The Regulated US iGaming Market needs Affiliates to thrive

A shade over 2 years ago, Nevada became the first US state to legalise online gambling (poker). Since that time, we have seen the first legal poker site rise and fall, New Jersey and Delaware follow the Silver State’s lead, with the former accepting play on online casino games, and we’ve participated in an unmelodious collection of regulatory debates in states such as California, Pennsylvania and Massachusetts lobbying for, and against, iGaming legislation.

We’ve seen billionaire-funded attempts to roll the market back to UIGEA, or worse.

But most of all, we haven’t seen a lot of players.

We have to look at New Jersey in particular here. Plain and simple, you’re going to see Nevada or Delaware struggle to reach critical mass offering poker alone, even with player pooling just around the corner. Online casino requires less need for a tight ecology, but volume is still essential to ensure margins kick in effectively and true month-on-month growth can occur.

Comparing NJ with the Nordics

New Jersey has a population of almost 9 million – a shade under that of Sweden and very nearly twice that of Norway. The Nordics offer arguably the greatest micro-melting pot of player knowledge, value and conversion rates of any region on the planet, with player value of an online casino customer 75% greater than that of the established UK market.

Whilst EU law has allowed unregulated brands to advertise in Sweden and Norway’s National Government Pension Fund has billions of Kroner invested in offshore gambling, operators are restricted in a far greater sense in the way they can market to potential customers than licensed operators in New Jersey… with one exception.

The humble affiliate.

The portal owner, the email marketer, the blogger, the Facebook tipster, the forum moderator, the PPC whizz, the new-fangled app builder all represent the glue that has put Sweden and Norway on the iGaming map, driving heavily-critiqued competition – and consequently product and market understanding of the Nordic casino player.

It’s a glue that is sorely lacking in New Jersey. Hell, the way the market looks, a webmaster won’t even get a sniff at it for an ounce of financial stimulation.

It isn’t too hard to become vendor registered as an affiliate in New Jersey. This would see you sit on a relatively strict CPA deal, and you may garner enough traffic to get something prepaid arranged, or some other form of media-based deal.

But to sit on a revenue share deal, that’s an altogether less appealing process – a process that includes full ownership character appraisal demanding things ranging from your finger prints to your toddler’s savings account details and the need to bring in legal advice to get things done “cheaply”. Not the end of the world for many affiliates, but here’s the:

Million Dollar Question

Why would bother with the rigmarole if you can earn more money by sending money to unregulated online casinos?

This is the very crux of the ongoing UIGEA fallout that WILL keep regulated operators behind the curve until it’s resolved. Since 2006, offshore operators have relied almost unilaterally upon affiliates to acquire players. Here you have a classic chicken and egg scenario that probably weighed heavily on the Pennsylvanian legislator’s pen as he drafted a recent bill that would see a would-be affiliate need to stump up – cue Dr Evil – ONE MILLION DOLLARS to obtain a license to promote regulated poker.

The tangible association of the affiliate with illegal online gambling is there. Offer a viable alternative, even an incentive, to break those ties and, just like that, the problem of the offshore casino or poker room disappears for good.

Devil’s Advocate

For the sake of those not as intrinsically involved in marketing channels and budget as I am, let me throw some facts your way.

Google

Facebook

Amazon

eBay

are all affiliates. They receive revenue in return for advertising and selling products or services. The inexactness of existing legislation, or its interpretation, in New Jersey that permits pre-paid advertising on sites like NJ.com or sports sponsorship deals bwin.party has with the Philadelphia 76ers and the New Jersey Devils displays a commercial naivety at best.

Newsflash: these commercial arrangements can only happen if they achieve a return on investment – ergo their very existence is dictated by player losses and any renewal or continuation effectively sees the recipients earning out of players’ pockets. I’d love to see Mark Zuckerberg send his fingerprints to the DGE if we’re doing things “properly”.

