As the iGaming market in the UK has grown exponentially since 2010, we’ve also seen associated money-making opportunities emerge in the sector.

For example, the most successful gambling affiliates can earn in excess of £20,000 per month when ranking well for competitive search volume keywords, simply by promoting a particular casino brand through their site.

However, given the recent proposals aimed at safeguarding players in the iGaming market and the wider impact of Brexit on the European gambling industry in the UK, the future for affiliates has become uncertain. But how will they be affected by any rule changes?

Exploring Current Affiliate Restrictions

During the House of Lords Select Committee meeting on the Social and Economic Impact of the Gambling Industry in February, delegates discussed a wide range of measures to help protect vulnerable and underage gamblers.

They also entertained the ambitious proposals by the All-Party Parliamentary Group (APPG) for Gambling Related Harm, which included measures such as a £2 online slots betting cap and a comprehensive review of the licensing criteria imposed on operators.

Another key topic for discussion was the role of affiliates, and more specifically how operators feel about regulating these entities and the way in which they advertise to their customers.

Currently, there is a clear rule which makes operators liable for the actions of their affiliate partners, with this having been in place since the last review of the market in 2018.

This rule created a sense of accountability amongst operators and made them directly responsible for the marketing activity (and breaches) of their affiliates, resulting in a slew of financial sanctions for brands across the board.

This was also part of a wider drive to curb the publication of misleading information on affiliate sites, which could occasionally be utilized to target vulnerable or underage players.

Aside from misleading advertising, this body of rules and wider regulatory framework also covers specific database practice requirements, including the requirement to demonstrate explicit consent for any person who happens to be on an affiliate’s email marketing list.

By attempting to control sponsored iGaming messaging in this way, both the UK regulator and the government caused a considerable splash in the affiliate market.

For example, Sky Bet closed their affiliate program completely after the new rules were imposed, while a host of other market-leading operators listed on mybettingsite.uk ceased to partner with their most inefficient and untrustworthy affiliates.

This also contributed to the significant spike in mergers and acquisitions in the iGaming market during 2018/19, so it should come as no surprise that stakeholders are watchful in the event that new affiliate laws are passed.

So, What Does the Future Hold for iGaming Affiliates?

The main worry here is that the previous measures clearly have not resulted in the level of control and conformity that regulators would like, which is why alternative (and potentially stricter) measures may be under consideration.

In fact, the most logical and likely move would be to see the government (in conjunction with the UK Gambling Commission) attempt to regulate affiliates and their activity directly.

In theory, this could broadly follow the US model, where sports betting affiliates are required to register or license their operations in full before deals can be struck to promote online sportsbooks and iGaming brands.

This would not only potentially result in the formation of a new and standalone regulatory body, but costs may also be introduced to create a barrier to entry for new affiliates and make the practice less profitable for rogue operators.

Just as in 2018/19, any new rule changes could also trigger another wave of mergers and acquisitions.

In this instance, such strategic moves could well help smaller operators to absorb increased operational costs, while enabling larger corporations to strengthen their market share.

On a fundamental level, however, any new rule changes would require operators (and, to a lesser extent, affiliates) to boost their legal representation, in order to help minimize regulatory costs and pay for any external legal support that may be required.

These challenges will be compounded by Brexit, particularly for UK operators who may also be struggling with the increased RGD levy and other regulatory restrictions.

So, all stakeholders will be waiting with bated breath in the coming months, to see which of the new iGaming rules and regulations are likely to impact on the lucrative practice of affiliate marketing.