For the better part of its lifespan, the UK gambling market has been dominated by the likes of William Hill, Betfred, and Ladbrokes, among others – brands with roots tracing way back into the last century.

However, while these legacy operators have each managed to amass a large loyal customer base over the years, it could be argued that part of the reason for it is that for a long time there simply wasn’t any alternative.

In the last decade, advancements in technology have suddenly levelled the playing field, allowing for challenger brands to scale at such rapid speeds that they are now fighting with the big guys over market share. A shining example of that is Midnite.

Founded in 2015, Midnite together with its CEO and Co-Founder Nick Wright, have since broken the mould to become a formidable force on the UK market in the span of just 10 years. Wright dedicates this success to Midnite’s “obsession” with building in-house products tailored for a new breed of customers – the digital natives.

Monzo of betting

Just like his company, Wright is also young. In the sea of old guard CEOs, this comes as a crucial advantage for understanding the needs of the modern customer.

Wright looks for inspiration at how other challenger brands, especially those in finance like Monzo and Revolut, are effectively targeting early adopters where the mindset is mobile-first. 

“Customer expectations today are mobile-first, they want native products that just work,” he says. “I think we as an industry haven’t caught up with just what digital native expectations are.

“Tailoring our offering to those customers is the foundation to what we believe at Midnight – we’re like the Monzo of betting. So, digital natives, that’s where the opportunity is.”

How to be famous

Midnite has clear ambitions to grow from being a challenger brand to sitting among the top tier of UK operators – the Betfreds, William Hills, bet365s etc. Courting the ‘digital natives’ of the 21st century, as referenced by Wright, is the cornerstone of its strategy.

But to capture this new type of mobile-first customer, Midnite needs to be trendy, the firm’s CEO believes. “Our ambition is being tier one,” Wright says. “You have to be famous as a brand in order to reach that status.”

Wright and Midnite understand that very well, and so marketing has become one of its number one priorities. Earlier this year, the firm launched its wide-scale “Above the Line” marketing campaign across TV and streaming platforms.

“You could have the best product in the world. If you’re bad at marketing, it will flop. The same thing happens when you have incredible marketing and a terrible product – you’ll still not be able to get the most out of it. 

“So the recipe has to be the best of both worlds here. You have to be the best at your product, which we think is how you build a long-term winner in any consumer market, and then you have to have a brand that makes customers not want to leave.”

Midnite’s brand visibility is also being significantly boosted through sports sponsorships like the one with Southampton FC – and much like the product side of the business, Wright says that the advertising approach also just works.

“We’re definitely seeing the results across user acquisition and how we’ve seen an uptick in where customers come from. We’re seeing it from the halo effect in retention in users and, most importantly, word of mouth. We’re seeing a lot more word of mouth. So, yeah, it’s working, and it’s just the beginning.”

To repeat Wright’s words, however, even the best marketing in the world can’t help you if your product is bad. Midnite is confident that it has found the perfect balance, and it all stems from owning its own product.

The risk is the opportunity

Building a business in an environment where consumer behaviours are constantly shifting is a risky endeavour, but having full control over your offering does add the necessary flexibility to adapt to such circumstances.

“We believe that the dynamics in regulated markets are shifting, or will shift over the next few years, towards operators that are product-led,” Wright predicts.

He points at product execution as the main challenge in this landscape – from having the right long-term vision to attract capital, to possessing the right amount of knowledge and expertise that allow you to build it.

For Wright, however, having mastered the ability to build its products from the ground up, coupled with the slow speed at which bigger companies adopt trends, gives Midnite an unprecedented opportunity to keep on thriving.

“Our ability to build is what sets us apart, and it will always be in our DNA. We will never stop that. That’s always gonna be what we do.”

Watch the space

Wright sees continuous growth for Midnite in the next 12 months – featuring bigger new products and enhancements to its existing offering. The firm has also set its sights on becoming a top player in the UK casino market over the course of the coming year.

Investors certainly seem convinced by Midnite’s confidence. The firm has raised millions this year to support its ambitions, including a $10m (£8m) Series B funding round in April and a $100m credit facility earlier this month. Much of this has gone towards its digital native-focused marketing campaigns.

In typical fashion for a challenger brand and its young management, Wright effectively hypes up what’s to come: “There’s going to be items where you can really see the differentiation between what’s possible and what isn’t when you own the technology. All I can say is watch the space.”