Online Casinos Join the Streaming Wars With Branded Live Dealers

The streaming wars haven't been limited to streaming services—there's livestream shopping, live sports, Twitch (just to name a few) and, as it gains regulatory approval in more places across the U.S., online gambling. That’s because more casino apps are hosting live casinos, in which real dealers shuffle cards and spin roulette wheels as remote gamblers watch and place bets. And that niche within a niche is growing: Online casino operators are adding branded live casinos. Malta-based Evolution, the main vendor providing live dealer services to U.S. online casinos, reported 54% growth during 2021. The company added 300 dealer tables during the year, bringing its global total to more than 1,000, with 81 of them earmarked for branded live dealer studio services in North America. Jeff Millar, Evolution’s commercial director for North America, said eight operators—including Jersey City, New Jersey-based BetMGM and Boston-headquartered DraftKings—paid for that privilege. The niche service is currently available in Michigan, New Jersey, Pennsylvania and Vancouver, Canada. As Publishers Embrace Sports Betting, Advertisers Ante Up So now, not only are online gamblers playing with human croupiers, who interact with them in real time, but many of them are enjoying their favorite brand experiences, too. “Forging relationships with players is one of the most challenging aspects of this industry—there's so much choice out there,” Millar said. It’s not just other iGaming providers that are challenging Evolution for people’s time, but the wider entertainment industry as well. (As a category, iGaming refers to anything other than sports, esports, daily fantasy competitions and the like.) "It's why we prioritize retention and player loyalty," Millar added. "If you're going up against the likes of Netflix for a player's time, you need to be able to ensure you're speaking directly to customers and understand where, how and why their needs might be shifting.” BetRivers and DraftKings' branded live dealer studio. Inside the dealer studios In BetMGM and Borgata Casino's co-branded live dealer rooms in New Jersey and Pennsylvania, the table felt bears both corporate names. Behind the dealer, the diamond-textured wall and cascading vines provide the feel of a commercial casino—but not just any casino. BetMGM and Borgata’s branded live dealer streams have the benefit of instant brand recognition thanks to their parent company: MGM Resorts International. BetMGM, a joint venture between Las Vegas-based MGM and Isle of Man-headquartered Entain, is the online casino leader, with 29% of the U.S. market in Q4 2021. It added the branded live dealer studios in New Jersey in 2020 and Pennsylvania last year. That kind of brand differentiation matters now, as six states have legalized online casino gambling. “Through the strong branding and marketing of our live dealer offering, particularly our live dealer private tables, we remain the leader in the space," said BetMGM gaming director Oliver Bartlett. A private room in a branded live dealer studio. Brand differentiation is table stakes So many online gambling operators are competing for bettors that when Ontario’s regulations expanded on April 4, more than 30 operators were vying to enter the market. As of March 24, the province’s regulator had approved 16, with BetMGM getting the nod to open a branded live dealer studio on April 18. In the U.S., online casino and poker revenue grew to more than $1 billion in each state where it was legal in 2021, according to Online Poker Report (OPR). Michigan, New Jersey and Pennsylvania accounted for more than $3 billion in gross gaming revenue of the $8 billion generated in 2021 by legal online casinos, poker and sports betting in America. That’s 15% of $53 billion in gross gaming revenue brought in by all commercial gambling, OPR found. In 2019, iGaming and online sportsbooks only accounted for 3.3% of that revenue. Enter the challenge of standing out amid blaring commercials airing everywhere from Connecticut to West Virginia. New Jersey, for instance, regulates so many online gambling and sports betting operators that the Garden State is considered a proving ground for new brands. That’s why in July 2019, DraftKings became the first operator to contract with Evolution for a branded live dealer studio in New Jersey. Planning—and patience—needed Most U.S. online casino growth happened after May 2018, when the Supreme Court repealed the Professional and Amateur Sports Protection Act (PASPA). As a result of that decision, online sportsbooks are now legal in 21 states and the District of Columbia, according to Legal Sports Report. Online casinos usually take a bit longer for states to approve, though sometimes they’re legalized simultaneously with online sports betting. That’s why there are only six states allowing them so far. The most recent state to legalize online casinos, Connecticut, did so in October. State laws require online gambling studios to be located within the borders of legal online casino jurisdictions. But branded live dealer studios aren’t yet allowed. It's the same in Michigan, where process from online casino to live dealer to branded live dealer launch is ongoing, having taken more than a year so far. Helping to tell brand stories But online gambling operators believe branded live dealer studios are worth the wait. “BetMGM’s live dealer studios give players access to the feel of a live casino table and the ability to interact with dealers and hundreds of other players in real time from the comfort of their own homes,” Bartlett said. “The studios not only help us forge a tighter relationship between our players and our brand, it guarantees them seats at our tables. By managing operating hours and table limits, we can cater exactly to our own players’ needs.” Overall, online casino live dealer gambling appears popular. Looking at apps that offer the product, those streams often show up as players’ top choices. “It’s all about telling a story,” Millar said. “If a live dealer studio hooks a player’s interest from the get-go with a unique design or feel, that player is much more likely to return for a second, third or even a fourth time.” Branded live dealer studios tell those stories in an even more precise way, giving players the look and feel of their favorite retail casinos. Dealers pull cards out of shoes and wish gamblers luck. Bettors feel the rush together as players hit on winning streaks. Players chide each other through chats. And they're all doing it from the comfort of their own homes. The ‘Explosive’ Growth Expected for Sports Betting Ads in America