Nikolai Golovatsky, founder of the independent consulting firm ANALYTIX, recently detailed the criteria for determining iGaming product scalability. He emphasized that rising traffic metrics often conceal underlying economic inefficiencies rather than signaling readiness for expansion.
Golovatsky noted that companies frequently mistake increased ad spend for product growth. He stated that true scaling requires a growing base of retained users to improve unit economics. If metrics rise solely due to a larger traffic budget without organic user growth, the business is merely increasing expenses rather than building value.
He advised operators to assess whether the product would continue to grow if the traffic budget remained static.
Retention and Bonus Dependency
The expert highlighted retention rates as a critical indicator. He explained that if user acquisition increases while retention declines, the product fails to generate long-term value, leading to a drop in Lifetime Value (LTV). Additionally, Golovatsky warned against relying on aggressive welcome bonuses to drive growth, suggesting that businesses must verify if their product retains users once promotional support is removed.
Traffic Diversification and Data Analysis
Diversification of traffic sources is essential for stability. Golovatsky advised that if a single channel or a small group of channels accounts for over 70% of First Time Depositors (FTD), the product remains too dependent on specific external factors to scale effectively. He also identified a lack of data transparency as a major risk, noting that management must be able to pinpoint specific hypotheses and segments driving growth rather than attributing success to general market trends.
According to ANALYTIX, the optimal time to scale occurs only after a product has demonstrated the ability to maintain stable unit economics and retention rates independently of increased marketing spend.