I NSI GH T
The prospect of promoting Pennsylvanian brands is a major one
for affiliates. Like New Jersey, the Keystone State has regulated
both online poker and casino, maximising affiliates’ revenue
opportunities. The Pennsylvania Gaming Control Board (PGCB)
is also expected to follow the DGE’s inclusive approach towards
affiliates, according to Eilers & Krejcik Gaming. Even better,
Pennsylvania’s 13 million residents will make it the largest pool of
potential players of any of the four igaming markets (Nevada and
Delaware have comparatively small populations).
“This signals a sea change in igaming
affiliate marketing as it nears its second
decade. Gone are the days when affiliates
could register for a programme with
pseudonymous email and Skype accounts”
With the PGCB opening its 90-day online gambling licensing
window in April, the market is expected to go live in H2 2018.
Affiliates can get ahead of the regulatory curve by developing
Pennsylvania-facing sites, content and social media handles now in
preparation. Then, once the market is live, they will have already
built a social following and foundational traffic to convert at the
new PA brands they’ve partnered with.
With so much focus on Pennsylvania’s online casino and poker
market, affiliates shouldn’t neglect an important additional aspect
of its gaming law: the regulation of iLottery. In late May, the state
launched its online lottery, joining Michigan, Georgia, Kentucky
and Illinois in offering digital sales. This provides affiliates with the
tantalising prospect of an affiliate programme for the new brand,
following Michigan’s launch of the US state lottery’s very first
programme this January.
With fewer than 10 million residents, Michigan is only a
mid-sized America market in terms of traffic. However, despite
these challenges, Michigan’s pioneering programme has driven
more than 1,300 player registrations and over $35,000 in net gaming
revenue in under six months, according to Income Access data.
More than a third of promoting affiliates (35%) are non-American.
The presence of both international and domestic marketers in the
US iLottery space is sure to increase if Pennsylvania and other
states follow Michigan’s lead.
POST-PASPA
Affiliates developing a marketing strategy for the arrival of
ilottery and igaming in Pennsylvania were granted an even
bigger American dream in May. The Supreme Court’s repeal
of PASPA, which prohibited single-event sports betting in all
states except Nevada, opens the door on legal sports-betting across
the country. The American Gaming Association estimates that
the country’s unregulated sportsbook market totals $150 billion.
This development therefore serves as a massive potential opportunity
for affiliates, especially as US sportsbooks are expected to model
their affiliate marketing approaches on the UK market.
US sports-betting and related affiliate marketing could soon be
bigger than its British equivalent. Based on a forecast of 19 states
legalising by 2023, the market’s gross win is forecast to reach $4.9
billion, exceeding the UK’s $4.7 billion total, according to H2
Gambling Capital.
Beyond five-year projections, which states will go live with
sports-betting imminently? Gambling Compliance forecasts that
New Jersey, which led the PASPA legal challenge, will regulate
by July, followed by Pennsylvania, West Virginia, Mississippi and
Delaware over the next few months. The Garden State’s online
sports-betting market could be live by the start of the NFL season
in late August, while California and New York will likely consider
regulation in 2019, according to Eilers & Krejcik Gaming.
Affiliates not already promoting New Jersey online casino
and poker brands can start developing sites focusing on the market,
while those already active can diversify their offerings to include the
new vertical. Affiliates already preparing for igaming in Pennsylvania
will have few issues broadening their focus to
include sportsbook, while also developing sites targeting the
other regulating states.
Given the crossover between daily fantasy sports (DFS) brands
and sports wagering, affiliates can prepare for the arrival of sports
betting by joining FanDuel’s and DraftKings’ long-standing
affiliate programmes. Both brands have signalled their post-PASPA
diversification into sports-betting providers. Paddy Power Betfair’s
acquisition of FanDuel in late May suggests that the major DFS
brands will play a vital role in shaping the US sport sbook market.
“US sports-betting and related affiliate
marketing could soon be bigger than
its British equivalent”
From legal sports-betting and ilottery in various states to online
casino and poker in Pennsylvania, the US is transforming into
a land of affiliate opportunities. By embracing the American
market’s multiple verticals while also ensuring their UK strategies
accommodate the market’s changing regulatory requirements,
affiliates will establish themselves in the new world of affiliate
marketing – and still maintain the roots of their revenue.
iGB Affiliate Issue 69 JUN/JUL 2018
43