iGB Affiliate 69 June/July | Page 7

GET TING THE HOUSE IN ORDER Genting being the latest. What do you attribute the rush to? IS: We got LeoVegas on board very quickly. That kind of gave us a bit of impetus, so we went to London Affiliate Conference and got the name out there and since then it’s just been a constant stream of people wanting to have a look at the product. We’re fortunate in that we’re probably the only tool that does what it does. There are other tools, which are for marketing from what I understand and kind of skirt round the compliance issues when it comes to creative. I don’t think anyone was really doing this ‘search a website, find something specific and report back’ thing. straightforward. We sign them up to a fairly basic package and then work with them on standard reports and try to work out what they make of it. From there, we can reduce it, increase it or change the amount of information they get. A lot of companies are getting wind of the fact that they do need someone specific. IG B A FF I LI AT E 6 9 “The good affiliates need to call out the guys that are shouting about the injustices of it all; empathising and giving these guys sympathy is the last thing they should be doing” R E T T E L S ’ R EDITO iGBA: What are operators’ needs when it comes to tracking and monitoring affiliate sites? IS: There are still quite a few different interpretations of what’s required, but over the next three to six months we’ll be in a position where most people know what they’re doing and know what they’re looking for. At the moment the ideas vary but there are things that are obvious, for example old marketing material. As we talk, Genting is launching a new bonus and they want to capture all the sites that are still representing their old one. Non-compliant anchor text is another. That’s become quite a crucial part of compliance issues because it directly links that link to the operator. We look for anything claiming to be ‘risk free’, ‘low risk’, that sort of thing, and anything that purports to be something that it isn’t. The Gambling Commission’s also very hot on anything that induces the player with time-sensitive calls to action, so ‘play now’ for example. When we’re dealing with larger companies we tend to get compliance officers. That’s a different kettle of fish as they already understand what they need to do, but we still work with them to tailor it. It’s peaks and troughs. Right now it’s heading up a mountain because everyone’s learning and there are lots of non-compliant affiliates out there. But at some point it’s going to reach a peak and start to come down the other side because there will be fewer affiliates to work with. lendar 06 Events ca to With operators unable News 08 hammer their old email PR GD uld databases, co 12 Risk and reward iGBA: Do you see a role for Rightlander beyond the igaming space? present SEO-savvy to IS: We have had some discussions with investors who could affiliates with a chance ts 15 be interested in investing in taking it to another vertical, ted environmen potentially t ula en reg h rec wit er ps aft gri ck to ba g but whether that would be us that did it, I’m not sure. D P R : Gettin bounce G At the moment within igaming it’s driving itself, largely because iGBA: Do you have to work quite closely with the operators on rner ACHE A tough times? Nick Ga D demonstrate A E Winning formu the la GC 18 has said that gambling companies need to identifying their needs? H n tio es qu s thi that they are actively involved in affiliate compliance, IS: The biggest issue for us at the moment is that the issue of rs P O is R one T ide ns co U G E O P which said for a compliance platform compliance is landing on the laps of affiliate managers, and 22 anyone could have H apsh the ot best things sn t rke ma g ttin as gaming industry be like ours. To be honest, we’ve probably got a few clients paying us they’ve got two problems. First, they have to get to grips with LatAm w money every month just so they can be seen to be paying money what compliance is, and second they have to try and fit it into their d adapt to the brave ne an t jus ad rs 28 I’m not going to complain about that! lde ho nit ke rtu schedules. They need to understand how to sta huge the oppo each y month. and interpret he ac ad he : 8). PR (p2 GD n tio There are some people who come along and have a look data and what to do with it. world of data protec and decide not to take us on. There was a big one the other day; There can be an element of hand-holding, and when that er 32 us be e in ord ho can g the we did a trial for them but they decided not to sign up because happens it’s a slower process Ge and the quantity of data ttin PR GD of cts pa im the ate tig mi they said there was too much data. a bit overwhelming. n ca s se How busines mands in regulated e Media 37 de Siz ce g lian Kin : mp file co g pro e win liat Affi and the gro ahead alysed by Julia Logan environments is also an ow Sh r Eyes on the prize 42 iGB Live!, the Supe of her presentation at m rda ste combining the Am 45 