Sue Schneider: Holding the door open for igaming innovators

Source: Sue Schneider

There are few people in the igaming industry better placed to advise on its future than Sue Schneider. With more than 40 years in gambling, and the past 30 of those focused on igaming, there is little Schneider doesn’t know about the nuances and idiosyncrasies of this industry.

Fortunately, her latest venture, Defy The Odds, is all about sharing that wealth of experience to boost innovation, break down barriers to entry, and keep igaming on its ascendancy.

Launched with fellow igaming leaders Paris Smith and Kelly Kehn, Defy The Odds is a startup launchpad on a mission to improve diversity in the industry while supporting a pipeline of fresh ideas and talent.

“Collectively, we figured out that we have 80 years in the industry,” she tells me, “Which is kind of weird given that this is such a young industry.”

Schneider’s career on the igaming side started in around 1995, when her igaming publication effectively became an early affiliate site.

She went on to found seminal industry trade shows GIGSE and AIG, which were sold to Clarion in 2006. In the late ’90s she met and became friends with Smith. A few years later, she got to know Kehn.

Advocating for startups

This past spring, the three were looking for a new challenge to sink their teeth into. They gathered at Smith’s Curacao home to brainstorm ideas, taking a whiteboard down to the poolside to mull the avenues down which their collective experience could take them.

“We love startups, we love innovation, we love diversity. So, it just kind of came together,” she recalls. “At first, we were talking about putting together a fund, but we found out what that entails. None of us were much into the bureaucracy and compliance involved in that.”

Ultimately, they realized that between them they had massive and influential networks they could leverage to the greater benefit of the industry. “At first, we figured we all knew a lot of the same people, but we found out that we don’t as we’ve gotten into it. There are all kinds of people that I know that the other two don’t, and vice versa.

“So, we’ve been leveraging that, and the intent is to give a kickstart to startups, challenging them on their thoughts and what makes sense, helping them with relationships, to give them kind of a quick start.”

Smith and Kehn had numerous investors in their networks, which means Defy The Odds is also in a great position to help startups identify and tap into much needed investment opportunities.

The trio’s high profiles have helped them to find the startups that they’ve taken on. With so much media coverage around Defy The Odds, there is no shortage of interest. “We really thought we were going to have to beat the bushes more, to be honest with you,” Schneider says. “But we’ve been very fortunate to have a fair amount of attention, so they’ve been finding us.”

That said, she is keen to reach more new and interesting founders and is sorry to have found that there are fewer incubators for the industry than she expected. “We’re trying to reach out to various universities,” she says. “We partner with one called Zero Labs, which is in Las Vegas as part of UNLV. They don’t just do igaming, it’s a variety of gaming and hospitality. So, it’s a little broader than our more specific niche, but so far, we we’ve had a pretty steady stream of folks coming in for us.”

Defy The Odds has about eight startups on the books. They start with short-term relationships of around six months, but Schneider says they’re starting to renew “so I guess they’re getting some value.”

Building an igaming community

Schneider, Smith and Kehn have plans to expand Defy The Odds so that it can reach more of the industry. An online platform is in the offing, which aims to create more cohesion by bringing investors, startups, regulators, first-year companies and other subject matter experts, together in one community.

“We’re in the process of building that right now. We just hired an intern from St Louis University, where I live, to work with us to get that built hopefully within the next six months,” she says.

There is still work to be done on refining the business model for the platform, including how best to monetize it. Profluence, a similar platform for sports tech startups has been an inspiration for the new site, which Schneider hopes will launch by early fall this year.

Beyond Defy The Odds, Schneider plays a continuing role liaising with legislators and regulators to smooth the path for igaming businesses in regulated markets. She’s pragmatic about the challenges on both sides but is also a passionate advocate for keeping the path clear for new entrants.

She’s not convinced igaming has reached maturity as an industry, seeing it as a progression via newly regulated jurisdictions. “I started in ‘95 and I’ve seen cycles. A new jurisdiction will open up, there’s a gold rush, everybody runs to get involved with it. Then it gets regulated, then it gets kind of stabilized. Then you get things like these loopholes that people are taking advantage of in the US.”

