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Affiliate Success

Boots on the ground: What it’s like being an affiliate in the US sports betting market

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Boots on the ground: What it’s like being an affiliate in the US sports betting market
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Mike Murphy, founder of BettingUSA.com, talks about the challenges and opportunities that await those getting in on the action in the US sports betting affiliate sector

The Supreme Court’s decision to strike down the Professional and Amateur Sports Protection Act (PASPA) in May 2018 has unleashed a sea change in the regulated US sports betting market.

What was once illegal and the realm of shadowy offshore sportsbooks has now come into the mainstream with legal in-person and online sportsbooks slowly but surely funneling gamblers back onto regulated platforms headquartered in the United States.

Change can be uncomfortable, but it also provides opportunity. Many affiliates made a lot of money and got comfortable during the unregulated offshore days, but those days are dwindling and a new order is rising.

The question for sports betting affiliates is whether or not they will adapt to the changing environment and capitalize on the new opportunities before them. We suggest taking full advantage while the getting is good but acknowledge we will all face challenges moving forwards.

Let’s consider what we face and what we stand to gain.

Challenges Facing Affiliates in the Legal US Sports Betting Market

The greatest opportunities in life always come with challenges, and the newly-regulated sports betting market in the United States is no exception.

The good news is these challenges will sharpen and diversify your skills. Overcoming these challenges will make you a better, smarter and more well-rounded affiliate.

You will also find these challenges act as a sort of filter such that when you emerge on the other side, your competition will be reduced in number. The competitors who remain will be skilled affiliates like yourself, but there will be fewer of you competing for a piece of the action.

Higher Quality Competition

The regulated online gambling and sports betting market in the US has already attracted the attention of big players with deep pockets. The quality of websites that appear in search results is a night-and-day difference compared to just a few years ago when the only real opportunities to make money as a US-focused gambling affiliate were either questionably legal or outright illegal.

Legalization and regulation have resulted in major media companies finally entering the US market now that they can do so in a fully legal and transparent manner. These companies have big budgets, hire the best writers and churn out high quality websites in bulk.

Competing against these types of affiliates is challenging, and there are no indications things are going to get any easier. If you’re an independent affiliate with a website, you have your work cut out for you. The bigger companies can outspend you and likely have better connections.

That doesn’t mean there is no room left for independent affiliates like some of the doomsayers have taken to claiming of late. It just means you’ll need to be agile, pick your target markets carefully and cultivate a real relationship with your viewers.

New Licensing and Compliance Hurdles

One of the most challenging and frustrating hurdles we see in the US market today is the introduction of regulations that impact affiliates. States such as New Jersey and Pennsylvania require all affiliates to acquire a license in order to make money promoting licensed sites to players in those states.

The magnitude of this challenge remains to be seen as additional states pass legalization laws. New Jersey’s affiliate licensing process really isn’t all that difficult. Getting licensed in Pennsylvania has proven to be fairly complicated. Meanwhile, we have seen no indications affiliates need to be licensed in West Virginia.

The types of laws passed in the future will determine the true startup costs associated with licensing. Our best advice to smaller affiliates here is to target states in which the licensing hurdles are minimal or nonexistent and build out from there.

Additional compliance hurdles are likely to materialize at some point as well. We can look to recent developments in the UK online sports betting industry for a preview of what may come in the future.

Advertisers in the UK are subject to an increasingly complicated set of rules regarding how to promote gambling responsibly, for example. The US has not gotten to this point yet, but it is worth keeping in mind additional regulatory hurdles remain a distinct possibility.

A Fractured Market

Online sports betting and gambling are regulated at the state level, which means the rules vary from state to state. You may need an affiliate license in one state but not another. A particular betting site may be available in one state, but not in the next one over.

This means you’ll need to take a state-by-state approach to your affiliate business by promoting particular sites to visitors from particular states. Some operators have opened shop in multiple states, but you’ll need to stay on top of which sportsbooks are available where so you can direct your visitors to the proper websites.

The upside to this challenge is it too provides opportunity. As legal sports betting spreads across the US, people are going to have many questions regarding the law, where they can bet online legally, where to find licensed mobile betting apps and much more. Affiliates are well-suited to educate consumers and earn some money at the same time.

Opportunities

Now that we have the biggest challenges out of the way, we can move on to the fun stuff: the opportunities that await affiliates who are able to deal with the aforementioned obstacles. The United States presents some very big opportunities for those intrepid affiliates who dare tackle this market.

There is A Lot of Money to be Made

The US online sports betting market has enormous potential for simple reasons. The US has a large population, it has a pro-sports culture and the people have high levels of disposable income.

