INSIGHT
ERICA
ANDERSON
Erica oversees the
marketing department
at Paysafe Group’s Income
Access, the marketing technology
and services company founded in
2002. The company’s platform is
used by multiple US gaming brands,
and Income Access manages the
affiliate programs of some of the
major online casinos and
state ilotteries.
affiliates are seen to be “independent
from the brands we advertise and as an
informational resource.”
Small agrees with Daly, arguing
that affiliates’ objectiveness has
allowed them to support New Jersey
consumers’ vetting of brands through
product reviews. “There’s also an
education gap in the US, as people
everywhere are confused about
gambling laws – affiliates can help
bridge that gap,” he says.
Evolution versus revolution
Affiliates are increasingly proving their
‘stickiness’ as a marketing channel.
PASPA’s repeal and Pennsylvania’s
imminent launch of an online casino
and poker market suggest that
contextual factors are also shifting.
Affiliates like Becky Kingman-Gros
are strongly focused on igaming in
Pennsylvania, given the parallels with
New Jersey. Noting its population
of 12.8 million, she says, “This is a
fantastic opportunity, provided the
revenue share options to licensed
affiliates will be compatible to
what New Jersey is offering.” The
Pennsylvania Gaming Control Board
has yet to announce its stance on
affiliates, though it seems likely that
the regulator would emulate the
DGE’s approach.
Kingman-Gros is even optimistic
that the Keystone State’s launch could
serve as a catalyst for broader igaming
regulation. “Pennsylvania will likely
push some other states over the edge,
providing an even bigger opportunity
for affiliates,” she says.
Of course, PASPA’s repeal has
arguably been a bigger catalyst for
affiliate marketing, with New Jersey
already offering online sports betting,
and Delaware and West Virginia
planning to expand their retail market
to include online sportsbook in early
2019. Pennsylvania is also expected to
launch its cross-channel sports betting
market around that time.
In addition, Daly is expecting
perhaps two to three new states to
regulate sports betting in 2019 for
launch the following year. “It will still
be very healthy growth but more of an
evolution than a revolution,” he says.
Small is equally measured,
cautioning that only states with online
sports betting markets are relevant
from an affiliate perspective. However,
he adds, “For states like Pennsylvania,
New Jersey and West Virginia, online
is going to be a huge profit centre.” He
also sees the potential for “big states”
such as New York and Michigan “to
get on board in the near future”.
The cautious optimism of established
affiliate businesses such as DGS and
Catena Media is likely to see them
joined by many new affiliates in 2019.
Indeed, 22% of global affiliates polled
in Income Access’ Q3 2018 survey plan
to promote US sportsbooks next year.
Small feels the term ‘affiliate
gold rush’ is overblown but does
acknowledge that the space will
expand significantly. “There will be
more affiliates because there is more
money to be made,” he says. “The
best affiliates will keep getting more
professional and sophisticated, with
larger and more expensive operations.”
Even with the addition of new
affiliates, verticals and markets, Daly
feels that the channel will retain its
focus on consumer education even as
it grows in the short term. “‘Evolve’
is the right word for the post-PASPA
US market as that means to develop
gradually,” he says. Affiliate marketing
may stop short of reaching a tipping
point next year, then, but it is
evolving into a new American phase
where a revolution appears inevitable,
sooner or later.
iGB Affiliate Issue 72 DEC 2018 / JAN 2019
41