Why iGaming Operators are Leaving Mailchimp

Mailchimp, once a popular choice, is seeing an exodus of iGaming companies. These businesses are not just changing platforms on a whim - they're responding to real challenges and limitations.

The reasons behind this shift are specific to the iGaming industry. From regulatory concerns, and pricing structure to specialized marketing needs, iGaming operators have unique requirements that some platforms struggle to meet.

In this blog, we'll explore the main factors driving iGaming operators to leave Mailchimp. We'll look at the challenges they face with the platform and what alternatives they're choosing instead. Whether you're considering a switch or just starting your email marketing journey, this information will help you make an informed decision for your iGaming business.

6 Reasons Why iGaming Operators are Leaving Mailchimp

Cost-effectiveness

Mailchimp's pricing structure becomes steep as iGaming companies grow their email lists. The platform often charges for features that aren't crucial for iGaming, inflating costs unnecessarily.

To put this into perspective, consider a growing iGaming company with 50,000 subscribers. On Mailchimp's Standard plan, this would cost around $212 per month. If the company grows to 100,000 subscribers, the cost jumps to $353 per month - a significant increase of over 66%. What's more, these plans often include features like postcard marketing or social media tools that many iGaming companies don't need or use due to regulatory restrictions.

For iGaming businesses that send high volumes of emails, the costs can be even more prohibitive. Mailchimp's pay-as-you-go option, which might seem attractive at first, can quickly become expensive. These inflated costs can have a real impact on an iGaming company's bottom line. For instance, if email marketing typically generates a 20% return on investment (ROI), unnecessarily high ESP costs could reduce this to 15% or lower, significantly impacting the efficiency of marketing spend.

By switching away from Mailchimp, iGaming companies can find email services with more flexible pricing. Alternatives like SendX offer affordable pricing as they charge based on the number of subscribers and every tier gets access to all features. By choosing SendX or other affordable options, iGaming companies can:

• Lower overall costs for email marketing
• Get more budget for other marketing initiatives
• Access to iGaming-specific features without paying for unnecessary extras
• Scale email campaigns without fear of sudden price jumps

Email Deliverability

Mailchimp's deliverability rates often fall short for iGaming emails, which face higher scrutiny from email providers like Gmail. This results in more messages landing in spam folders or not being delivered at all. For iGaming businesses, this means fewer players seeing promotions, updates, and offers, directly impacting engagement and revenue.

The problem goes beyond just low open rates. Mailchimp's algorithms and sender reputation systems aren't optimized for the unique challenges of iGaming content. Words commonly used in the industry, such as "bet," "win," or "casino," can trigger spam filters more easily. This means that even well-crafted campaigns might never reach their intended audience.

Mailchimp's limited authentication options and lack of specialized tools for managing sender reputation in the iGaming context further compound the deliverability issues. This can lead to a vicious cycle where poor deliverability leads to decreased engagement, which in turn further harms deliverability.

Switching to an ESP that handles email marketing for other iGaming businesses can significantly improve deliverability and ensure that the business gets:

• Higher inbox placement rates
• More players seeing and engaging with emails
• Better ROI on email marketing efforts
• Tools to monitor and improve deliverability over time
• Guidance on creating iGaming content that avoids spam triggers.

Automation Capabilities

Automation is a game-changer in email marketing, and iGaming operators need powerful tools to stay competitive. While Mailchimp offers some automation features, many operators find them basic or limited compared to their complex needs. This has led to a search for ESPs with more advanced automation capabilities.

iGaming companies often require sophisticated automation workflows. These might include personalized welcome series for new sign-ups, re-engagement campaigns for inactive users, or timely event-triggered emails based on user behavior. Advanced ESPs offer drag-and-drop automation builders, allowing marketers to create complex, multi-step campaigns without needing technical skills.

Moreover, these automation tools often integrate better with iGaming platforms and customer relationship management (CRM) systems. This allows for more precise targeting based on user data, betting history, or game preferences. Some ESPs like SendX also offer AI-powered features that can predict the best time to send emails or automatically optimize subject lines. By leveraging these advanced automation capabilities, iGaming operators can create more engaging, personalized email experiences while saving time and resources.

