iGB-Affiliate-Monitor_OCTOBER-2021 - Page 10

10

Affiliate Monitor Listings in the USA

Listings in the USA

● Listing times ● Action on top

PART TWO

LISTING TIMES
The other big news for the affiliate sector in the last quarter came with Gambling . com Group ’ s ( GDC ) listing in the US .
As noted later on page 26 of this report , the company is no stranger to public disclosure having previously had to publish its quarterly earnings to satisfy the demands of investors in its publicly listed bond .
As discussed in the analysis of the second quarter results issued in the wake of the float , the group has continued on its growth path helped by a burgeoning US position .
The float also attracted some analysts to the gaming sector . The team at Jefferies in New York , for instance , initiated its coverage of GDC with a buy , saying that the affiliate sector was a “ clearly defined and supported sector ”.
The team at Truist , meanwhile , said that GDC was the first US-listed affiliate giving US investors a “ chance to play the emerging online sports betting / igaming vertical with the fragmented but highly profitable affiliate model .”
“ We believe international , the bulk of revenues today , should see continued growth while GAMB benefits from the US ’ ultra-competitive nature in its nascent days .” Looking at its own TAM for US sports betting and igaming of $ 38bn at maturity , the Jefferies team suggested that with marketing likely to be worth circa 30 % of that total – and affiliate marketing in turn being worth circa 20-30 % of that – it meant the addressable market for USfacing affiliates was $ 2.3-4bn . Truist agreed that the gaming and betting affiliate market could be worth up to $ 4bn a year .
No wonder , given these numbers , the rush to establish footholds in the US by the leading affiliates and also the evident enthusiasm for the Gambling . com Group listing . That kind of money can turn heads , after all .
At present , Jefferies noted , the US represents only about 14 % of GDC revenue but they expect it to be the fastest-growing segment . Indeed , citing a proprietary player survey of 1,785 US punters , Jefferies noted that out of a list of six known sports betting website brands – Gambling . com and Bookies . com from GDC , alongside ActionNetwork . com , Lineups . com , PlayUSA . com and USBets . com – the GDC brands came out on top .
“ The data suggests GDC ’ s websites to be most popular which , in our view , will be a meaningful driver of future growth ,” the Jefferies team commented . “ We also note that the results may have reflected the value of prime URL assets . Despite GDC having fewer websites than competitors , we view this as a key differentiator iGB Market Monitor