successor event also p up M&A after float Better Collective to ram d EiG (p15). an ce ren nfe Co e liat Affi strategy 47 Build a winning video US opportunity ge hu the at k loo o Our experts als 50 of the ndike or fool’s gold? May’s landmark lifting Post-PASPA: a new Klo up for grabs following US the by A SP PA r de ban un . federal sports betting Brand unclear: lying at the very heart s ort sp th Wi . urt Co Supreme l not left on the shelf 53 s fundamental shift wil why William Hill is being of American culture, thi ct era int , customers watch only transform how US rrency transition 56 Cracking the cryptocu ourite pastime, but the fav ir the and engage with . rs: s on a global level. iGB Affiliate Issue 69 JUN/JUL 2018 Operators vs fraudste sports betting busines es on? 58 liat affi d an ts alle ts, e-w igh whose side are tionable advice and ins Alongside the usual ac O CE tive llec ficulty 61 Co r tte to Be XLMedia’s little local dif we speak exclusively sed -ba en ag nh pe Co the of d Jesper Søgaard ahea er? 62 list. Post-PASPA party poop second big affiliate to the ng mi co be s es busin t tha s es sin ihs from the bu Data centre, 66 We also chat to Ory We in 2014, XLMedia. ck ba il . first blazed the tra , H2 dashboards FE AT UR E ● ● need businesses will law now in place, r they’ it and whethe new data privacy With the EU’s why they’re holding aspects of the new tion they hold, some customer informa the fu concerned about their business, s are right to be on SEO to grow But while affiliate ses and more says Nick Garner on email databa 28 iGB Affili ate Iss ue 69 JU N/J UL 20 NI CK agen G AR man cy an NE ager d be R is foun fo for Betfa re that der of he ir. wa Oshi s he Bitco ad of se in ca arch sino. Pr for Un ior to ibe t. He that he ha sta rted d a his succ care essfu er in l iga m iga ming ing m ar as sear keting ch 18 FEATURE iGBA: Some of those areas you just mentioned, such as Asia and Germany, are not fully regulated. Are you happy to target the unregulated markets as well as the regulated ones? iGBA: Do you have plans to grow via acquisition in the future? PS: We haven’t really found anything that would suit our budget and our vision and mainly we are looking to build our own projects. PS: Yes, there are benefits to doing that. There are drawbacks, obviously, as you can’t advertise much with paid advertising, but for us it is not a problem because we target our visitors with SEO. As long as the brands we promote are fair to the players, because this is the most important factor. You want them to have a fair game and be sure that you send someone to a place where they will enjoy themselves and not be scammed. So as long as there are such places, we think it is OK to operate in that market, assuming it is not illegal. Also in Germany there are licences in one state [Schleswig-Holstein] and if you have a gambling licence from there you are able to run TV ads. The brands we promote from Germany are mostly licensed in that state. “We have been thinking about targeting Germany and Austria more and are now also thinking about Asia as this is quite an interesting market” look forward to meeting Enjoy the issue and we possible in Amsterdam with as many of you as from 17-20 July. Stephen Carter, Editorial director http://on.fb.me/1CGEIgk @igbaffiliate www.igbaffiliate.com including EU round-up usiness.com email: info@igamingb FREE SUBSCRIPTION www.pensord.co.uk s, Pres sord Pen by: Printed in the UK House, Business Ltd, Bedford Published by: iGaming 3JW, UK SW6 don Lon et, Stre 69-79 Fulham High 4 7 F: +44 (0)20 7265 421 T: +44 (0)20 7265 422 om ss.c www.igamingbusine No part of 7. All rights reserved. © iGaming Business 201 transmitted in any or ced odu repr be this publication may system or stored in any retrieval form or by any means, ission, except for perm en writt r prio out of any nature with igns and under the Copyright Des permitted fair dealing ission for use of perm for ion licat App 8. Patents Act 198 oduce ding permission to repr copyright material inclu ll be made to the sha ks wor d lishe pub extracts in other lisher and dgement of author, pub e publishers. Full acknowle iness Affiliate Magazin Bus ing iGam n. give source must be Ltd, Bedford House, 69- s ines Bus ing iGam is published by The views London SW6 3JW, UK. 79 Fulham High Street, ondents are their esp corr and tors tribu expressed by con azine are not expressed in this mag own. Editorial opinions The Publisher does not r. lishe Pub the of e necessarily thos er image: advertising content. Cov accept responsibility for 54. 