By Shmuel Segal, Co-Founder and CEO of MediaTroopers
When it comes to regulations of iGaming in the US one thing is clear–the rules of the game are always changing.
The US market reopened to sports betting in 2018 with the momentous overturning of the Professional and Amateur Sports Protection Act (PASPA), allowing each individual state the freedom to decide whether or not to regulate sports betting. Further, after PASPA overturned, not only were states encouraged to launch sports betting, but also online casinos.
While this was a very welcome shift, it was also a logistical nightmare trying to understand the different requirements that affiliates needed to meet in order to gain a license, what licenses are required to work with certain media channels, as well as the marketing guidelines that must be adhered to.
To be successful as an affiliate, one needs to understand how this regulation works and its impact on player acquisition.
Here are three key impacts of iGaming regulation on affiliate marketing:
Legitimacy
One of the biggest reassurances as an affiliate and to the iGaming industry as a whole is working with regulated operators. Not only does it protect our own interests, but it protects the integrity of the games and the players that we acquire.
By regulating the iGaming and sports betting industry, states eliminate the risk of third-party, off-shore operators by granting licenses to credible operators. Moreover, the state also provides necessary criteria which all state-level operators must adhere to. State-backed operators, therefore, have more trust from players, allowing them to be more comfortable placing their bets–as seen in record breaking numbers of players in newly regulated states.
Advertising
Marketing guidelines stipulate what operators and affiliates need to adhere to in order to promote sports betting and iGaming, as well as where we can promote these adverts.
A majority of these guidelines are quite standard, for example not to promote underage betting, or targeting specific groups. However, in some jurisdictions, advertising iGaming services is heavily restricted or even prohibited. Further, most operators will also have their own rules that affiliates need to follow with regards to creatives.
In terms of where, most channels such as Facebook, Instagram and Twitter all have their own guidelines of adverts which need to be followed. In some cases, however, big channels such as Google and Yahoo require affiliates to have a particular license in order to run ads pertaining to gambling or sports betting.
If navigated improperly, these restrictions can create more hurdles for affiliates to run ads and utilize certain channels, which can have a negative impact on player acquisition–especially in the US where the iGaming industry is still so new.
Licensing Requirements
Regulatory licensing requirements can make it more difficult for operators to enter the market, which can limit the number of players that are able to access online sports betting and iGaming services. Further, the lack of competition between operators can also translate to higher costs for the player to participate, and thus further reduce their willingness to play.
From an affiliate’s perspective, having the necessary requirements can have its benefit for this same reason. Because it is such a lengthy and tedious process to obtain the required licenses for each state, if you are an affiliate with them–it means more market share is up for grabs.
The past two years have been a steep learning curve for everyone in this industry. More states have passed, different types of licenses have been introduced and new operators have opened up, but all of these things are what makes the US market so exciting.
Regulation can have positive and negative impacts on player acquisition. However, instead of letting regulations burden our efforts, we at MediaTroopers have adapted our business strategy in a way that allows our approach to adapt alongside the regulations. Through our innovation and persistence in obtaining the required licenses–we can stay ahead of the game.