The U.S. gambling industry—both online (iGaming) and land-based—is experiencing rapid transformation, fueled by shifting cost structures and accelerated technology adoption. In the past three years, operators have navigated surging marketing expenses, workforce challenges, and compliance costs, while integrating advanced digital tools (including AI-driven solutions) to stay competitive. Below, we explore how operational cost distribution is evolving and how technology adoption is reshaping the gaming ecosystem.
Rising Operational Costs and Workforce Trends
For iGaming operators, the largest share of expenses continues to be marketing and promotions, which can consume nearly half of a startup’s budget. Advertising, player bonuses, and affiliate commissions remain essential to attract players in an increasingly crowded U.S. market. To put the scale into perspective, leading operators such as FanDuel and Caesars each spent close to $1 billion on marketing in 2022 alone—an illustration of how customer acquisition costs have ballooned.
Staffing and labor is another critical category. Online gambling requires teams for customer support, compliance, IT, and marketing. One industry analysis noted that staffing often becomes the single largest recurring cost for independent operators. While online platforms bear these costs digitally, brick-and-mortar casinos also shoulder a heavy labor burden to keep operations running. Companies like The Service Companies specialize in helping land-based casinos and hospitality venues optimize staffing and operations, showing how efficiency solutions can contain labor costs without sacrificing service quality.
Payment processing also represents a growing cost. Transaction fees typically range from 1% to 5% per deposit or withdrawal, which can add up to 10% or more of gross revenue depending on operator volume. Technology infrastructure, gaming licenses, and compliance overheads make up the remainder. New solutions such as Rapid by Approvely, are emerging to help operators address these challenges through faster deployment and scalable card-to-crypto options.
To combat rising costs, operators are increasingly turning to AI and automation. Robotic process automation (RPA) and AI-powered analytics can streamline customer support, fraud detection, and marketing optimization. In one case, a U.S. casino chain achieved $1.5 million in annual savings and a 51% faster operation speed by implementing RPA. AI chatbots reduce the need for large call-center teams, while machine learning improves fraud detection accuracy. On the marketing side, AI-driven personalization tools help operators allocate budgets more efficiently by tailoring promotions to individual player behavior, reducing reliance on costly mass campaigns.
Outsourcing and vendor partnerships remain another avenue for cost control. By working with B2B technology providers or operational service firms, operators can reduce the expense of building systems or managing non-core functions in-house. This approach reflects a broader industry trend of focusing internal resources on growth while relying on external specialists for efficiency.
Tech Adoption Across iGaming Verticals
The U.S. has seen rapid adoption of online gambling across multiple verticals since the repeal of PASPA in 2018. Sports betting has expanded fastest: in 2021, about 20 states had legal online sportsbooks; by 2023, 30 states offered mobile sports wagering. Online casino (iGaming) has been slower, but the number of legal states has grown from five in 2021 (New Jersey, Delaware, Pennsylvania, West Virginia, Michigan) to seven by 2023 (adding Connecticut and Rhode Island).
Alongside legalization, operators have embraced specialized technology solutions. Few build proprietary platforms from scratch; instead, most rely on third-party providers for speed and reliability. Sportsbook platform vendors like Altenar supply turnkey systems, complete with odds feeds, compliance modules, and mobile apps, enabling operators to launch rapidly in new jurisdictions.
In online casinos, content aggregators and white-label platforms allow operators to offer hundreds of slot and table games immediately. Similarly, engagement and retention solutions have become a focal point. Gamification platforms such as Captain Up integrate seamlessly into sportsbook and casino apps, rewarding players with points, badges, and challenges—tools designed to extend playtime and build loyalty.
AI-powered analytics and personalization are also rising. Many operators now deploy AI recommendation engines, fraud monitoring, and automated CRM systems such as Smartico. The outcome is two-fold: lower costs through efficiency gains and stronger player experiences through personalization.
Notably, operators are increasingly moving toward multi-vendor technology stacks. In 2021, many relied on a single unified provider. By 2023, most employed multiple vendors: one for the sportsbook, another for casino content, and additional providers for CRM, payments, and AI analytics. This shift reflects the demand for modular, best-in-class solutions rather than one-size-fits-all platforms.
