Part 2: The US affiliate opportunity
Part 2:
The US affiliate opportunity
W
hat should we make of the US outcome over there (in the US),” he added. “We
opportunity for the affiliate sector have a good reputation and want to build on it.”
at present? The biggest two in the
sector are now positioned for picking up potential The DFS problem
US growth, yet the figures we have seen to date One aspect of the US business alluded to on the
suggest it will be a while before we see the call which will be examined closely is the degree
degree to which US sports betting may transform to which, in New Jersey at least, the affiliates
the gambling affiliate space. have been somewhat sidelined due to the daily
Catena Media is certainly betting that the US
fantasy sport (DFS) beginnings of the early
will be central to its business in the years to come, market leaders. Both DraftKings and the Flutter-
with chief executive Per Hellberg saying the owned FanDuel have extensive and ‘live’ customer
question was simply one of quantum and when lists from their DFS operations, which they have
the uplift would kick in. successfully relied on to fuel their market entry
“We expect the higher numbers to come,” he
told analysts. “We had a very good July. We live
into sports betting.
Hellberg suggested that Catena’s fortunes
by previous statements. We think the US will would reverse once there was further operator
double our business.” competition, particularly in New Jersey. “There
At present, analysts believe the US represented
are also more operators and they don’t have the
circa 10% of Catena’s revenues in the first half and databases,” he told the assembled analysts. “So
with Pennsylvania coming on stream they expect they will need more affiliation; it will take a larger
that percentage to rise to circa 15% by the end of part of the revenues.”
This could well be true; the newer market
the year.
Hellberg referred to the good news on states
entrants – whether that is MGM, Bet365 or Fox
such as Pennsylvania opening up when he said Bet – do not have the DFS customer lists of
that with regards to the process of state-by-state DraftKings and FanDuel. But they do have other
legislation, “everything improves for the better”, strings to their marketing bows; MGM has the
not just for the second half of this year, but also huge M life customer loyalty scheme, while Fox
for 2020 and beyond. “We are very happy with the Bet has the Fox Sports ownership behind it, on
The degree to which affiliates have been sidelined
due to DraftKings and FanDuel’s extensive and ‘live‘
customer lists from their DFS operations will be
examined closely.
iGaming Business • Affiliate Monitor • October 2019
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