Affiliate Success
Boots on the ground: What it’s like being an affiliate in the US sports betting market
![Boots on the ground: What it’s like being an affiliate in the US sports betting market](https://gamblingaffiliatevoice.com/wp-content/uploads/US-sports-betting-market.jpg)
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 Success
Game Lounge Swedish Website (SveaCasino.Se) now QMRA Compliant
![Game Lounge Swedish Website (SveaCasino.Se) now QMRA Compliant](https://gamblingaffiliatevoice.com/wp-content/uploads/QMRA-1.png)
QMRA is a Quality Mark for iGaming affiliates, launched in February 2024. QMRA is available for the following jurisdictions: Belgium, Spain, Denmark, Germany, Norway, Sweden, USA Michigan, UK, Poland, Estonia, Ontario
QMRA is a follow up from successful Dutch Quality Mark KVA, which currently has most affiliates as members and works with several operators (like LeoVegas, TonyBet, HardRockCasino, 711 and Tombola).
QMRA now has various prominent members, like: Gaming Innovation Group (Gentoo), Applied Digital Media Group, Leadstar Media (for Germany) and Game Lounge as well.
Game Lounge joined QMRA with GuideCasino.Be before, and has now joined QMRA with various markets. For Sweden, the first website has been found compliant: SveaCasino.Se
Having the Quality Mark will instill trust in Swedish consumers, authorities and operators.
SveaCasino.Se is a well known Swedish website, with estimated traffic (SEMRUSH) of about 100.000 per month. SveaCasino.Se will be carrying the QMRA mark from now on. This means that the website has been checked against the QMRA Compliance Code:
- Channelling objectives
- The affiliate shall not advertise or promote the offer of unlicensed operators.
- The affiliate shall not make use of brand imagery, call-to-actions or make other references to the website and offer of unlicensed operators.
- Responsible advertising
- The affiliate shall never aim their advertising activities at persons that have not reached the age of 18.
- The affiliate shall add an 18+ characteristic to every webpage of their website and to any marketing activities on social media. The characteristic shall be clearly identifiable and visible to the consumer.
- The affiliate shall be mindful of the design of their marketing activities, as to not directly or indirectly target or exploit minors.
- The affiliate shall not make use of minors, directly or indirectly, in any marketing activity or imagery used in relation to marketing for games of chance.
- The affiliate shall not aversely influence excluded persons in a way that may convince or encourage them to start gambling, discourage them from further self-exclusion or target them in any marketing activity targeted at advertising games of chance.
- Careful and balanced design
- All marketing activities shall use no uncertain terms or mislead the consumer as to the nature, workings, prizes, risks and odds of the offer.
- The affiliate shall not use any uncertain terms or mislead the consumer as to their affiliation, role or activities. The affiliate shall clearly disclose their role as a marketeer.
- The affiliate shall not imply or state that the consumer may have a predominant influence on the outcome of a game of chance, or that the outcome may be influenced in any other way other than chance.
- The affiliate shall clearly state the type of game of chance is offered.
- The affiliate shall clearly state the license status of the operator.
- The affiliate shall not claim that it is quick or easy to win often or a large amount of money in any game of chance.
- The affiliate shall not encourage excessive or irresponsible gambling behavior.
- The affiliate shall not claim that the offer is free, the best, the cheapest or on sale in any way.
- Contributing to responsible gaming
- The affiliate shall share information regarding the risks associated with gambling for money.
- The affiliate shall share information and the means to get help with a (developing) gambling addiction. This information shall be:
- The national support helpline for gambling addiction;
- Parties that offer further assistance for a gambling addiction;
- Further information on gambling addiction;
- The possibility of self-exclusion and the Swedish Gambling Authority.
Affiliate Success
ReferOn Announces Second Seminar for Affiliates: ReferOn Insights
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Following the success of the first seminar for operators, ReferOn is delighted to announce its second seminar, “ReferOn Insights,” specifically designed for affiliates. This highly anticipated event will take place on Thursday, 11th July at 2 PM CET and promises to deliver invaluable knowledge and strategies for affiliates in the iGaming industry.
The seminar will be led by David Harris, B2B Affiliate Team Manager at ReferOn, who boasts over 8 years of experience in the iGaming market. He will be joined by Alexia Gauci, B2B Sales Manager at ReferOn, who will serve as the moderator for the session.
What to expect at the seminar:
- Data Discovery and Reporting: Gain insights into effective data analysis and reporting techniques to optimize affiliate performance.
- Tracking Methodology: Learn about advanced tracking methods and how to implement them for better accuracy and efficiency.
- Management tips: get advice on security, optimizing payment processing, processes and technical support team resources.
Additionally, following the main seminar program, there will be a Q&A session – participants will have the opportunity to speak directly with David Harris and Alexia Gauci and have their individual questions answered.
Join this opportunity to elevate your affiliate strategies and network with industry leaders. Spaces for the seminar are limited, so sign up promptly to secure your spot. The seminar will take place just a few days before the ReferOn team travels to one of the main iGaming industry events of the year iGB Live! You can be the first to find out online what ReferOn is preparing to present at booth 10-F38 at RAI Amsterdam from July 17-18.
Affiliate Success
Casino Guru wins Affiliate of the Year at AffPapa Awards for third consecutive time
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