The Power of Community: How Web3 Casinos Attract GenZ

Online gamblers tend to churn from one site to the next. Convincing them to stay put is a preoccupation for casino marketers.

How, though? Standard retention tactics can do more harm than good. One study found 86% of players flee iGaming sites after being bombarded by emails, texts, and alerts designed to keep them coming back. To media savvy, digital-first Zoomers who frequent Web3 and crypto casinos, getting messaged in out-of-date formats signals the sender doesn’t quite get the recipient.

In e-commerce, little things matter. If blockchain-based casinos really are gambling’s future, reaching this demographic on its own terms is business critical.

Table of Contents Table of Contents

1. Key Takeaways
2. Striking a Chord With Genz
3. Overcoming Complexity
4. Success Stories
5. Loyalty Factor
6. Embracing Tokenomics
7. The Bottom Line
8. FAQs
9. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Striking a Chord With Genz
3. Overcoming Complexity
Show Full Guide
4. Success Stories
5. Loyalty Factor
6. Embracing Tokenomics
7. The Bottom Line
8. FAQs
9. References

Striking a Chord With Genz

What approaches might make easily-unimpressed Gen Z’s connect with an iGaming brand?

Every business needs to be where its customers are. For Web3 gambling’s very online GenZ and late-Millennial user base, social media is the place.

But your Dad’s social networks won’t do. A 2024 study by Coingecko found that Telegram and Discord are heavily favored communication channels for crypto users and also skew toward Web3 casinos’ core 18-34 demographic.

Why so popular? Both are purpose-built for real-time group communication through voice, video, and text, making them ideal for gamers.

Those features can help bind GenZ bettors to an iGaming brand –?not least by providing a ready-made launch pad for branded apps and widgets that can improve customer experience (CX).

Iris ten Teije, co-founder of Mava.app, a customer support platform for Web3 and crypto companies, told Techopedia that building strong communities on the platforms where customers already spend most of their time aids retention. She said:

“What the Web3 and crypto casino space have in common is that users are always looking for the next airdrop, bonus, or promotion. Once users start playing a game via a Telegram Bot or join your community, you can easily ping them with updates or promotions without them having to proactively go back and visit your website.”

Overcoming Complexity

Zoomers may be comfortable with technology but not all are crypto native. The lingo and technical steps involved in setting up BTC or ETH payments can trip-up new sign-ups. Making that part of the onboarding process easy could be the difference between acquisition and abandonment.

Ten Teije added:

“One of the most significant pain points in online user experience is complexity. Compared to traditional online casinos, crypto casinos struggle with complex payment processes. Lack of user knowledge regarding wallet management and regulatory uncertainties can all lead to player churn.”

To overcome that, several iGaming companies are building entire applications on emerging platforms like Telegram and Discord, where users can interact with each other and the casino’s customer success team. This personal, community-driven approach fosters stronger brand loyalty.

“It’s a common strategy in Web3 generally but still fairly new in the iGaming industry,” ten Teije said.

Success Stories

One company testing the waters is Turkish Web3 casino Casinogram, has built a Telegram bot (@casinogramcom_bot) that lets users play casino games directly inside the Telegram interface and handle transactions in-chat.

A company spokesperson told Techopedia that the first iteration of the app proved to be confusing for some players.

“To improve usability, we transitioned to a more intuitive model where players can now use the ‘Play’ button to launch a mini app within Telegram. This change has created a more user-friendly experience, allowing players to continue their Telegram conversations while simultaneously playing games on Casinogram. They also benefit from our real-time surprise promotions, which enhance engagement and entertainment. Such optimizations are critical for retention.”

Casinogram also has a dedicated Telegram group (@casinogramsocials) where it shares animated content using Telegram’s “Topics” feature. The idea is to create a sticky and engaging environment where users can access exclusive promotions.

“A platform like Telegram allows players to interact effortlessly with each other and with our support team,” the company said, “fostering a stronger sense of community and increasing user loyalty.”

Loyalty Factor

The real measure of success for any such initiative is simply how effectively it keeps players coming back and betting more.

Steven Salz, CEO and co-founder of Canadian eSports betting site Rivalry, told Techopedia:

“Competition is a major factor for all online betting sites. Consumers have increasingly more options, whether that’s in regulated jurisdictions or the grey market.”

Much of that innovation is happening on the crypto side, he adds, where the experience is tailored for digitally native consumers versus those in their 40’s or 50’s.

One example is a more comprehensive VIP and loyalty program, “where they can deliver a super sticky experience for the user. Rivalry launched its VIP program in Q3, and there’s a clear positive impact on retention and engagement from our players.”

Embracing Tokenomics

Another area where Web3 and crypto casinos are innovating new retention strategies is the use of proprietary crypto tokens.

According to Salz, Rivalry’s soon-to-be-launched NUTZ token, for example, will allow players to “earn as they bet.” He said:

“Win or lose, customers will see NUTZ accumulating in their account, which can then be exchanged for wagers and other perks on the site or traded off-platform. The technology adds another rewards layer for the user at a time where customer value is crucial in the space.”

Exclusive games and product offerings are also seen as a plus. Salz added:

“Having a comprehensive range of payment options, exclusive offerings, and sophisticated rewards schemes (can be) major advantages.”

Mava’s ten Teije points to Bag.win as a casino token success story. The metaverse-focused Web3 gambling platform’s BAG coin can be purchased on major crypto exchanges like Uniswap and used to win cashback and referral awards. It’s used to extend winning possibilities, but also gives token-holders a personal stake in the wider ecosystem, giving them the ability to vote on key decisions.

As the ecosystem grows, the hope is that BAG’s value will grow too, encouraging users to stay engaged and invite others to join.

The Bottom Line

Speaking at the Zebu Live Web3 industry event in London last October, Animoca Brands CEO Robby Yung expected every Web3 business to adopt Telegram in some way. He said:

“From DeFI to gaming, anybody with a Web3 app will need a Telegram strategy for onboarding new users because it represents a combined vector for distribution, advertising, and marketing.”

But, “building a community and finding new ways to engage users are means to an end, not the goal,” added ten Teije. “Whether you operate a Web3 platform or a traditional online casino, the key metrics that matter remain retention, conversion rate, and time spent on the platform.”

FAQs