With increased regulation, fierce competition and rising taxes, established tier one sports betting and iGaming markets have perhaps never been as unappealing. Operators are enduring squeezed margins as they face compliance costs and larger tax bills. 

GR8 Tech Chief Revenue Officer Sergey Ghazaryan explains that increasing operators are opting to enter so-called tier two and three markets instead of traditional tier ones. He did warn that those who choose to enter these jurisdictions must have a powerful platform to make the most of the opportunities.

SBC News: Why are most operators now turning away from tier one markets; where are the sticking points that make those huge TAMs unappealing?

Sergey Ghazaryan: Tier-One markets still have big numbers, but they’re not always worth the grind for every operator. Competition is fierce, margins are thin, and regulations keep getting tighter and more expensive to follow. It’s a slow game, and every move costs time and money. Tier-Two and Tier-Three markets are the opposite—less crowded, more flexible and faster to deliver results if you know how to work them. 

SBC: Is increasing overregulation meaning that those tier one markets are no longer worth pursuing?

SG: Overregulation doesn’t make Tier-One markets worthless, it just changes the game. These markets still deliver scale and credibility, but you have to be realistic about the cost of playing there. For some operators, that equation simply doesn’t work anymore.

The smarter approach is to treat Tier-One as one part of a balanced strategy. Use them for stability and brand strength, but pair them with Tier-Two and Tier-Three markets where you can move faster, adapt quicker, and see a return in months instead of years. We’ve seen how that combination can boost profitability and resilience.

SBC: Which tier two and three markets are capturing the attention of operators the most?

SG: We’re seeing a lot of momentum in MENA, Southeast Asia, and some surprisingly undertapped pockets of Europe. The lower competition here means operators can enter faster, adapt to local specifics without the bureaucracy of Tier-One markets, and start generating revenue almost immediately. 

SBC: Why are these markets the new battlegrounds of the iGaming industry?

SG: You have room to move, innovate, and tailor offerings to local realities without getting bogged down in Tier One-level market saturation. The numbers make it clear: faster time-to-market, lower acquisition costs, and breakeven reached sooner—if you invest in the right tools. But these opportunities come with a catch: they demand precise local knowledge, cultural fluency, and operational discipline. Operators who approach them as core growth strategies—not side bets—are the ones turning Tier Two markets into sustainable growth drivers.

SBC: How can operators utilise smarter technology and platforms to accelerate their ambitions in these markets?

SG: The right platform positions you to dominate. The first priority is speed: launching in weeks rather than months with pre-set configurations for payments, content, and UX tailored to local realities. The second one is precision: choose the approach—single-vertical focus, multi-vertical integration, or tailored market entry—that aligns with your strategy, knowing each option is built on the same high-performance core. The third is agility: as markets shift daily, real-time data and AI-driven optimisation let you adjust product, marketing, and risk instantly, so you’re always ahead of the curve.

SBC: What solutions does GR8 Tech have that can support operators in these markets?

SG: We offer three powerful ways to match your market ambitions with the right tech. For operators wanting to go big from day one, our Hyper Turnkey delivers a fully integrated sportsbook and casino, optimised to work together for maximum performance.

If the goal is to quickly and efficiently launch an addition to a casino, ULTIM8 Sportsbook iFrame provides a best-in-class sportsbook solution that’s fast, focused, and built for scale. And for those looking to supercharge their gaming offering, our Infinite Casino Aggregation connects you to a massive library of top-tier content with smooth and easy integration. Each solution comes geo-ready, performance-tuned, and built to move fast—so you can enter and scale efficiently in the industry’s most dynamic markets.

SBC: There are naturally complexities and challenges to entering new markets; what are these challenges and how can you help solve them?

SG: One of the biggest challenges is navigating compliance. Requirements can vary wildly between countries, change often, and sometimes conflict with each other. One of the recent industry surveys by Vixio noted that over 85% of suppliers agree: regulators often add new rules without fully considering the technical impact, which creates extra costs, delays, and headaches.

The other big hurdle is market fit. You can’t just copy-paste a Tier-One strategy into a new market and expect it to work. Local buying power, payment preferences, player behaviour, even cultural nuances—all of that can make or break your launch.

So while the challenges are real, regulatory friction, technical compliance, and cultural fit, they’re also solvable if you enter with a plan that’s built for that specific market from day one.

Where we come in is with geo-specific presets on our platform: we’ve already done the market research, prepared the compliance and product setup, and tailored the player experience to local realities. That means operators can enter faster, avoid costly trial-and-error, and hit revenue targets sooner.

SBC: What plans does GR8 Tech have for SBC Summit in Lisbon next month?

SG: At SBC Lisbon, we’re bringing the Heavyweight mindset to life—partnering with operators ready to scale high-performance into new markets. We’ll run live demos of our full tech stack, showing exactly how to launch fast, localise deeply and personalise player journeys at scale.

From geo-ready presets to real-time AI optimisation, visitors will see how we help operators stay ahead when competition is brutal. Our goal is simple: make sure every leader who visits us leaves Lisbon with a clear plan and the tools to win in the industry’s toughest arenas.

Operators can meet GR8 Tech at SBC Summit, stand C350, to explore champions’ strategies for high-performance growth.