The “loopholes” she refers to are the prediction markets and sweepstakes causing uproar in various US states. Having seen controversial betting methods evolve into common usage in the past, she is sanguine about the controversy. “A prediction market or sweepstakes: Is that a loophole or is that an innovation?” she queries.

She says the industry “has this habit of being kind of stratified”. From the beginning, she says, “there was always somebody saying, ‘I’m more legal than you are’.” She reflects on starting an early igaming trade association, the Interactive Gaming Council, in 1996. “For better or worse, I chaired that for eight years because nobody else wanted to put their mug out there,” she recalls. “But, you know, it was interesting. We went through a point in about 2004 when one of the larger casino operators and suppliers wanted to kick out all of the sportsbooks in US. They’re going, ‘we’re more legal than you are’. And I tried to explain to them, if you asked any state attorney general which one of you is legal, they would tell you, neither of you are.”

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Challenges to legalized igaming

The existential threat regulation poses to igaming companies is palpable in Schneider’s stories of regulatory realities past, and still very much ring true today. That ongoing fight for legitimacy against a backdrop of fluctuating regulation and public sentiment is an ever-present fact of life for igaming businesses across all jurisdictions. “I mean, it’s been going on for 30 years now, so it’s probably not going to change,” Schneider says.

All that said, she draws a distinction between sweepstakes and prediction markets. “It’s not a new thing for somebody to use that model as kind of an end run around the state regulation,” she says of the former, “the prediction markets are different”.

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Predication markets she can see an argument for. “I never really did understand why we couldn’t do like a Betfair exchange here, because I always thought it would be good. But it goes back to the Wire Act and everything being ring fenced by state,” she explains.

Schneider says she’s “stumped” by the apparent lack of appetite for legalized igaming in the US, with just seven states introducing regulatory regimes since the Professional and Amateur Sports Protection Act was repealed.

She wonders if that appetite will increase if sweepstakes and illegal operators can be shut down, leaving no alternative but a legalized offering at some stage, but that’s a tall order if channelization efforts in other regulated jurisdictions are anything to go by.

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In the meantime, her focus remains on building the influence of Defy The Odds and paving the way for igaming’s next generation of innovators.

Dig Deeper

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2025/07/08: SBOBET holding company fined £3.9 million for AML violations 2026/01/09: Wabanaki Nations win exclusive rights to operate igaming in Maine 2025/06/05: Thai government rules out igaming as part of the Entertainment Complex Bill 2026/01/28: Massachusetts anti-gambling survey claims 56% of residents oppose legalized igaming

The Backstory

Why this backdrop matters

Sue Schneider’s latest push to mentor startups through Defy The Odds comes as igaming’s operating climate fractures along regulatory, compliance and cultural lines. Markets are opening on one side and hardening on the other. That split is setting the terms for where innovation flows, how capital is deployed and which founders get a foothold. The recent run of stories across the sector helps explain why an industry veteran would build a launchpad now: startups need sharper guidance to navigate a patchwork of rules, investor caution and public sentiment while still moving fast enough to win.

Compliance cracks sharpen the need for expertise

The most forceful reminder that governance can make or break growth arrived in the Isle of Man. Regulators imposed a £3.9 million fine on Celton Manx, the holding company of Asia-facing SBOBET, for anti-money laundering and counter-terrorism financing failures, and the company forfeited its license in May. Investigators cited weak expertise among compliance leaders, gaps in customer verification and insufficient checks on network partners. Even after cooperation reduced the penalty from an initial £5.6 million, the case underscored how quickly an operator’s standing can unravel if internal controls trail the expectations of maturing regulators.

For young companies, the message is blunt: product vision is not enough. They must build compliance capabilities early, understand varying standards across jurisdictions and prove they can enforce policies down the chain. That is the sort of institutional know-how Schneider and her cofounders aim to transfer to founders who may be strong on product but new to the regulatory perimeter. It also explains why investors gravitate to launchpads that can stress-test programs for risk, data quality and escalation before first revenue arrives.