High Volume Sending

Mailchimp's approach to high-volume sending can be a major headache for iGaming businesses. The platform often imposes strict sending limits or throttles large campaigns, which can throw a wrench in the works for time-sensitive promotions or important player communications. Imagine trying to announce a big tournament or a limited-time offer, only to have your emails trickle out over hours or even days. This delay can mean missed opportunities and frustrated players.

For iGaming companies, the ability to send large volumes of emails quickly and reliably is crucial. By switching to an ESP that specializes in high-volume sending, these businesses can unlock new possibilities. They can reach thousands of players simultaneously with breaking news, last-minute offers, or event updates. This speed and reliability become especially valuable during major sporting events or casino promotions where timing is everything.

An ESP that handles high volumes well allows iGaming businesses to scale their email marketing efforts alongside their growth. As the player base expands, the email marketing strategy can keep pace without hitting arbitrary limits. This means maintaining consistent communication with players and iGaming operators alike, whether it's a small group of VIPs or the entire database. The result is better engagement, improved player retention, and ultimately, a stronger bottom line.

Compliance Features

The iGaming industry operates in a complex regulatory environment, and Mailchimp falls short when it comes to built-in compliance features. This gap forces iGaming businesses to create cumbersome manual processes or, worse, risk non-compliance. Given the severe penalties for regulatory missteps in the iGaming world, this is a risk many companies can't afford to take.

ESPs that offer built-in compliance tools can be a game-changer for iGaming businesses. These platforms often include features like automatic age verification in sign-up forms, ensuring that only eligible players join mailing lists. They make it easy to implement double opt-in processes, a crucial step in many jurisdictions. Some even offer customizable footer content, allowing businesses to include required legal disclaimers in every email automatically.

Perhaps most importantly, these compliance-focused ESPs often provide robust geo-targeting capabilities. This feature ensures that promotions and offers only reach players in regions where they're legally allowed. It's a crucial safeguard in an industry where regulations can vary widely from one jurisdiction to another. Additionally, these platforms typically offer comprehensive record-keeping features, making it easier to demonstrate compliance during audits. By switching to such an ESP, iGaming businesses can focus on creating engaging campaigns, confident that they're meeting regulatory requirements without excessive manual effort.

Industry Acceptance

One of the most significant risks iGaming businesses face with Mailchimp is the platform's ambiguous stance towards the industry. Mailchimp's terms of service can be unfriendly to iGaming, sometimes resulting in unexpected account suspensions or even permanent closures. This instability poses a major threat to ongoing marketing efforts and, by extension, to player relationships and business continuity.

Choosing an ESP that openly welcomes iGaming businesses brings several benefits:

• Confidence that your account won't be suddenly terminated
• Support staff who understand iGaming-specific challenges and needs
• Features and templates designed with iGaming in mind
• A partnership approach, helping your business grow in the long term
• No need to hide or downplay the nature of your business
• Ability to fully leverage email marketing without fear of platform restrictions.

Which Email Marketing Software is a Good Alternative to Mailchimp?

If you're a responsible…

• Online casino
• Gambling business
• iGaming operator
• Mortgage marketer
• Agency, or
• Affiliate marketer

…Mailchimp might not welcome you. 

Their terms of service are not always friendly to iGaming businesses. In fact, some iGaming companies have faced account suspensions or closures due to the nature of their industry. This uncertainty can be a major risk for your email marketing efforts.

In contrast, SendX welcomes iGaming businesses and understands the unique needs of the industry. As an alternative to Mailchimp, SendX offers:

• Competitive pricing tailored for iGaming companies
• Strong deliverability rates, crucial for reaching players
• Advanced automation tools to create engaging player journeys
• Compliance features to help navigate regulatory requirements
• Dedicated support for iGaming-specific challenges.

By switching to a platform like SendX, iGaming businesses can avoid the risks associated with Mailchimp while gaining access to features designed for their industry. This can lead to more effective email campaigns, better player engagement, and ultimately, improved business results. Claim your 14-day free trial of SendX here.