INSIGHT
EYES ON THE PRIZE
Igaming affiliate marketing has changed enormously over the past 20 years . But now the recent tightening of regulatory controls in the UK , coupled with the opening up of new markets in a post-PASPA US , is set to transform things further . And , says Erica Anderson , for those affiliates courageous enough to alter their marketing approach , the opportunities are huge
THE OLD LATIN PROVERB “ fortune favours the bold ” should be words for affiliates to live by in the brave new world of igaming affiliate marketing . The US Supreme Court ’ s recent repeal of the federal Professional and Amateur Sports Protection Act ( PASPA ) has concluded a momentous 12 months that have featured the launch of the first American state lottery affiliate program and the arrival of new Pennsylvanian iGaming and iLottery regulation , as well as the UK market ’ s focus on regulatory compliance .
These developments have changed the nature of affiliate marketing in the online gambling space . From developing more transparent partnerships with UK operators to globalising their strategies to benefit from the diverse opportunities offered by the US market , affiliates bold enough to move with the times will own the future .
TRANSPARENCY IN THE UK It has been a year since the UK Advertising Standards Authority ( ASA )’ s landmark July 2017 update , which emphasised operators ’ responsibility for their affiliates ’ marketing practices . The ASA subsequently censured various brands for the underhand tactics of a minority of their partners . While very few operators followed Sky Bet ’ s lead and closed their affiliate programmes , the majority made responsible and transparent affiliate marketing a core and ongoing focus .
When operators risk incurring significant fines from one ‘ rogue ’ affiliate , it ’ s understandable that they should respond by introducing compliance teams and tightening their affiliate programmes ’ terms and conditions . Their overall approach now focuses on transparency : who exactly is the affiliate we ’ re partnering with , and how exactly will they promote our brand ( site URLs , social media handles , media buy networks )?
In 2018 , affiliates have to be fully transparent about their identities and businesses , proving their reputability and solvency . It is becoming standard for affiliates to provide UK-facing sportsbooks and casinos with national IDs that have been certified by a notary as well as certificates of incorporation and good standing before being approved to join a programme .
Once operators have vetted affiliates ’ backgrounds , their programme ’ s T & Cs will request they are fully transparent about how they promote the brand , with the operator commonly approving all new affiliate approaches . It ’ s vital that affiliates are openly declaring their promotional channels . Operators are frequently using third-party software like Rightlander to verify where exactly their banners and links are appearing . Inaccurate disclosure can see affiliates suspended from a programme .
Of course , this signals a sea change in igaming affiliate marketing as it nears its second decade . Gone are the days when affiliates could register for a programme with pseudonymous email and Skype accounts . The luxury of anonymity is no longer possible for affiliates – unless , that is , they want to sacrifice the luxury of revenue . Of course , there ’ s a danger that the new registration requirements will deter affiliates from registering for a programme .
In fact , affiliates should consider the new world of compliance as a window of opportunity . In relatively saturated markets like the UK , honest and transparent affiliates are being given a competitive advantage in the battle for traffic . It ’ s also likely that operators and regulators in continental Europe and elsewhere will increasingly model their approach to affiliate marketing on the channel ’ s British heartland .
FROM PENNSYLVANIAN iGAMING TO iLOTTERY Of course , the UK is by no means the first igaming market to place significant control on affiliates . In 2013 , when New Jersey regulated its online casino and poker market , the state ’ s Division of Gaming Enforcement ( DGE ) opened its arms to affiliates – so long as they applied for a licence . Affiliates promoting brands on a CPA or flat-fee basis applied for free vendor registration , while those working with brands on revenue share are required to obtain an Ancillary CSIE License at a cost of $ 2,000 .
Those affiliates savvy enough to think beyond these minor bureaucratic hurdles placed themselves in a strong position as the market grew . And grow it certainly has , with the DGE reporting record monthly revenue of $ 25.6 million in March . Forward-thinking affiliates who have promoted New Jersey brands are now well placed to profit from Pennsylvania ’ s regulation of igaming last October .
ERICA ANDERSON is marketing director , Paysafe ’ s Income Access . Her role focuses on developing the marketing strategy for the Income Access brand . Holding a decade ’ s industry experience , she also oversees the company ’ s in-house affiliate management team and its suite of digital marketing services . Income Access manages close to 20 affiliate programmes , including Caesars Interactive Entertainment .
42 iGB Affiliate Issue 69 JUN / JUL 2018