U.S. legalization advances in fits and starts

State dynamics remain decisive. Maine is set to become the nation’s eighth legal igaming market after Gov. Janet Mills allowed LD 1164 to become law, granting the state’s four Wabanaki Nations exclusive online casino rights. The model mirrors the tribes’ sportsbook arrangement. As we reported, the Wabanaki Nations now hold those rights, a result tribal leaders framed as both economic lifeline and sovereignty milestone. The structure narrows the field of potential B2B partners to four platforms, but it also creates clear counterparties for vendors that can help tribes stand up technology securely and at speed.

Contrast that with Massachusetts, where momentum is far from settled. An anti-gambling advocacy group released a poll claiming 56% of residents oppose legalized igaming, as lawmakers weigh House Bill 332 and Senate Bill 235. The survey pressed concerns about youth access, addiction and whether revenues justify social costs. While advocates and operators may dispute methodology, the findings illustrate the communications and guardrail commitments policymakers want to see before expanding beyond sports wagering. For startups, that means solutions that harden age checks, spot harmful play early and give regulators transparent dashboards are not add-ons — they are core differentiators in RFPs and legislative hearings.

This divergence — a tribal partnership path in Maine versus public skepticism in Massachusetts — shows why Schneider’s focus on opening doors for new entrants matters. Entrepreneurs must tailor go-to-market plans to a state’s political calculus and stakeholder map, not a national storyline. It is also a case study in where investors will greenlight pilots: states with defined routes to licensure and compact structures can attract earlier-stage deployment than those stuck in debate.

Asia’s land-first pivot reshapes digital bets

Beyond the United States, governments are drawing firm lines between land-based expansion and online play. Thailand confirmed igaming is not part of its Entertainment Complex Bill, which aims to legalize integrated resorts with multibillion-baht investment thresholds. The Finance Ministry’s briefing positioned casinos within destination-scale projects, with officials courting operators at a roundtable and, as noted by Inside Asian Gaming, sketching targets for higher visitor spending. While Bangkok left the door ajar for future online discussions, the present emphasis is clear: physical anchors first, digital later.

For innovators, that sequence resets timelines for online market entry in Southeast Asia and shifts near-term opportunities toward resort tech, on-premise payments, loyalty and experiential content that can plug into IR ecosystems. It also nudges igaming startups to look elsewhere for immediate scale, even as they track Thai policymaking for eventual convergence. Schneider’s long view — that markets cycle from rush to regulation to stabilization — is visible here. Founders who can survive the wait with B2B products that sell into land-based operators may be best positioned if or when online channels open.

Diversity and visibility as growth levers

Capital tends to find ideas and teams it can see. That is one reason industry platforms that spotlight underrepresented leaders are increasingly strategic, not just symbolic. CDC Gaming and Global Gaming Women opened nominations for the 2025 class of 10 Women Rising in Gaming, seeking candidates across digital and brick-and-mortar segments. Recognition programs create pipelines: they surface operators, technologists and advisors whom VCs, regulators and partners may not yet know, and they expand the networks Schneider’s launchpad relies on to match founders with capital and mentors.

The nomination window runs through July 25, with submissions accepted via a dedicated form. Honorees will be recognized at Global Gaming Expo in Las Vegas in October. For early-stage teams, these touchpoints are not just resume lines; they are entry ramps into deal flow, partnership talks and, often, the regulatory roundtables that shape access to markets.

The stakes for founders and funders

The through line across these developments is practical: igaming’s next phase will reward execution in complex environments. Enforcement actions like the Isle of Man case raise the compliance bar. State-by-state politics in the U.S. demand bespoke strategies, with tribal partnerships opening some doors as public opinion closes others. Asia’s near-term priority for integrated resorts delays pure-play online upside but creates adjacent arenas for tech. And sector initiatives that widen participation can speed discovery of the next cohort of operators and suppliers.

That is the context for Schneider’s decision to build a community that convenes investors, startups, regulators and subject matter experts. It is not only about sourcing ideas; it is about compressing the learning curve on policy, licensing and risk so founders can navigate volatility without losing velocity. In a year when some jurisdictions expand access and others retrench, that kind of translation layer — from concept to compliant company — is likely to determine who scales and who stalls.