 age bracket.

This is also done by focusing on a high-quality site design and personalised customer service, while independent casinos are more likely to create proprietary or unique gaming software to establish an important point of difference between them and established corporations. The development of proprietary gaming software is key here, as it creates the type of unique and sought-after experience that Millennials crave.

This undoubtedly contributes to the immense and fast-growing appeal of independent online casino brands across the globe. It’s also fair to surmise that younger gamblers are less loyal or wedded to the idea of favouring recognisable brands, as they have an entirely different mindset when comparing markets and selecting operators.

In the case of Millennial and Gen Z gamblers, there’s actually a growing sense of cynicism displayed towards large brands and corporations. This is borne out by the increased use of online ad blockers on desktop devices among 25- to 34-year-olds, with more than 50% of this demographic using such software to block spammy or promotional messages. The average among all age demographics is 31%.

Instead, Millennials are more likely to choose an independent brand when comparing iGaming operators, and one that places a strong focus on ethical and social considerations such as responsible gambling, fairness and transparency. They’re also likely to select platforms that are more trustworthy and suitable for a long-term partnership.

On another note, independent casinos are more likely to offer lucrative welcome bonuses to their players. This taps into the earlier idea of having to incentivise customers to part with their hard-earned cash, with independents required to provide more generous offers and a larger number of promotions for existing players.

These factors can more than make up for the shortcomings of independent casinos, such as a reduced interactive element (in some cases) and the sheer number of games available. The initial incentive presented to players can be extremely compelling, especially if it translates into a generous amount of free play and isn’t encumbered by prohibitive wagering requirements.

What’s more, independent casinos are tailormade for targeting younger consumers and players, who continue to comprise a growing share of the iGaming market as a whole. So, although you’ll have to make your own choice between large casino brands and independent operators, there’s no doubt that the latter offer a number of competitive advantages over their more established rivals.