Regional casinos aren’t just “smaller.” They’re often faster, more local, and more personality-driven than corporate competitors.
The real enemy isn’t the big box next door. It’s the indifference and sameness between promotions and offers.
This post will help you choose what you’re challenging and how to act on it.
This post is for:
I’ve been lucky to work in many markets, from billboard-worthy Las Vegas properties to small regional casinos where we had to be more creative just to stay competitive. Some of my best work happened in those smaller markets.
Many years ago, I was introduced to the concept of a “challenger brand.” Before that, I’d worked for industry leaders. This time was not the case. Being the underdog was new and uncomfortable, but it was my reality.
We don’t often see today’s dominant brands as former underdogs, but many started that way. Remember when Netflix mailed DVDs? There was a Blockbuster a short drive away. Why would anyone use this new service?
Today, Netflix has put most video rental locations out of business while becoming one of the most prolific producers of original programming. Imagine the conversation at any big studio when Netflix announced it would start making content.
Here’s what matters: although Netflix was the underdog for years, they never acted like it. They set out to be the best and biggest by acting like they already were—with the confidence of a first-place brand.
You can do the same. Whether you’re a new market entry, a property that’s fallen behind, or one facing a category-killer competitor, you can think like a challenger brand and become a market leader.
Adam Morgan first introduced the concept in his 1999 book Eating the Big Fish. Associated initially with underdogs, today the focus is less on WHO you’re challenging and more on WHAT you’re challenging—what drives your category or shapes the guest experience.
It’s defined by a mindset: ambitions bigger than your immediate resources, and a willingness to do something bold that goes against existing conventions.
Brands both large and small can find themselves in challenger roles.
The idea of being a challenger brand can be reduced to a shallow David vs. Goliath concept, but this notion can block market leaders from adopting a challenger’s nimble mindset. In other words, although what follows could be a playbook for a small operator, large operators can also learn valuable lessons. Moreover, given the shift in consumer habits, it could be a useful strategy for all of us.
Before you go further, ask yourself which category assumption or market convention you’re challenging:
Pick one. That’s what you’re positioning against.
For smaller casinos, adopting a challenger mindset can be essential for standing out from the competition. This strategy harnesses the idea of “eating the big fish” by identifying ways to leverage competitive advantages they may not even be aware of and turning a smaller entity into a powerhouse. It also allows them to modernize traditional practices and processes, giving casinos with limited resources an edge in agility that often bog down larger competitors.
Ultimately, taking on this pioneering attitude can help level the playing field for smaller casinos, allowing those who take it seriously to break away from the competition and come out ahead.
Of course, this doesn’t come without risks. There will always be a certain level of uncertainty when trying something new or taking on larger players. Still, a well-crafted strategy focused on customer satisfaction can help smaller casinos carve out their place in the industry.
The first step is changing your view from a state of the marketplace to a state of mind, a shift from who you are challenging to WHAT you are challenging. Many brands we see in our lives have found success by shifting the view: Walmart, Nike, Apple, Virgin, Target, Dove and more. Your brand could easily be added to this list.
There are ten central types of challenger mindsets. Understanding where you fit provides clarity to your strategy.
Bringing access to all, especially what’s been available only to an elite audience.
Southwest Airlines made flying accessible to everyone by eliminating the class system, simplifying pricing, and treating every passenger the same.
VIP moments for mid-worth players—surprise upgrades, exclusive access, recognition without requiring whale spend.
Offering something significantly superior to the status quo.
Casper revolutionized the mattress market by eliminating showrooms, simplifying the buying process, and delivering directly to your door.
Eliminate friction—instant offer clarity, faster redemption, a simpler tier structure that players actually understand.
Deliberately swimming against the tide.
Patagonia ran “Don’t Buy This Jacket” ads, challenging consumption culture while building a more loyal customer base through environmental values.
Stop discounting as default. Win on experience, consistency and hospitality standards instead of promo depth.
Seeing yourself in a battle between small and big, good and evil, us and them. Chutzpah is a thing.
Dollar Shave Club launched with a viral video mocking Gillette’s overpriced razors and corporate complexity.
Take a stand—”local people over corporate playbooks”—without trash-talking competitors directly.
Using wit, humor, and provocation to entertain and engage.
Liquid Death sells canned water with death metal branding and absurdist humor, making hydration memorable in a boring category.
A voice people recognize in SMS and email—funny, bold, unmistakably you.
Championing local needs, culture, and people through deep community understanding and presence.
Trader Joe’s creates a neighborhood grocery feel with local sourcing, crew members who know regulars, and products you can’t find anywhere else.
Own community partnerships and events where you’re the hub, not just a sponsor.
Wearing your purpose on your sleeve, usually focused on righting an existing wrong.
TOMS built a business model around giving—buy a pair of shoes, and they provide a pair to someone in need.
Lead with values—superior service, community reinvestment, and a visible commitment to responsible gaming.
Questioning an entire category because new times call for new brands.
Airbnb questioned whether travelers needed hotels at all, creating a peer-to-peer alternative that redefined hospitality.
Mobile-first convenience—cashless where allowed, modern UX, social-friendly moments players want to share.
Driven by mandate, creating people-powered alternatives.