We also have a strong pro-gambling culture with hundreds of casinos spread across the US and widespread familiarity with sports betting even if it was limited (officially anyways) to Nevada for several decades.

Consider this: The American Gaming Association (AGA) has estimated that one quarter of the US population participated in a sports pool in 2017. The AGA has also estimated Americans already wager upwards of $150 billion per year on sports through illegal channels. That is a lot of pent up demand.

This isn’t just us talking up the industry – major industry players have been staking their claims in anticipation of widespread legalization. Caesars Entertainment, FOX Sports and even Buffalo Wild Wings have all made moves to position themselves for a piece of the pie.

Some affiliates have already made a fortune even though the industry is just now gearing up. We have seen multiple eight-figure sales of sports-oriented affiliate websites in recent times for monthly multiples that would have been unthinkable during the turbulent, uncertain offshore sports betting days.

Case in point: The Better Collective Group recently purchased 60% of the RotoGrinders network for $21 million up front, plus a plan to purchase the remaining 40% “at a valuation based upon an EBITDA multiple between 5x and 10x.”

We also saw Catena Media purchase BonusSeeker last March for $6.5 million with a potential additional payout of $9.5 million based on performance after two years. Mind you, this was before the Supreme Court decision. BonusSeeker was restricted to legal online casinos in New Jersey at the time, and still it sold for that much.

The financial potential for affiliates is almost overwhelming to consider, and yet the industry is still just getting started. Many more states have yet to pass legislation to legalize online sports betting and gambling.

Industry is Ripe for Innovation and New Ideas

This is an exciting time to be an affiliate with operators and traditional media companies alike exploring the possibilities of legal sports betting. We’ve seen the likes of PointsBet hit the market with innovative new ways to bet on games while other operators have greatly expanded their in-play wagering capabilities.

The United States, home to Silicon Valley, has a strong culture of innovation. Even though the European markets have had a lengthy head start when it comes to legal sports betting, nobody can innovate like motivated US companies.

Not only does this make it more exciting and interesting to be an affiliate, but it gives affiliates even more opportunities to show value by answering questions and sharing interesting updates with viewers.

It is Still Early in the Game

The US online gambling industry is still in its infancy. Yes, some of the bigger affiliate networks have already paid millions for well-established websites, but we haven’t even come close to reaching peak saturation.

Consider the acquisitions discussed above: BonusSeeker being purchased for $6.5 million up front with a final sale price of up to $9.5 million after two years; 60% of the RotoGrinders network being purchased for $21 million up front with a very real chance of the final deal being realized for $50 million or more a few years from now.

Consider that these purchases happened when the majority of states still haven’t legalized online sports betting or gambling. Major affiliate companies are not paying that much money for digital assets just for fun. They see the market potential. They know the US market is just barely getting started.

Now, imagine the types of buyouts that will be possible after 20, 30 or 40 states have legalized online sports betting – or if Congress steps in and passes nationwide legislation.
We see the occasional discussion among smaller affiliates bemoaning the “corporatization” of the affiliate business.

Some will tell you it’s too late to get in the game now with the likes of Catena Media and Better Collective out there spending millions on marketing, acquisitions and staff.

It’s true the level of competition has increased and affiliates do have to jump through new hoops with licensing requirements in some states, but the market is still just barely getting started. Those challenges can be overcome, and the rewards will be very much worth the trouble.

There are plenty of opportunities even for the lonely one-man operation. Those who work hard and provide informative or entertaining content have a world of opportunity open to them with the US market just now getting off the ground.

Affiliate Announcements

QMRA Launches Italian Quality Mark for Affiliates

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QMRA Launches in Greece

 

QMRA is a Compliance Quality Mark for iGaming Affiliates, launched by XY Legal Solutions B.V. (XYLS). XYLS launched a Dutch Quality Mark, KVA (https://kva.nl/), in September 2021, now working with numerous operators (LeoVegas, ComeOn, 711, TonyBet, Hard Rock Casino) and 90+ members.

In February 2024, QMRA was launched. Affiliates from the following markets were able to apply for the Quality Mark: Belgium, Spain, Denmark, Germany, Norway, Sweden, USA Michigan, The UK, Ontario and Estonia. As of today, Italian affiliates will be able to join QMRA as well. Applicants will receive:

    • A Compliance Report, containing compliance feedback if needed, in certain cases usable for obtaining a Meta Ads License;
    • A specific Online Certificate about the member website, explaining its compliance (https://qmra.eu/members/affiliates/);
    • Possibility to consult the QMRA team on compliance related questions.