One might argue the ins and outs of what is proper when it comes to the regulation of advertising, in particular online. The bottom line is stringent regulation stifles growth – not just for affiliates either.

Affiliates create Market Knowledge

A late-2014 survey conducted in New Jersey indicated that under 10% of New Jerseyites even knew online gambling was legal, which ought to be bonkers considering the plethoric nature of billboard and television advertising the moment you land at Newark or cross the Hudson from Manhattan.

But for me, it’s not bonkers. The advertising, I’m sure very well thought out by brand managers and agencies, pushes brand and price heavily – repeating the successes of software partner brands in Europe. The issue is there is zero differentiation on product and consequently zero in terms of tangible comparison for the customer. What’s more, there is zero requirement for the operator to improve product or service delivery. It’s a turn off of the highest order, made infinitely worse when a customer does come to research ‘regulated online poker’ or ‘regulated online casino’ product in the Garden State, the independent resources ranking highest still push offshore, unregulated brands.

The DGE, via complaints from New Jersey’s handful of fully licensed affiliates, has formally forbidden any affiliate operating using a vendor license (our friends on the low rate CPA) from advertising regulated brands alongside the shady, higher earners.

What’s an affiliate to do?

The choice is simple. Earn more now by ditching the regulated brands and see what happens in the future. Affiliates, particularly those still operating as one man bands, tend to be from the “make hay whilst the sun shines” school of thought. Unlike the rest of the industry, they’re not the sort to sit back, play by the rules in the hope that a panacea is delivered out of the stresses and strains of state-by-state lobbying and bill redrafting. Regulators may well be irked by this approach, but they only have themselves to blame.

The solution is simple. Give affiliates FREE access to the market, let them do what they’re good at – namely independently appraising good and bad practice of online casino and poker operators for the greater good of the playing public, providing the substance to branding and becoming the glue the burgeoning regulated US iGaming industry needs to make targets stick.

Regulators – welcome affiliates with open arms and in one foul swoop you’ll expedite the demise of offshore gaming, build market knowledge and create the critical mass your licensees yearn for.

Unbelievable Sportsbook “Affiliate”

I have to say, this has been one hell of a Monday. This is undeniably the funniest Skype conversation I’ve ever had. To provide some context, this “man” has been bombarding the affiliate manager and customer services team at one of my clients for a couple of weeks, first of all claiming he wants to promote the client’s sportsbook on a forum in his market. In principle, fine, although it wasn’t his forum – it appears he is just a member there looking to spam the hell out of it I should imagine. He asked for a salary to do it, which is obviously out of the question. He was told this, but has come back again and again now asking for $50 to be credited to his player account for the time that has been wasted and to compensate him for having to turn down an “offer” from Party Poker. I decided to get involved and this is what happened. Prepare to be amazed.

