iGaming Business magazine iGB 111 July/Aug | Page 114

Marketing & Affiliates MEETING MINDS of Rather than tackling things alone, the best way to grab the opportunities thrown up by the great PASPA repeal is for European and US operators to get their heads together and collaborate. Joined-up thinking is the way to go, so forget going solo and partner up, says Sarah Robertson Sarah Robertson is head of business development at Paysafe’s Income Access. The company’s technology powers the affiliate programmes of over 250 global gaming brands, while its in-house affiliate team manages close to 20 programmes in multiple markets, including the US and UK. She holds bachelor and graduate business degrees from Canada’s University of New Brunswick and McGill University. With change comes opportunity. No maxim better defines the US sports betting market following the Supreme Court’s repeal of PASPA in May this year. Signed into law in October 1992, PASPA’s fall gives way to an environment where excitement and analysis abound regarding forthcoming state legislation and strategic frameworks. As with previous regulatory shifts, stakeholders in US and European markets will increase their potential for success by working together on strategies and solutions that reflect each other’s needs. The list of potential areas for collaboration is extensive, and here are several of the most noteworthy. Affiliate Marketing Affiliates have been important stakeholders in the growth of regulated online casino and poker in the US, but sports betting is a different prospect altogether. Fortunately, the level of expertise found in the European market is seasoned and well-situated to provide strategic insights for both long and short-term objectives. “Making the most of regulated sports betting will require partnerships founded on shared knowledge” Making the most of regulated sports betting will require partnerships founded on shared knowledge and a willingness to assume leadership roles, guiding affiliates and positioning 112 iGamingBusiness | Issue 111 | July/August 2018 themselves for enduring success. As seen with casino and poker, clarifying and understanding the terms under which affiliates are able to operate within US markets can prove demanding but achievable. Having capably navigated evolving legislative frameworks when the US began reopening its doors to igaming, affiliate marketing has gradually established a presence within the market. US sportsbooks and affiliates hoping to leverage the channel for sports betting will need to rely on similar resourcefulness and expertise from stakeholders based overseas. According to iSpot.tv, DraftKings and FanDuel spent more than $300 million between them on TV ads in 2015. While daily fantasy sports (DFS) and sports betting are distinct products, it is notable that each brand scaled back their TV ad spend significantly the following year, cutting it by more than 90% from 2015 to 2016. While new entrants to the US market will spend millions advertising through traditional media, they should also consider digital tactics that can minimise such expenditures and increase ROI. This is where affiliates can integrate as part of a broader digital marketing strategy, given their potential for high acquisitions with smaller upfront costs. State-by-State marketing strategies According to Standard Media Index, NFL in-game advertising was down 1.2% in 2017, but it still resulted in $2.42 billion of revenue. This figure highlights the scope of the advertising environment within which new entrants to the US sports betting market will operate. The impact of legislation on traditional and digital marketing strategies will become clearer with each state that passes its own set of rules and regulations. Early outlooks are optimistic, including that of Evercore ISI analyst Anthony DiClemente who, in a note to investors following the PASPA ruling, estimated that sports