Several joined since launch, representing all available markets so far. Among joining companies were Leadstar, ADM Group, BetFans, Game Lounge and Gentoo. Game Lounge and Gentoo decided to make QMRA official company policy. Sitebee, a Gentoo launched Compliance Tool, announced an official partnership with QMRA on legal support last week.

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Affiliate Success

Casino Guru secures SBC Awards shortlist for Casino Affiliate of the Year

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Casino Guru, the world’s largest and most up-to-date database of online casinos, has landed on the shortlist for SBC Awards 2024 in the Casino Affiliate of the Year category.

Casino Guru, which has processed more than 6,930 casinos, and prides itself on the world’s largest forum community built around informing players, enters a competitive field of 12 contestants all vying for the distinction.

SBC Awards 2024 is due to take place on September 26 at the MEO Arena on the final day of the SBC Summit, celebrating industry-wide achievements. Casino Guru is proud to be shortlisted for this important accolade. The company has worked tirelessly to establish itself at the top of the industry.

In embracing the affiliate business model, Casino Guru has created a groundbreaking and industry-shifting paradigm through the introduction of the Safety Index, a complex algorithm powered by big data, consumer feedback, and a meticulously in-house analyst team that has allowed Casino Guru to not only be the go-to repository for online casinos but also provide players with a credible source of information when it comes to the inherent trustworthiness of each casino brand listed in the constantly-growing database.

In welcoming the nomination, Šimon Vincze, Head of Sustainable & Safer Gambling, said: “I am thrilled to see Casino Guru shortlisted for the category again this year! Our competitors for the winner are recognised companies with a considerable impact on the online gambling affiliate business. The criteria for the winner go beyond our unique approach to affiliation and consider growth in multiple areas. I am convinced that we have much to offer in this sense as well, and I am looking forward to the judge’s conclusion.”

The Safety Index in particular has been a dynamic and living ecosystem that has been evolving on a weekly and monthly basis, registering movements in casinos’ overall ranking based on a comprehensive set of factors, such as complaint resolution, terms and conditions, licensing issues and more.

Having those efforts recognized by the SBC Summit Awards is a huge milestone for the company, which has operated with an unwavering commitment to bringing consumers the best possible choices from a database that easily constitutes the world’s largest.

Casino Guru is a trailblazer in building an affiliate business that is fully consumer-focused and consumer-facing, by offering an uncompromising, verifiable and transparent accreditation process that ultimately benefits consumers and helps match their preferences with the best casino brand.

Casino Guru is looking forward to September 26 and is excited about the opportunity to demonstrate to the panel of judges that the company is committed to raising standards for the way consumers engage with the industry in a manner that protects consumers and distinguishes the best operators and brands on the market, helping drive a sustainable and healthy environment for all.

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Affiliate Success

ReferOn Nominated for “Acquisition and Retention Partner” at SBC Awards 2024

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ReferOn Nominated for “Acquisition and Retention Partner” at SBC Awards 2024

 

ReferOn, a state-of-the-art affiliate management platform, announces its nomination in the Acquisition & Retention Partner category at the prestigious SBC Awards 2024.

The inclusion in this category highlights ReferOn’s efforts to create and develop a targeted product for the needs of the iGaming industry, recognizing the team’s innovative approach and notable results in the field of affiliate marketing.

ReferOn’s nomination as an Acquisition & Retention Partner confirms that the affiliate management platform has proven its effectiveness and understanding of customer needs, as noted by the judging committee. Designed with years of iGaming experience its team, ReferOn caters to the specific needs of affiliates and managers, offering a flexible and scalable solution for managing large networks of companies in one comprehensive hub.

Alexia Gauci, B2B Sales Manager of ReferOn, commented on the nomination: “Being mentioned in the ‘Acquisition and Retention Partner’ category at the SBC Awards 2024 means a lot for our team. We are providing innovative solutions that meet the evolving needs of iGaming professionals. We’re continuously enhancing the platform’s capabilities so our clients can solve the issues they are facing & achieve business goals.”

ReferOn brings reporting capabilities, robust back-office functions, and unique reward mechanics, all designed to simplify administration and enhance data control. With features like Sub-Affiliation and Independent Deal Calculations (IDC), ReferOn offers transparency and flexibility, helping users with tracking key metrics easily for quick data-driven decisions.

In addition to its technical improvements, ReferOn started educational initiatives & received good feedback from the audience. The team already conducted two free seminars, “ReferOn Insights” for Operators and Affiliates to provide valuable knowledge and strategies for maximizing affiliate marketing success.

The ReferOn team will be exhibiting at SBC Summit 2024 in Lisbon and will showcase its latest developments and offerings at booth F430 from 24-26 September. Visitors will be able to ask ReferOn representatives questions and learn more about the platform’s advanced features and innovations.

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