From Churn to Earn: Retaining Players with SIM-Based Trust.
The high cost of low retention
Player retention is arguably the toughest nut to crack in iGaming today.
iGaming operators pour resources into acquiring new players – through bonuses, ads, and affiliates – only to watch a large portion of those players fade away within weeks or months.
The statistics on churn are sobering: for mobile gaming apps (comparable to online betting apps), Day-1 retention might be 30-40%, but by Day-7 it drops to around 15%, and by Day-30 only about 5-10% of players are still active.
In other words, the vast majority of new users stop playing within the first month. One industry analysis found monthly churn rates of 60-70% in the first 30 days for gaming apps.
Over a longer horizon, the picture isn’t much better – over half of iGaming players will leave within their first year.
And loyalty to a single platform is rare: 77% of bettors say they’re willing to switch to a different site, and only about 4% stick exclusively with one platform for more than a year.
This churn dynamic creates a revenue treadmill: operators must continuously acquire new players just to maintain their customer base, let alone grow it.
It’s an expensive problem – acquiring a new customer can cost 6-7 times more than retaining an existing one. Little wonder that improving retention is seen as the key to profitability; even a small uptick can yield big wins. (In fact, a famous business statistic – echoed in gambling – notes that a mere 5% increase in retention can boost profits by 25% or more.)
Why do so many players churn? The reasons range from better offers at competitors, to boredom, to poor user experience or trust issues on the site. In iGaming, two major culprits that drive players away are friction (anything making the playing experience inconvenient or frustrating) and security lapses (anything making the player feel their account or money isn’t safe).
Ironically, measures intended to ensure security – like KYC checks or withdrawal verifications – can introduce the very friction that causes impatience and drop-off. It’s a delicate balance.
For instance, research shows 27% of players cited deposit/withdrawal issues as a top reason for quitting an iGaming operator. If adding funds or cashing out winnings is too slow or gets flagged for extra verification steps, players may not come back.
32% of bettors said they would abandon an app entirely if funding their account takes too long – an alarmingly direct link between back-end processes and retention.
Similarly, if a user runs into login problems or app glitches, they might not bother returning; 44% of players report they would uninstall or leave a platform that is consistently buggy or unresponsive.
All these pain points show that the modern player has low tolerance for friction – if your platform doesn’t offer a seamless, instant experience, there’s likely another one that does.
Building retention with mobile identity – Less friction, more security
Mobile identity solutions offer a compelling way to tackle those exact pain points of friction and security, thereby improving retention. The idea is to use the player’s mobile phone (and the SIM within it) as a trusted identity and authentication device throughout their journey, from login to transactions. Here’s how this can boost loyalty:
Instant, Password-Free Logins: One way to lose a returning player is to have them struggle with remembering passwords or waiting for SMS codes each time they log in. With SIM-based authentication (like Sekura’s SAFr Auth), the phone itself becomes the authentication token. As long as the player’s SIM is present, the app can silently verify their identity in the background, eliminating the need for traditional logins or one-time passwords.
This creates a frictionless login experience – players can jump back into the action with one tap, almost like a VIP being recognised at the door. Reducing such barriers has a direct effect: fewer users give up during sign-in. In fact, replacing clunky SMS OTP flows with SIM authentication has been shown to reduce abandonment in sign-up and login processes, improving overall retention of active users. It gives every returning customer the red-carpet, “VIP treatment” which makes them more inclined to stick with your platform (who doesn’t love convenience?).
Fast and Secure Payments: As noted, delays in deposits or withdrawals are retention killers. Mobile identity can help here by streamlining verification when a player transacts. For example, if a user requests a withdrawal, typically the operator might require additional ID checks if the amount is large or if it’s the first withdrawal (to comply with anti-fraud and AML rules). With MPM in place, much of that identity assurance has already been done in the background – the operator knows this device and number belong to John Smith and that his details match the verified records.
This confidence can allow for faster automated approvals of withdrawals or fewer hoops for the player, speeding up payouts without sacrificing security. Likewise for deposits: if a deposit triggers a security flag, the presence of a SIM-based authentication (confirming the account owner is indeed making the transaction) can resolve it quickly rather than requiring a manual review. The result is fewer interruptions to play and finance flows, meaning players don’t get frustrated and leave due to payment friction .
Stopping Account Takeovers and Fraud: Nothing will drive a loyal player away faster than having their account compromised or funds stolen. Online betting accounts are juicy targets for criminals (stored payment info, withdrawal options, personal data). Mobile identity tools significantly enhance account security through features like real-time SIM swap detection. SIM swap fraud – where someone hijacks your phone number to intercept SMS 2FA and reset passwords – is a growing threat in online gaming.
Sekura.id's solution, for instance, monitors if a user’s SIM was recently changed or ported and can alert the operator to step up authentication in that case . This means a fraudster trying to take over an account by transferring the phone number will be stopped, protecting the player’s account. By shielding players from fraud, you not only prevent immediate losses but also earn their long-term trust. Players who feel safe and protected are far more likely to remain with that platform (trust is a foundational element of retention in any digital service).
Seamless Compliance (KYC) Updates: Over a long player lifecycle, there will be moments when you need to re-verify identity or documents (for example, when a player hits a certain deposit threshold or after a set time per regulations). Traditionally, that could mean asking the user again for documents or info, which is a chance for them to drop out. With mobile identity, much of the needed info can be re-checked automatically via the mobile network.