1-69 204 ISSN . istockphoto.com PS: We have 30 people. We have a lot of content writers, mostly journalists who cover the news and we have writers of guides for casino. This is the biggest part of the team. We also have some tech guys and a small team that takes care of the marketing compliance in the UK where there have been some changes. iGBA: You seem to invest heavily in editorial compared to many of your competitors of a similar size. Why do you think this is important? PS: We believe that a portal should provide value to the visitors and visitors should come because they find something for them. It is not only about promoting brands and making money. We think sites should be providing people with the information that they are looking for. iGBA: How do you make sure that they are not scam sites, particularly in Asia? iGBA: Your sites focus mostly on B2B news as opposed to many other affiliate sites, which seem aimed more at consumers. What is the reason behind this? PS: We go for brands we have been working with for quite a long time and usually with affiliate mangers who we have been working with for a long time. It is quite hard right now to be sure about a new brand, one which is just three or six months old, so we don’t work with such brands. PS: We are primarily a media company and then we are an affiliate, and for us this type of news – things that happen in the industry – is the news that people are interested in and the news they are looking for. News about the types of new bonuses and content like that is more promotional. We do Marketplace 80 38 iGBA: How many employees do you have and what are their specialisms? iGB Affiliate Issue 69 JUN/JUL 2018 Advertiser index 82 phen Carter Editorial director: Ste gaming.com ion clar ter@ .car hen step é-Stewart nag Gan nah Han Deputy editor: ing.com gam ion clar art@ hannah.gannage-stew s Sub editor: Guy Parson Richard Linn r: cto dire ing lish Pub ming.com richard.linn@clarionga x Pratt Ale r: cto dire Managing ing.com alex.pratt@clariongam ke Designer: Simon Bra ig Young Cra er: nag ma tion Produc ing.com craig.young@clariongam James King Group sales director: ming.com james.king@clarionga Harrison es Jam er: nag ma Sales g.com min nga lario @c james.harrison er: Luke Webb Senior account manag ing.com luke.webb@clariongam k Hill Jac er: nag ma t Accoun g.com jack.hill@clariongamin INSIG So what exactly is preventing e-wallets from trying to stop this behaviour? The problem is that, other than avoiding relatively small fines, there really is no motivation for wallets to properly clamp down on activity like bonus abuse. “Bonus abuse is further exacerbated by fraudsters who scale up their activity by creating dozens of fake accounts” Something needs to change, though, because some affiliate sites currently function as a notice board for fraudsters to browse the latest bonus deals and pick those they like the look of. By the time an operator realises that the money they spent on their latest bonus campaign has resulted in zero new players, it is too late for them to do anything about it. Clearly this is not OK and affiliates need to recognise their role in enabling such behaviour and take serious steps to prevent it. HOW DO WE SOLVE THIS? In fact, e-wallets often stand to benefit through the massive transaction fees generated by this behaviour. Worse still, some wallets actively encourage their users to make payments/ transfers as often as possible, usually via cashback incentives. While this is not illegal by any means, some would call it ‘wallet operator fraud’, since they are gaming the system and encouraging users to make transactions for the sake of transactions. DO AFFILIATES ENABLE BONUS ABUSE? Given their role connecting players and operators, affiliates play an important part in this ecosystem too. A typical scenario would be an affiliate promising an operator that they can identify a certain number of new prospective players for their promotional campaigns. This may sound like a win-win situation (the affiliate gets paid and the operator gets new players), but all is not as it seems. The problem is that affiliates don’t care who signs up to these bonus campaigns, only that they are signed up. In many cases, there is no due diligence from affiliates to ensure that bonus promotions are used by legitimate players. The jury is still out on the role of affiliates in today’s igaming industry, since they can and do serve a valuable purpose. iGB Affiliate Issue 69 JUN/JUL 2018 These are serious problems, but there are ways that the industry can go about achieving change. For instance, were e-wallets linked to a single app or device, the cost of scaling scams such as bonus abuse would become prohibitive and far less popular. Likewise, if e-wallet providers were more transparent with operators and shared better/more data, which is still possible under GDPR, it would be much easier for operators and regulators to shine a light on fraudsters. The arrival of open banking and open APIs could also be a chance for the industry to change the status quo. “Some affiliate sites currently function as a notice board for fraudsters to browse the latest bonus deals and pick those they like the look of” It’s clear that the operator/affiliate/e-wallet relationship cannot continue in its current form, and something has got to give. I believe that 2018 is the year that the industry decides enough is enough, and it will be fascinating to observe how things change over the next 12 months. Watch this space. iGB Affiliate Issue 69 JUN/JUL 2018 3