Names and locations have been replaced with X and Y:
[16:05:50] Tom Galanis: hi Affiliate X
[16:05:52] Affiliate X: Hi Tom
[16:05:56] Tom Galanis: Affiliate Manager X has passed this over to me
[16:06:02] Affiliate X: You are this most important person
[16:06:06] Affiliate X: in Sportsbook X :)?
[16:06:15] Tom Galanis: I wouldn’t say that exactly
[16:06:37] Tom Galanis: but I’m happy to talk to you about the way we work
[16:06:58] Affiliate X: Yes , I am happy 🙂
[16:07:02] Tom Galanis: I gather that Affiliate Manager X has already told you that we are only looking to work with affiliates on a revenue share basis?
[16:07:36] Tom Galanis: the prospect of paying a forum member a salary to assist in promotion of Sportsbook X on the forum is simply out of the question
[16:07:51] Affiliate X: Hmm , I have advertiste on my forum from bookmakers who paid per month
[16:08:14] Affiliate X: without share basiis
[16:08:25] Tom Galanis: are you the owner of the site?
[16:08:37] Affiliate X: Contanst stake per month
[16:08:42] Affiliate X: few hundred dollars.
[16:08:51] Tom Galanis: how do you mean?
[16:08:58] Tom Galanis: you’re guaranteeing a number of bets?
[16:09:02] Tom Galanis: you’ve lost me
[16:09:05] Affiliate X: wait a moment
[16:09:33] Tom Galanis: do you run Site X?
[16:10:02] Affiliate X: My forum has the largest attendance in Country X, because of companies depending on what place on the page they want to have a banner set the rate each month.
[16:10:03] Affiliate X: yes .
[16:10:18] Affiliate X: I written with Affiliate Manager X that Sportsbook X can place banner on main page .
[16:10:29] Affiliate X: on my forum so it costs few hundred dolars per month .
[16:10:30] Tom Galanis: I’m confused, because you are not the nameholder of the affiliate account with Sportsbook X
[16:10:56] Tom Galanis: it is against our terms and conditions to discuss this account with anybody aside from the registered affiliate member
[16:11:03] Tom Galanis: for all I know, you could be anybody
[16:11:12] Affiliate X: I do not understand you know.
[16:11:27] Tom Galanis: really?
[16:11:36] Affiliate X: Yes
[16:11:39] Tom Galanis: I am going to Skype message the registered member
[16:11:43] Tom Galanis: and ask him
[16:11:53] Affiliate X: I am administrator of Site X
[16:12:33] Affiliate X: please does it me registered member? what do you mean?
[16:13:09] Affiliate X: because I do not understand this sentence.
[16:13:36] Tom Galanis: Site X registered as a Sportsbook X affiliate
[16:13:52] Tom Galanis: we can only discuss deals with the person registered under the account
[16:13:56] Tom Galanis: and that is not you
[16:14:17] Affiliate X: how registered in affiliate ?
[16:15:01] Affiliate X: and not discuss with me ? I have waited last 2 weeks for your final decision , I lost good offer advertise from this becauce I waited for Affiliate Manager X .
[16:15:17] Tom Galanis: but you don’t run the Site X?
[16:15:25] Tom Galanis: there is no offer as far as I can see it
[16:15:32] Affiliate X: Yes I run the Site X
[16:15:38] Tom Galanis: you are just a guy who uses the forum to place affiliate links, no?
[16:15:46] Tom Galanis: do you know Affiliate X?
[16:16:02] Tom Galanis: he is the person registered as the affiliate?
[16:16:21] Affiliate X: I pushed advertise as a banner on forum , NOT AFFILIATE LINKS
[16:16:38] Affiliate X: haha affiliate links joke
[16:16:45] Tom Galanis: they are the same thing
[16:16:50] Tom Galanis: a banner is an affiliate link
[16:17:15] Affiliate X: I will add baner on main place on forum aboce topic’s
[16:17:23] Affiliate X: it is the best plave for advertise