Costco’s membership model puts customers in control—they vote with their wallets, and the company optimizes for member satisfaction over short-term profit.
Player advisory council or co-created events—customers help shape your calendar and offerings.
Challenging industrialism in the category by appealing emotionally.
Zappos became legendary not for shoes but for customer service—10-hour phone calls, surprise upgrades, handwritten notes that made every interaction feel personal.
Frontline heroes, familiar faces, “we know you” energy—make staff the brand, not the building.
You may immediately see yourself in one of these categories, but as I’ve always said, brands are living organisms. Just as we grow and change, so do our brands. While I invite you to see yourself as one of these types of challenger brands, I advise you to review this periodically.
You don’t need a massive budget to act like a challenger. Here’s what it looks like:
A Local Hero casino became the community’s Friday-night ritual by hosting a monthly food-truck rally featuring live local music. Players came for the experience, stayed for slots, and left feeling part of something.
A Dramatic Disruptor property simplified its entire offer structure, and NPS scores jumped 18 points in six months because players finally understood the value.
An Irreverent Maverick voice turned SMS into a conversation. Instead of “Earn 2X points this weekend,” they sent: “Your lucky machine misses you. Come say hi.” Open rates tripled.
None of us can afford to rest on our laurels. Technology transforms our business daily, guest expectations continue to shift, and more competitors reach for our customers’ wallets.
A challenger mindset keeps you focused on the next edge and prevents complacency. Here’s how to develop it:
Understand what’s challenging you and what change you’re trying to bring about. For Netflix, it wasn’t just getting subscribers. It was changing how people rented movies.
As casino operators, we know we can make a splash with new slots, rooms, and restaurants. But we now realize our competition isn’t the next property up the road; it’s virtually any way an adult chooses to spend leisure time and dollars.
Your move: Ask yourself, “What am I challenging? What bold, ambitious change am I trying to bring about?” Write a one-sentence statement: “We exist to challenge ___ by ___.”
Consider the companies launched in someone’s garage, like Apple. When you read their history, it’s mind-boggling how much they didn’t know about the categories they were entering. Innocence can be unexpectedly beneficial.
If you follow the Savannah Bananas, you know about owner Jesse Cole and his over-the-top meetings where employees think with no restrictions. The Bananas are creating a new way to enjoy America’s pastime without the confines of usual rules.
Your move: Ask yourself, “Can I change the way I ask the central question facing my business?” More importantly, can your team members change their views? List five “category rules” you’ll question—offers, arrivals, redemption, events, and host touchpoints. Then ask your team to do the same.
I love looking at other industries to see what they are doing right and how I can use the same idea. Method founder Eric Ryan once said, “All the big ideas I could ever need are already out there. I just have to find them and work out how to apply them to my business.”
IKEA looked at an entirely different category and overlaid those rules onto furniture retail. One result? Their Guggenheim-inspired store layout.
Your move: Run a 30-minute “outside-industry swipe file” meeting. Have your team bring examples from retail, QSR, airlines, or sports teams and explore how to adapt them.
Do you know the old saying, “if you don’t stand for something…”? It’s similar to finding your brand’s religion. What does your brand stand for that is something deep at the core of the brand? What is it that provides clarity, direction and focus on everything that is done? What is it that will draw others to join you?
Challenger brands build lighthouse identities—a compelling truth that invites customers to navigate BY them, consistently projected in everything they do, not merely through a tagline.
Zappos created a company no one could’ve seen coming by removing friction from buying shoes—easy to shop, easy to return, easy to get help. Today, more businesses guide themselves by the Zappos ethos.
Your move: Choose three non-negotiable behaviors—how you greet, how you resolve issues, how you celebrate regulars. These are your “religion.”
Challenger brands project their beliefs consistently (almost insistently) in everything they do. You notice them even when you’re not looking for them.
The greatest danger for a challenger brand isn’t rejection—it’s indifference.
Consider Virgin’s inaugural flight from San Francisco to Las Vegas. They could’ve done a standard ribbon-cutting. Instead, Richard Branson dressed in a dinner suit and harness and rappelled off the Palm Casino Hotel in front of cameras and crowds. The winds blew him twice against the building, ripping his pants. Mishap? Yes. Unforgettable? Absolutely.
Your move: Consider what your brand could be famous for and pick one idea to implement in your next marketing plan that can make your brand famous. Please do not jump off your building.
Steve Jobs said he was as proud of the things Apple said no to as the things they said yes to. Even small brands need to learn to say “no.”
After discovering that visitors who explored New Zealand enjoyed the experience most, Tourism New Zealand chose to forgo marketing to 90% of its potential audience. They focused on “the interactive traveler”—only 10-15% of the universe—because this group would engage deeply, share their experiences, and return.
Strong brands are single-minded in their communications. What will you focus on with unrelenting passion? What good ideas will you say “no” to?
Your move: Create a “Stop Doing” list. If it doesn’t move trips, retention, or ADT—or if it increases reinvestment leakage—it’s not a priority.
While it may seem like newer or bigger players will always come out on top, casinos with a challenger mindset can become leaders in their marketplaces.
By being different and offering something unique, they set themselves apart and give customers an experience they won’t forget.
Don’t be afraid to challenge the status quo. Your customers will thank you for it.
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