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I don’t think it will just become legal across the board – we will have to see who gets licenced.
I am sure everyone is trying to prepare for this.
Will the affiliate structure remain the same? Will we be credited with old, dormant players? Will there be rules and restrictions applied to affiliates?
Only time will tell.
I think there will be an adjustment period, and after that we should see a prosperous business.
I really think that if it goes 100% legal, were all going to be looking for different jobs.
Dont believe that we can compete with some of the huge land based casinos here who can throw tens of millions into advertising.
On top of this these companies have huge databases of players who have played in there land based casinos,
Who would you trust more, would you play in a harrahs online casino or in xyz casino.
Think if they do keep affiliates abroad, cpas would drop into the $20 range and if lucky maybe a 5 -7% rev share.
Aren’t some online casinos just as big as the land-based ones now? They’re certainly big enough to spend years planning a strategy for the US market and to not let themselves get rolled over.
Sometimes we see online casinos or other online businesses try to start up without an affiliate programme but nearly all of them relent in the end! Why would new online casinos from land-based operators necessarily lower the CPA or revshare rates do you think?
If everything became 100% legal, I don’t see why real world casinos would ignore the affiliate industry as a revenue stream. After all, we have all of the top online gambling related keyword positions. It would seem odd to have and enthusiastic customer base out there searching for online casinos, online poker, top 10 lists, best bonuses or whatever and never find a link to a land based casino. Maybe margins would be smaller, but if the retention is better then doesn’t that have the potential to even out or be better for affiliates. Tough to speculate on any of this until something actually happens, but as with every twist and turn in this industry, affiliates will figure out how to keep building their businesses.
The most profitable phase for online casino affs was years ago, before any legislation was introduced.
Party and others were advertising on Yahoo mail – you’d see them everytime you’d open your mail.
They were all advertising all over the place and spending a ton of money on it.
And still, it was the most profitable time for us affs.
The more ad money a big company has, the more ad venues they will seek out. I have no doubt that whoever is going to be licenced will make good use of affiliates.
Look at the UK, it’s legal there, yet all the big gambling companies are using affiliates.
I am quite sure though that some sort of government imposed rules will be imposed on advertising, and that may affect the way we do business.
I don’t think affiliates would be ignored, just look at Argos, Ebay, British Gas, BT, Sky, Walmart etc. who are all massive but still have affiliate programs…..I do think payments will be lower and you won’t see lifetime commitments but there will still be a shed load of money to be made as it is still a premium sector….ANd if half ignore you there will always be casinos out there that won’t
And as for existing players, very hard one to predict – You may start with a huge negative from the pre taxes the operator has had to pay during the time….and then they mak stick in an reactivation fee…..Lots of excuses that could come up….Or you may start making lots more overnght…..who knows?
I think we will see a totally differnet revshare structure but we will not be ignored. The market will become saturated and I have a feeling we will see revshare drop to 15% maybe even lower with some companies. CPA will become them norm maybe who knows and also no more lifetime for the players.
Just my thoughts but I think we have a long road to cross before we get there folks.
@bonustreak 226284 wrote:
I think we will see a totally differnet revshare structure but we will not be ignored. The market will become saturated and I have a feeling we will see revshare drop to 15% maybe even lower with some companies. CPA will become them norm maybe who knows and also no more lifetime for the players.
Just my thoughts but I think we have a long road to cross before we get there folks.
I think CPA and Revshare will come down.
But it wouldn’t surprise me if a big casino decides not to use affiliates in their first 6-12months of operations, instead deciding on using a big wad of cash to buy up traffic on Google.
We have a similar situation in Australia, where only Australian licensed sportsbook are allowed to buy sportsbook traffic from Google from adwords and the like.
So if a few casinos get licensed in the US, because they have the license, they will buy the Google traffic (being allowed to).
Imagine if 2-3 casino groups were allowed to buy Google casino adwords traffic, and no one else was allowed to…
The big land casinos will still likely compete against each other though.
If one big brand casino is offering 15% revshare and another is offering 30%, then Casino B is going to be all over the place with 5 star recommendations.
@ScottB 226471 wrote:
The big land casinos will still likely compete against each other though.
If one big brand casino is offering 15% revshare and another is offering 30%, then Casino B is going to be all over the place with 5 star recommendations.
I’m not sure if that will happen, it would be in the interests of the big land casinos to work together to generate profits by keeping the %’s low, rather then rocking the boat and increasing costs to acquire more players.
But I can see CPA and media buys and advertisement placements being the big drivers for their traffic. Wondering if regulation also means that they get to advertise on TV, billboards, radio etc.