[16:17:35] Tom Galanis: ok, but do you understand my problem?
[16:17:44] Affiliate X: I do not understand so
[16:17:51] Tom Galanis: we have someone, who is not you, who has registered as the affiliate for Site X
[16:18:19] Tom Galanis: unless you send me proof that you are the site owner, I cannot enter in to negotiations with you
[16:18:26] Affiliate X: to this someone is rubber .
[16:18:37] Tom Galanis: please can you clarify what you mean?
[16:18:54] Affiliate X: On behalf of Site X all negotiations can only lead me as administrator
[16:19:08] Tom Galanis: ok, so do you know a person called Affiliate X?
[16:20:12] Affiliate X: No , nobody from my moderato’s on forum not called Affiliate X
[16:20:37] Affiliate X: So no one could on behalf of the forum to talk to you
[16:21:13] Tom Galanis: ok, so you don’t know that he is making money from Sportsbook X already, claiming it is through Site X and Site Y?
[16:22:09] Affiliate X: this forum is very smaller than my forum ( Site X )
[16:22:40] Tom Galanis: ok, in order to proceed with negotiations, I need you to send me proof that you own the forum Site X
[16:23:03] Tom Galanis: I do apologise if you do, but it would seem that someone is claiming to be the site owner already
[16:23:12] Tom Galanis: we cannot have 2 people running the same site
[16:23:53] Tom Galanis: it should be very easy to do – just go to your domain registrar and do a screenshot showing your account and the domain name
[16:24:11] Affiliate X: Okay no problem
[16:24:20] Tom Galanis: great, thanks
[16:25:01] Affiliate X: so I think you can add bonus to my account now 🙂 I think 50 USd will be good
[16:25:05] Affiliate X: real money , not funny
[16:25:17] Tom Galanis: seriously, are you not understanding me?
[16:25:33] Affiliate X: seriously , my english i so bad.
[16:25:37] Tom Galanis: why should I give you $50?
[16:25:52] Affiliate X: because I have waited long time for Affiliate Manager Xz final decision
[16:26:03] Affiliate X: and I lost good offer advertise ( from PartyPoker)
[16:26:10] Affiliate X: because I waited for Sportsbook X.
[16:26:15] Affiliate X: I lost good money.
[16:26:21] Tom Galanis: I waited 17 years to have sex, it doesn’t mean all the women in the world were going to go to bed with me when it finally happened.
[16:26:30] Tom Galanis: I’m sure the deal will still be there
[16:27:34] Affiliate X: So , please credit me bonus, I think you are serious person, because I dont know who are you ?
[16:27:37] Tom Galanis: If you like, I’ll speak to the affiliate manager at Partypoker and get them to help you
[16:27:44] Tom Galanis: what bonus?
[16:27:49] Affiliate X: 50 USD.
[16:27:58] Affiliate X: I can see only your nickname .
[16:28:36] Affiliate X: you want my screenshot domain register … so please credit me bonus , I will be know that you are serious person in Sportsbook X.
[16:28:52] Tom Galanis: my name is Tom Galanis. If you like I can speak to my friend at bet365, where I used to work. I’m sure he will be able to confirm your details as his banners are all over Site X
[16:29:29] Tom Galanis: I really don’t understand what game you are trying to play
[16:29:58] Tom Galanis: you must be mad to think that just because you harass members of my staff that you will get a $50 bonus
[16:29:58] Affiliate X: hohoho
[16:30:13] Tom Galanis: I may have a belly like santa, but I lack the beard
[16:30:40] Tom Galanis: I suggest you move on to your next victim – you will not be getting any bonus at Sportsbook X
[16:31:16] Affiliate X: What is your friend in bet365 ? I Just know a few person from this company .
