iGB Intelligence reports Affiliate-Monitor-2Q19-proof4 | Page 17

Part 3: RAIG and the regulatory push and pull Ad bans might yet be an opportunity as much as a threat given the likelihood that, as with Italy, loopholes around affiliate marketing could leave them as the only game in town. said that the final decision has yet to be taken. With rumblings of discontent over gambling advertising also being voiced in Sweden and Italy, loopholes around affiliate marketing could leave them as the only game in town. He concludes that the mix of regulation and Denmark, the direction of travel across regulated technology, as well as the changing nature of Europe is certainly worrying for operators and the affiliate landscape due to continuing M&A, their affiliate marketing partners. simply means more affiliates will have to adapt Yet, as Sims suggests, with the affiliate space to survive. “The days of opinion-based content having shown itself to be resourceful throughout writing are probably drawing to a close in many the years, ad bans might yet be an opportunity as markets but there are many other ways to find much as a threat given the likelihood that, as with customers with a bit of resourcefulness,” he says. Grass is greener One potential solution to the threat of being that any efforts towards either Spanish or tied down by red tape in regulated markets is particularly Portuguese language versions of to look at further geographic expansion. successful sites likely is, as suggested above, While Asia obviously got a mention by a number of firms – and Raketech subsequently announced a deal for the Japanese-facing more about South American opportunities than about either Spain or Portugal. In the last case, certainly, the opportunities Casumba – the possibility of expanding into for affiliates are necessarily limited due to the Spanish and Portuguese language versions of low number of licensees. With only 11 operators, various sites was also discussed. the Portuguese online market offers affiliates Catena Media said it would be launching its precious few firms to work with. AskGamblers sites in both languages in the third quarter, Better Collective said Spain was The problem with Portugal not core but was “meaningful” and Raketech The issue, of course, is the nature of the said it was looking at South America as a regulated regime in Portugal and the tax rates potential region for expansion. applied across both sports betting and online It is important to understand at this point casino. Table 1: Portugal tax rates breakdown Product Initial tax rate (on turnover) (%) Upper rate threshold Effective upper tax rate (%) Sports betting 8 €30m 16 Gaming 15 €5m 30 iGaming Business • Affiliate Monitor • October 2019  14