INSIGHT
Another bourgeoning, and slightly more established vertical, is social gaming. The social casino space in the US is a $ 4.4 billion market, with products ranging from table games, slots and poker. As of this past month, nearly 25 % of the topgrossing iOS store apps are social casinos,
including DoubleDown, Big Fish Casino, and Playtika. These powerhouses stand alongside other gaming products such as Pokémon GO and EA’ s Star Wars: Galaxy of Heroes. Traditional casinos have recently begun launching their own branded social casino products, meaning hundreds of products are now available for affiliates to promote.
Opportunities to market igaming So what does this really mean for affiliates evaluating whether to invest in the US market? As Seth Young, Director of Online Gaming at Foxwoods Resort Casino, put it:“ If you have [ US ] traffic, then the US market is worth looking at.”
Specifically for social casino, Young sees the affiliate market as relatively immature, which means low competition for affiliates.“ There aren’ t too many companies driving casino traffic,” said Young.“ At Foxwoods, we’ re seeing higher ARPDAUs and revenue per player. It’ s up and coming brands like this that may be an interesting opportunity for affiliates.”
As for iLottery, the market is young and growing rapidly. Lisiecki of Michigan shared that only 2 % of the 18 + population in
Michigan is active online, which shows the immense potential audience that affiliates can help the brand to reach.
With DFS, the brands are seeking to educate 57 million season-long fantasy users of the possibility to play short-term, daily and weekly games. According to the FSTA,
“ According to Michigan’ s Digital Products Director Jason Lisiecki, only 2 % of the 18 + population in Michigan is active online, showing the immense potential audience that affiliates can help brands to reach”
only 7.8 million have registered with a DFS brand, and of those, 67 % of these users have yet to monetize. For sports-loving affiliates, this is a niche with plentiful possibilities.
Most significantly, many of the verticals face challenges when it comes to marketing on platforms such as Facebook and Google. This challenge represents a valuable opening for affiliates who can help these brands to target niche audiences in a costeffective way.
Challenges to overcome Despite the compelling opportunities that exist in US iGaming, there remain challenges for both brands and affiliates to address. Some challenges can be seen across all verticals and others are uniquely applicable to specific products or jurisdictions.
For example, a shared challenge for igaming, iLottery, horse racing and DFS is the need to geo-target prospective players on a state-by-state basis. As each state has its own regulatory approach to igaming, brands and affiliates must respect the boundaries and restrictions put in place.
With social casinos, the challenge is in the volumes required to stay competitive with the big brands, and this can act as a barrier for affiliates to enter the market. That said, smaller brands seeking to invest more in effectively monetizing a smaller player base may be a more attractive place to start for affiliates looking to earn on a traditional cost-per-acquisition or revenue share basis.
Registration and licensing requirements are the most obvious barrier for affiliates wanting to enter the US market. At the very minimum, for regulated real-money iGaming, affiliates are required to register with each state government, and where they want to earn on a revenue share basis, may have to complete an extensive licensing process. In most instances, it was argued by the panel, this may not be such a bad thing. According to Young of Foxwoods,“ The fact that it’ s difficult to get into the affiliate space in the US can actually be a good thing. This means that for affiliates that are serious about getting into the space, there is less competition and more room for growth.”
Whether the barriers have eased as the market continues to evolve, or the opportunities are becoming more attractive, there is no doubt that both brands and affiliates will mutually benefit from partnering to grow iGaming in the US.
As Senior Manager, Marketing Services, at Paysafe’ s Income Access, ALANA LEVINE focuses on developing partnerships in the igaming and land-based casino sectors in the US and globally. She oversees the creation of turnkey digital marketing solutions for Income Access’ global partners. Alana holds a bachelor’ s degree in economics and a post-graduate degree in finance.
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