[16:31:24] Tom Galanis: I used to work there
[16:31:28] Affiliate X: polish and english .
[16:31:41] Tom Galanis: feel free to tell them all about me
[16:32:23] Affiliate X: ok fuck you
[16:32:44] Tom Galanis: it’s been a pleasure talking to you too Affiliate X
[16:32:47] Tom Galanis: have a nice day
[16:33:13] Affiliate X: buahahaha
[16:33:30] Affiliate X: Sportsbook X — Sportbook X’s Location’s rubber’s
[16:33:41] Tom Galanis: I would love to know what a rubber is
[16:34:00] Affiliate X: Sportsbook X
[16:34:22] Affiliate X: Sportsbook X does not have good opinion in Country X .
[16:34:24] Affiliate X: and Language X users’s
[16:34:51] Tom Galanis: you didn’t tell me you controlled the entire Language X market?
[16:35:19] Affiliate X: yes I control
[16:35:27] Affiliate X: you have bad note on SBR
[16:35:37] Tom Galanis: that’s an American site
[16:35:49] Affiliate X: yes but , the best .
[16:36:10] Affiliate X: users waiting 8 days from answer from Sportsbook X Support on email
[16:36:12] Affiliate X: LOOOOOOOL
[16:37:40] Tom Galanis: that probably has a lot to do with a certain someone phoning in every 5 minutes believing they warrant a bonus
[16:37:46] Tom Galanis: http://www.sportsbookreview.com/blacklist/
[16:37:51] Tom Galanis: I don’t see Sportsbook X here
[16:38:35] Tom Galanis: can you send me the link?
[16:38:46] Affiliate X: please look on my forum Site X
[16:38:49] Affiliate X: Topic Sportsbook X
[16:38:55] Affiliate X: lot of negative opinion’s
[16:38:57] Tom Galanis: can you send me the link?
[16:39:02] Affiliate X: yes
[16:40:01] Affiliate X: http://www.Site X/forum/ubbthreads.php?ubb=showflat&Number=4734429&page=3
[16:40:05] Affiliate X: 3 longs pages
[16:40:09] Affiliate X: negative opnion’s
[16:41:51] Tom Galanis: I have to say, it doesn’t seem too bad to me
[16:43:05] Affiliate X: you are not understand Language X
[16:43:07] Affiliate X: hehe
[16:43:16] Tom Galanis: I have translated it
[16:43:23] Affiliate X: it is not bad ?
[16:43:25] Affiliate X: Come On
[16:43:28] Affiliate X: you are funny
[16:43:47] Tom Galanis: from what I can see most people are just discussing whether they want to take the bonus or not
[16:43:53] Tom Galanis: an $8 bonus, not $50
[16:44:23] Affiliate X: please push all pages
[16:44:50] Affiliate X: These people do not have good opinion about Sportsbook X
[16:45:03] Affiliate X: They write ” **mence”
[16:45:08] Tom Galanis: it seems that most of them are racist to me
[16:45:23] Affiliate X: yes
[16:45:37] Affiliate X: “send personal ID to Nationality of Person running Sportsbook X”
[16:45:57] Tom Galanis: so let me get this straight
[16:46:09] Tom Galanis: you want me to pay you money to promote Sportsbook X on ‘your’ website
[16:46:24] Tom Galanis: but it seems you think very little of Country X
[16:46:36] Tom Galanis: why are you interested in working with Sportsbook X if this is what you think?
[16:47:17] Affiliate X: I dont understand your sentence
[16:47:21] Affiliate X: yes I can work in Sportsbook X.
[16:47:54] Affiliate X: I would like to be official representantive on global forum’s
[16:48:18] Affiliate X: I worked for Tobet few month.
[16:48:41] Tom Galanis: Let me be clear, we do not want you to represent Sportsbook X
[16:48:53] Affiliate X: I have have the necessary experience
[16:49:39] Tom Galanis: that may be the case, but we will not be proceeding with working with you
[16:49:49] Tom Galanis: best of luck in your future endeavours
[16:50:24] Affiliate X: okay , so for this ” best lucky” credit me bonus to my Sportsbook X account
[16:50:47] Tom Galanis: no
[16:50:59] Affiliate X: yes

