As North America’s online gaming industry moves beyond its early expansion phase, operators are facing a new set of challenges shaped by rising costs, tighter regulation, and increasing competition. At the same time, emerging trends such as prediction markets, artificial intelligence, gamification, and the continued push for iGaming legalization are reshaping conversations across the sector.
During SBC Summit Americas in Fort Lauderdale, Andrew Cochrane, Chief Commercial Officer at Soft2Bet, sat down with Yogonet to discuss what comes next for the North American market, why retention has become the industry’s defining battleground, and how operators can turn compliance, product innovation, and AI into long-term competitive advantages.
For years, the conversation in North America centered on state-by-state sports betting expansion. Today, the industry seems to be entering a more mature phase. What do you think will define the next chapter of growth?
The U.S. market has moved beyond the early land-grab phase and entered what I would call an enterprise stage.
In the beginning, operators were focused on brand awareness, customer acquisition, and capturing market share as quickly as possible. Today, the conversation is very different. As consolidation continues, operators are realizing that long-term success depends on building sustainable businesses, which means shifting the focus from acquisition to retention.
Retention is driven by product quality. Operators need robust, highly compliant technology platforms capable of adapting to evolving regulations. We’re already seeing higher taxes, stricter player protection measures, and increased scrutiny of VIP programs. These developments are common in mature regulated markets, and we’ve seen them play out across Europe.
Operators that have built compliance into the core of their technology stack are in a much stronger position because they can adapt quickly rather than playing catch-up. That creates a sustainable competitive advantage.
From a growth perspective, I think we’ll continue to see market share shift as smaller operators struggle to remain viable. Some companies will exit markets altogether, as we’ve already seen with several well-known European brands in the U.S. Sports betting is no longer the gold rush it appeared to be in 2020.
The biggest opportunity remains iGaming. There are still only a handful of regulated iGaming states, and as more jurisdictions open up, we want to be well positioned to capitalize on that growth. Canada is also becoming increasingly interesting. Alberta represents an exciting opportunity, and there may be additional provinces that follow in the future.
Overall, the next phase of growth will come from further iGaming expansion, new regulated territories, and continued consolidation that benefits sustainable operators.
Prediction markets have become one of the most talked-about developments in the industry. Do you see them as a threat to traditional sportsbooks, a complementary product, or something else entirely?
Ultimately, consumers have a finite amount of money to spend, so prediction markets have to be viewed as a competitive threat to some degree.
That said, they can also be complementary. It’s no coincidence that some of the largest North American operators have announced plans to enter the space. However, what’s interesting is that despite the remarkable growth of companies like Polymarket and Kalshi, many operators attempting to launch similar offerings are still struggling to gain meaningful traction.
The opportunity is significant, but it’s clearly not easy to execute successfully.
From our perspective, we’re an innovation-driven business. We’re constantly evaluating new ways to help partners grow revenue, whether that’s through gamification, new casino content, or entirely new product verticals.
We’ve seen the rise of sweepstakes gaming, and now we’re seeing prediction markets emerge as another potential category. We’re actively studying these opportunities to understand whether they create value for operators and players.
I believe prediction markets are here to stay. The bigger question is how they ultimately coexist with traditional sports betting and how regulators choose to classify and oversee them.
Having worked across both Europe and North America, what lessons from mature European markets should North American operators and regulators pay closer attention to?
The most important lesson is that margins inevitably decline as regulated markets mature.
Over time, taxes increase, compliance requirements become more stringent, marketing restrictions expand, and competition intensifies. All of this places pressure on profitability.
That means operators must build sustainable businesses from day one. Customer acquisition costs are only part of the equation. The real challenge is maximizing player lifetime value.
If operators fail to optimize retention and player engagement, they eventually run out of runway. They simply cannot continue spending aggressively on acquisition if players churn too quickly.
The key lesson from Europe is simple: retention, retention, retention.
Operators that get retention right build a much stronger foundation for long-term success.
As you noted, customer acquisition continues to become more expensive. Beyond promotions and bonuses, what will separate long-term winners from the rest of the market?
The FIFA World Cup is a perfect example.
Many operators view major sporting events as huge acquisition opportunities, and they are. However, acquisition costs are expected to increase dramatically during the tournament because every operator will be competing aggressively for attention.
The smartest operators understand that the challenge isn’t attracting players—it’s keeping them.
That’s why we’re seeing such a strong focus on gamification. Operators are launching free-to-play World Cup games, fantasy-style management products, prediction contests, community competitions, and leaderboard-driven experiences.
At Soft2Bet, for example, we’ve launched MEGA11, a football management game that allows players to build squads, compete against others, and earn rewards. These experiences create reasons for players to return beyond simply placing bets.
The goal is to maximize long-term player value. If you can successfully retain players acquired during a major tournament, you can justify a higher acquisition cost because the player becomes more valuable over time.
The industry’s focus today isn’t simply on acquiring millions of World Cup users. It’s on ensuring those users are still active after the tournament ends.
Many companies still view regulation primarily as a hurdle. Can compliance become a competitive advantage?
Absolutely. The operators leading today’s market are the ones that have built regulatory compliance into the foundation of their business and technology.
That applies to everything from payments and player account management to registration flows and customer protection tools. Compliance isn’t something that sits alongside the product; it shapes the entire business strategy.
The reality is that compliance creates clarity. It establishes boundaries and raises standards, which ultimately benefits both operators and players.
The best operators don’t view those boundaries as limitations. They use them as frameworks for innovation. They find creative ways to differentiate their products while remaining fully compliant. That’s why I see compliance as an opportunity rather than an obstacle.
When evaluating a new market opportunity, what factors matter most today?
There are several factors, but taxation is always one of the first considerations. If market economics don’t allow operators to generate sustainable returns, it’s difficult to justify significant investment.
Player behavior and player value are equally important. A Brazilian player has a very different lifetime value profile than a Canadian player, for example, so those dynamics must be carefully evaluated.
Regulatory stability is another key factor. Brazil is a good example of a market where the framework continues to evolve rapidly, creating both opportunities and uncertainty.
We also look at the size of the addressable market, licensing structures, competitive intensity, and long-term growth potential. Some markets may have limited licenses or limited opportunities for B2B providers, which changes the business case significantly.
At the end of the day, we look for ambitious operators and strategic partnerships. We don’t see ourselves as simply a supplier. We want to invest time, expertise, and resources into helping partners grow. When we find operators that share that vision, those markets become much more attractive.
Artificial intelligence has been one of the dominant topics at the conference. Where do you see AI having the greatest impact over the next few years?
The most immediate impact is operational efficiency. As markets mature and margins tighten, operators need AI to reduce costs and improve productivity. Any operator that isn’t already exploring AI-driven efficiencies will eventually find itself at a disadvantage.
Customer support is a good example. AI-powered service tools can resolve issues instantly, operate around the clock, and often provide a better customer experience than traditional support models.
But the most exciting area is retention marketing and CRM. Historically, operators relied on scheduled email campaigns, SMS messages, and push notifications. AI is transforming that model entirely.
Today, platforms can analyze player behavior in real time and predict likely next actions. If a player experiences a losing streak, the system can immediately determine the most effective response, whether that’s a personalized offer, a bonus, a free-to-play experience, or another engagement mechanism.
This happens automatically and instantly, creating highly personalized interactions at scale. For me, that’s where AI will have the biggest long-term impact: helping operators deliver more relevant, real-time experiences that improve retention and maximize player value.