Need to confirm the player still resides in the same country or is still using the same name/phone? An API call can refresh those details. This keeps the compliance overhead invisible to the user, thereby removing another potential churn point. It’s especially helpful for younger players who may not have extensive records – instead of repeatedly asking them for more proof of identity (which they may not have), the phone-based identity continues to vouch for them in the background .
Personalisation and VIP Engagement: Retention is also driven by how well you tailor the experience to players (personalised offers, bonuses, communications). Knowing the verified identity of a player can feed into segmentation and VIP handling. For instance, if through MPM you confirm a player’s age is, say, 21 and they have a history of prompt bill payments (indicating good standing), you might fast-track them for a higher tier of loyalty rewards or lower deposit friction.
In one case, a Canadian operator struggled to retain young adult players (19–22) because many would drop off during verification or not fully engage; after adopting mobile identity verification, they were able to onboard and retain more of this demographic, leading to measurable increases in conversion and revenue from that group.
The implication is that those players stayed active (retained) rather than churning, once the barrier of clunky verification was removed. Additionally, by having robust identity checks, operators ensure that promotions like VIP programs are not abused by fake accounts, so they can confidently invest in real high-value players. This means your genuine VIPs get better perks and recognition, further cementing their loyalty.
Retention wins with mobile identity
To illustrate, consider the common scenario of a sports betting app during a big event (say the World Cup). Many new users sign up, but many will leave right after the event.
Now imagine implementing mobile identity across the user journey: New sign-ups verify instantly via phone (no drop-off at registration), they log in with one tap every day to place bets (no password fatigue), and when they win and want to withdraw, it’s processed near-instantly because their identity and payment details check out via the SIM.
During this time, suppose one hacker tried to SIM-swap a high-roller’s number to steal their winnings – the system caught the SIM change and froze that withdrawal, safeguarding the VIP. The high-roller might not even know, but they continue betting happily, and perhaps even get a proactive “all is well” message from support.
Meanwhile, the honest casual players enjoy quick payouts and few frustrations, so they stick around for the next event rather than cashing out and vanishing. This is not just a scenario – it’s the kind of holistic retention boost that mobile-centric identity and security measures are enabling.
As another data point, sportsbooks reported that geolocation and technical issues (like an app glitching during a live bet) also drive churn . While mobile identity doesn’t fix geolocation, having a unified mobile-based authentication can help here too by ensuring the user session remains active and less error-prone (e.g., fewer login timeouts).
There’s also evidence that players value smooth experiences highly – 72% of bookmakers in a survey said personalised, seamless user experience was the most important factor for retention. Mobile identity contributes to that seamlessness. It quietly handles the “trust” layer of the experience, so that players can focus on the fun parts (placing bets, playing games) without distraction.
Loyalty in the long run
At its core, retention comes from player satisfaction and confidence over time. By using mobile identity verification, operators can create a safer and smoother environment that encourages players to keep coming back.
When a user knows they can log in securely with minimal effort, fund their account and withdraw winnings without hassle, and that the platform is actively protecting them from fraud, they develop a preference for that platform.
Given how easily players can switch services, building that kind of loyalty is gold. And loyalty directly feeds lifetime value – a loyal player will not only continue playing (generating revenue) but might also become an ambassador, bringing in friends via referrals or word-of-mouth.
To put a number on the upside: high-value players drive a disproportionate share of revenue, as mentioned (just 2% of players > 50% of revenue).
Retaining those players through excellent security and user experience is absolutely critical – losing even one VIP due to a preventable account issue or frustration can seriously dent revenue.
Mobile identity offers a way to treat those VIPs with kid gloves technologically (instant recognition, priority handling, no security scares) without having to manually white-glove every interaction. And for the broader player base, it removes many small friction points that can add up to big churn if left unaddressed.
In the battle for player retention, mobile identity is the not-so-secret weapon.
It enables operators to tighten security and compliance in a user-friendly way, effectively killing two birds with one stone – players are both safer and happier.
By using solutions like Mobile-to-Person Match and SIM-based authentication, iGaming platforms can significantly reduce the silent churn caused by login fatigue, slow KYC checks, and fraud fears.
The end result is a more loyal player base that feels valued and protected, and therefore sticks around longer. In a market as competitive and fast-moving as iGaming, keeping players engaged and loyal is the only sustainable path forward.
Mobile identity technology provides a fresh, innovative approach to do exactly that – building trust and convenience into every interaction.
As the industry evolves, those who adopt these mobile-first identity strategies are finding that players reward the effort with lasting loyalty and higher lifetime value.
After all, when players feel like VIPs from day one to day 100, why would they ever want to leave?
Find out more about mobile identity solutions for iGaming and gambling
Sources and References:
GameAnalytics – Mobile Gaming Benchmarks
Business of Apps – App Retention Rates
Nudge – Day 1, 7, and 30 Retention Benchmarks
Forbes – Customer Retention vs. Acquisition Cost
Optimove – Retention Increases Profitability
Blask iGaming CAC Benchmarks
Slotegrator – Why Do Online Casino Players Churn?
SoftSwiss – Key Retention Metrics & UX Expectations
IDlayr – SIM-Based Mobile Authentication
MEF – SIM Authentication for Identity and Fraud Protection
Head of Marketing | Sekura.id | Mobile Identity Marketing Expert
1moRetention is the new growth. With churn in UK gaming apps hitting 65% within 30 days, it’s time to reimagine loyalty through mobile intelligence. Our UK API stack helps platforms protect VIPs, prevent fraud and deliver frictionless logins – keeping players active, secure and loyal.