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All starting to make sense now. Frist destroys the market caps of the online gambling operators and the American land based casinos come in and buy them for pennies on the dollar. Then in about 2 to 3 years, after heavy lobbying, they get Congress to regulate online gambling.
Here is the link:
http://www.thebusinessonline.com/Document.aspx?id=80B498C9-D998-40A9-8E89-9534817F7477& the webmaster that has a deal for the lifetime of a player, will get shafted X e. :dafingers
I don’t get it. Internet-gambling is not permitted by US citizens, and is being nipped in the bud at the banking level, yet MGM (and American company) is looking to buy an Internet-based gambling outfit ?????? WTF ????
And so it begins………….
Don’t say that aleph never mentioned this very scenario
when most said it was ridiculous.
:popcorn:
How is it possible for an American company to own any online gambling sites?
hoursurfer wrote:How is it possible for an American company to own any online gambling sites?As long as the site does not serve Americans, then they are allowed. MGM opened up an online casino (no US Players allowed) in 2002 and shut it down in 2003 because it lost money. It was a miserable failure. Scooping up PartyGaming would be perfect for them.
This maybe a great sign for affiliates. Hopefully the transaction goes through. If the US Govt allows an American company to own an online gaming establishment, as long as they dont market to US customers (at the present time). Affiliates can use the same argument if they ever land in court. We are simply not marketing to US customers. With Stating the aformentioned transaction as caselaw. I cannot see the DOJ or anyone for that matter making any sort of seperation between any American company. If this transaction is sanctioned by Commerce Dept. That would be a great sign for Affiliates.
Even prior to the laws MGM tried online gambling and dropped it because it wasnt profitable for them. The Atlantis group did the same. If Land Based Casinos ever do get involved in online gambling again they will not need or want affiliates.
How much money are you guys earning now from Land Based Casinos?
They will be just like any other company attempting to sell their product online. As long as there are at least two competing against each other they will look into all forms of online advertising.
Maybe a good example of what is to come is to follow the UK market. There are land based casinos now that have an online presence and have affiliate programs.
I don’t know why MGM failed before but, branding or not, online businesses need traffic and that will continue to be.
Would it be as profitable as now? That is questionable but entirely dependent on how competitive the situation becomes.
The affiliates that will really get hit here would be older established big money ones that have huge amounts of players on lifetime revenue share. It’s like starting over to them. But if I were them, I’d try and hold onto my sites and keep the rankings in natural search over the next 2-3 years.
If it gets to the point where the US government chooses the sane option of regulation then that will open up paid search again. Some of the affiliates that have been around long enough to remember when this was still available should have a good idea of the money involved there. It may not be what a big affiliate has grown accustomed to on revenue share, but it will still be very lucrative.
aleph wrote:Don’t say that aleph never mentioned this very scenariowhen most said it was ridiculous.
:popcorn:
I brought up the same thing about 1 1/2 – 2 years ago. I even remember saying that it was a crazy conspiracy theory, but that I believed it will eventually come to this.
f&p wrote:They will be just like any other company attempting to sell their product online. As long as there are at least two competing against each other they will look into all forms of online advertising.Maybe a good example of what is to come is to follow the UK market. There are land based casinos now that have an online presence and have affiliate programs.
I agree. While there is competition and affiate marketing remains one of the most cost-effective ways of getting players, affiliates will have a place. You just have to look at all of the “big brand” names inside and outside of the gaming sector to realise that affiliate marketing is a sensible strategy to get market share.
Professor wrote:Even prior to the laws MGM tried online gambling and dropped it because it wasnt profitable for them. The Atlantis group did the same. If Land Based Casinos ever do get involved in online gambling again they will not need or want affiliates.How much money are you guys earning now from Land Based Casinos?
I disagree. BestBuy.com, Walmart.com, etc. have affiliate programs, yet no one makes money from their land based businesses. If an affiliate can bring them a new real money player at a lower price than it costs them internally to do it, then why wouldn’t they have an affiliate program? I remember reading once from PartyGaming’s financial reports that they spent an average of 221 dollars on marketing to get 1 new real money poker player. They pay an affiliate 65 dollars to generate a new real money player. That is a significant savings to their bottomline.
I tend to agree.
Affiliate marketing is cheap. Most all types of businesses have recognized that.
No business spends money it doesn’t have to, and all businesses are always looking for more business.
I think the future for competent affiliates is bright, regardless of individual markets. The internet is just a baby, and we have only just begun.
The landscape may change, the way we advertise may change, who we advertise may change, but there is no way advertising online will cease.
Every business wants the largest possible exposure.
kwblue wrote:I brought up the same thing about 1 1/2 – 2 years ago. I even remember saying that it was a crazy conspiracy theory, but that I believed it will eventually come to this.kwblue there is nothing crazy about business people wanting
all of the pie for themselves.
:rolleyes:
