INSIGHT
Another bourgeoning , and slightly more established vertical , is social gaming . The social casino space in the US is a $ 4.4 billion market , with products ranging from table games , slots and poker . As of this past month , nearly 25 % of the topgrossing iOS store apps are social casinos ,
including DoubleDown , Big Fish Casino , and Playtika . These powerhouses stand alongside other gaming products such as Pokémon GO and EA ’ s Star Wars : Galaxy of Heroes . Traditional casinos have recently begun launching their own branded social casino products , meaning hundreds of products are now available for affiliates to promote .
Opportunities to market igaming So what does this really mean for affiliates evaluating whether to invest in the US market ? As Seth Young , Director of Online Gaming at Foxwoods Resort Casino , put it : “ If you have [ US ] traffic , then the US market is worth looking at .”
Specifically for social casino , Young sees the affiliate market as relatively immature , which means low competition for affiliates . “ There aren ’ t too many companies driving casino traffic ,” said Young . “ At Foxwoods , we ’ re seeing higher ARPDAUs and revenue per player . It ’ s up and coming brands like this that may be an interesting opportunity for affiliates .”
As for iLottery , the market is young and growing rapidly . Lisiecki of Michigan shared that only 2 % of the 18 + population in
Michigan is active online , which shows the immense potential audience that affiliates can help the brand to reach .
With DFS , the brands are seeking to educate 57 million season-long fantasy users of the possibility to play short-term , daily and weekly games . According to the FSTA ,
“ According to Michigan ’ s Digital Products Director Jason Lisiecki , only 2 % of the 18 + population in Michigan is active online , showing the immense potential audience that affiliates can help brands to reach ”
only 7.8 million have registered with a DFS brand , and of those , 67 % of these users have yet to monetize . For sports-loving affiliates , this is a niche with plentiful possibilities .
Most significantly , many of the verticals face challenges when it comes to marketing on platforms such as Facebook and Google . This challenge represents a valuable opening for affiliates who can help these brands to target niche audiences in a costeffective way .
Challenges to overcome Despite the compelling opportunities that exist in US iGaming , there remain challenges for both brands and affiliates to address . Some challenges can be seen across all verticals and others are uniquely applicable to specific products or jurisdictions .
For example , a shared challenge for igaming , iLottery , horse racing and DFS is the need to geo-target prospective players on a state-by-state basis . As each state has its own regulatory approach to igaming , brands and affiliates must respect the boundaries and restrictions put in place .
With social casinos , the challenge is in the volumes required to stay competitive with the big brands , and this can act as a barrier for affiliates to enter the market . That said , smaller brands seeking to invest more in effectively monetizing a smaller player base may be a more attractive place to start for affiliates looking to earn on a traditional cost-per-acquisition or revenue share basis .
Registration and licensing requirements are the most obvious barrier for affiliates wanting to enter the US market . At the very minimum , for regulated real-money iGaming , affiliates are required to register with each state government , and where they want to earn on a revenue share basis , may have to complete an extensive licensing process . In most instances , it was argued by the panel , this may not be such a bad thing . According to Young of Foxwoods , “ The fact that it ’ s difficult to get into the affiliate space in the US can actually be a good thing . This means that for affiliates that are serious about getting into the space , there is less competition and more room for growth .”
Whether the barriers have eased as the market continues to evolve , or the opportunities are becoming more attractive , there is no doubt that both brands and affiliates will mutually benefit from partnering to grow iGaming in the US .
As Senior Manager , Marketing Services , at Paysafe ’ s Income Access , ALANA LEVINE focuses on developing partnerships in the igaming and land-based casino sectors in the US and globally . She oversees the creation of turnkey digital marketing solutions for Income Access ’ global partners . Alana holds a bachelor ’ s degree in economics and a post-graduate degree in finance .
iGB Affi liate Issue 62 APR / MAY 2017 57