I’m not going to publicly name this guy, but if any affiliate managers would like to know more, I’d be happy to tell them. Simply incredible.

More Spam fun and games

Hi Affiliate Manager X,

Thanks for another email promoting your affiliate program. I actually replied to your last one a couple of weeks ago, but didn’t hear anything back. I am starting to wonder whether you are actually a robot programmed to send the same email numerous times without the programmed functionality to reply.

I can reply in binary code if that helps?

Thanks,

Tom

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The Futility of an Affiliate Manager’s existence

I’ve just had a Skype messenger conversation with an affiliate manager. He sold me the affiliate program pretty well and in fairness, without analysing every term and condition, it all seemed to be pretty nicely done as an offering. The notable downsides are that the software is Rival (clearly in a bit of a mess right now) and moreover, the casino really isn’t up to scratch. I mean, the screenshot from the bottom right corner of this casino’s homepage below goes some way to illustrate why I couldn’t possibly happily refer an affiliate to this guy.

Poor Affiliate Manager

I feel for good casino affiliate managers who just don’t have the right product to sell, and don’t have people in other departments pulling their weight making sure what they do is spot on too. In my opinion there are now far fewer respectable, top quality online gaming destinations than there are good, upstanding affiliate managers. How in God’s name is this poor guy going to get decent traffic to this casino and make ends meet? Surely whoever decided to launch this royalclubcasinoclubgamesvegascluborsomethinglikethat.com really should have made sure that the latest winners and progressive jackpot feeds were working and that his website manager knew HTML before putting the site live AND before he forced his affiliate manager out to get hold of traffic. #failing

GameOn Affiliates signs CasinoLuck and Global Live Casino

GameOn Affiliates has added Net Ent-powered brand CasinoLuck.com and Vuetec white label, GlobalLiveCasino.com to its growing list of affiliate program partners. GameOn Affiliates will be working with both brands to grow their affiliate networks and player numbers across Europe.

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GameOn Affiliates offers Outsourced Affiliate Management services to online gaming clients, such as CasinoLuck and Global Live Casino.

BoogieBet launching on PartnerMatrix

GameOn Affiliates‘ partner BoogieBet, operating off the OddsMatrix and Net Entertainment platforms, is one of the first operators to adopt EveryMatrix’s affiliate management software, PartnerMatrix.

GameOn Affiliates consulted in the development of PartnerMatrix and the system offers fantastic reliability and accuracy to affiliates and licensees. PartnerMatrix unites the functionality of a solid affiliate reporting system with BanaMatrix, EveryMatrix’s fantastic banner creation and serving tool.

Eric Yonce, CEO of BoogieBet said “The power of the PartnerMatrix software gives us the confidence to use it for all our online marketing and affiliate campaigns. We are excited about using live odds and fixtures in our dynamic sports betting banners and attract new players across all of our products.”

BoogieBet is the latest partner to receive GameOn Affiliates’ affiliate management service. Newly live, the BoogieBet Affiliate Program launches officially at LAC 2011 at the end of January with a unique, invite only experience for a number of leading sports and casino affiliates – an exclusive Limo trip to Nike Town on Oxford Circus to design personalised training shoes with Nike iD.

Tom Galanis, Director, GameOn Affiliates, is hugely excited about working with both BoogieBet and PartnerMatrix. “Having been involved in the development of PartnerMatrix, we have witnessed the system’s progression towards an industry-leading reporting tool. BoogieBet have made a wise choice in working alongside EveryMatrix and we are incredibly excited by the prospect of launching the BoogieBet Affiliate Program in style at the London Affiliate Conference with an exclusive trip to Nike Town.”

CasinoCreed launches

GameOn Affiliates’ partner CBN Gaming has launched CasinoCreed.com, which incorporates CBN Gaming’s real casino platform, streamed live from the Regent Casino in Bucharest, Romania, with leading RNG games from Microgaming.

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CasinoCreed Affiliates has recently launched on the NetRefer platform offering affiliates up to a 50% revenue share and a full suite of marketing tools to open up the doors of the Regent Casino to their player base.

GameOn Affiliates at IGE and LAC

GameOn Affiliates is attending the International Gaming Expo at Earls Court from 26th-28th January 2010 and the London Affiliate Conference from 28th-31st January 2010.

We represent Purple Lounge Casino, 1LiveCasino, Ace Revenue, US Blackjack, Devilfish Poker & Casino and CAI Games, so if you’re an affiliate looking for a new casino or poker room to promote, get in touch and let’s meet up and strike a deal or two.

We are also on the hunt for new gaming clients, so if you’re setting up a new venture in the online gaming space and would like to find out more about starting up and running an affiliate program, we’d be delighted to talk to you and see if we can help you out!

Contact tom@gameon-affiliates.com to set up a meeting

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