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This is why you dont want the official legalization

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  • #613190
    Anonymous
    Inactive

    of online gambling.

    http://www.gambling911.com/gambling-news/internet-gambling-hot-issue-months-ahead-says-aga-president-111708.html

    and if you honestly think the major landbased sportsbooks will pay or need affiliates you are nuts!

    #787257
    Anonymous
    Inactive

    Sorry but I disagree with you. Online gambling is now legalised in the UK in terms of the companies themselves being able to advertise on TV but this doesn’t stop William Hill, Ladbrokes, Coral, PartyPoker, InterCasino etc still having and using affiliates. From the online gambling companies point of view why would they not want to use affiliates, the more players they can get the better, if they can get them via normal advertising then great but a lot of people will still prefer to visit review sites first and this is where we can offer a good service and also earn some lovely money. :)

    #787261
    Anonymous
    Inactive

    @john1124 186994 wrote:

    and if you honestly think the major landbased sportsbooks will pay or need affiliates you are nuts!

    Well call me a cashew then …
    :roflmao:

    Sportsbooks love volume. Gaining bigger size and spread of bets makes running a sportsbook much easier and they can create situations and pricing where the sportsbook makes a profit no matter what results.

    Sportsbooks are risk adverse operations that like to have a locked in profit.

    Smaller sportsbooks actually have to handle markets where individual large bets can actually leave a sportsbook in a situation where the wrong resutl can cause a loss.

    As Heimdahl has pointed out, in European jurisdictions where betting is legal and openly advertised, the biggest players in the online industry understand the importance of affiliates and the extra balancing traffic that they bring in.

    Paying 30-35% share on the profits associated with that traffic is not considered onerous compared to not havnig that traffic at all … and it possibly works out more cost effective than TV and print advertising costs?

    I see no reason why US licensed operations would immediately steer away from a proven method.
    :hattip:

    #787264
    Anonymous
    Inactive

    They will always want our traffic.

    Besides, I never buy anything online unless i first read a review and see what others think.

    #787268

    Some industries rely more on affiliates, some less. Online gambling will always need the affiliates and that will never change.

    #787269
    Anonymous
    Inactive

    Any business wants to do more business and will use any available advertising vehicle it can afford.

    The affiliate business is used by all sorts of online businesses and it is here to stay, no matter who runs the online casinos.

    The grey area is preferred by many casinos because no taxes and fees are levied. We however already pay our taxes. So does Vegas.

    Look at Britain as example. Great business there for affiliates, all legal and licenced.

    #787274
    Anonymous
    Inactive

    @john1124 186994 wrote:

    and if you honestly think the major landbased sportsbooks will pay or need affiliates you are nuts!

    I’ve seen a lot of people suggest this over the last 2 or 3 years, but I’ve never seen a convincing reason why a company wouldn’t use affiliates to promote their product. It’s just another marketing channel, and the legalization of gambling wouldn’t change that. All kinds of large companies have affiliate programs, regardless of how strong their brand is.

    #787276
    Anonymous
    Inactive

    I have long been against complete legalization, for that same reason.

    Gooner – the UK bookies and the US bookies are two different worlds. Just to see an example of legal online gambling – visit YouBet.com (legal online horse racing betting website in the US) and look for “affiliate” :) the best you will get is $50 if you refer a friend. The same goes with TwinSpires, etc. If they loved volume why don’t the currently legal websites offer affiliate programs?!?

    Also, Will Hill pays affiliates peanuts, BlueSquare’s affiliate system sucks, Ladbrokes could give 2 :bullshit: about their affiliates and I could go on and on. InterCasino and PartyPoker are 100% online and they are not a good example.

    And as far as casinos, I don’t think there will be any “online casino junketeers” and even if there are, trust me, 30% of NGR will look like a distant dream :) 5%-7% is my prediction.

    #787278
    Anonymous
    Inactive

    Just to add – the current percentages in revenues we are seeing stem form the fact that the online gambling websites cannot advertise. Imagine tomorrow if sports betting ads were legal on websites such as ESPN, FOX, SI, USA Today etc. Would you spend a million in creating an affiliate system and HOPE for good results or would you spend a million in ads on ESPN infront of tens of millions of sports visitors monthly and GET instant results?

    We are currently the ONLY channel online gambling websites can use to advertise in the US, hence the 30% commission. If we had to compete with TV, Radio, ESPN etc, we would be happy to get 5% if anything.

    I am such a strong believer in this – if online gambling is legalized US-style, I will exit the industry immediately and re-orient to something else.

    #787281
    Anonymous
    Inactive

    @Stupid 187025 wrote:

    Just to add – the current percentages in revenues we are seeing stem form the fact that the online gambling websites cannot advertise. Imagine tomorrow if sports betting ads were legal on websites such as ESPN, FOX, SI, USA Today etc. Would you spend a million in creating an affiliate system and HOPE for good results or would you spend a million in ads on ESPN infront of tens of millions of sports visitors monthly and GET instant results?

    never seen an affiliate system worth $1 mil! more like $50K, which is a 20 sec advertising spot on tv. hardly something that can be compared.

    #787285
    Anonymous
    Inactive

    When I got started the casinos WERE advertising all over Google and Yahoo, Yahoo mail (wildly popular back then) and all over the place. They still has affiliates and were paying what they pay today. They were also advertising on some TV shows and all kinds of land venues.

    #787294
    Anonymous
    Inactive

    I think the possibility would exsit for commission rates to go down, however the ability of having legal access in the U.S. would offset that 10 fold.

    If they get in the game, they will want global traffic, and even a major land casino can’t afford to reduplicate that kind of marketing penetration.

    I think there will be more ad buys for smaller affiliates as well, versus straight commission.

    It may even create serious global competition for affiliates and the rates may not go down at all.

    It will CERTAINLY create a new, or RE-NEWED spirit of competition with our present offshore partners, but they would also benefit from a massive influx of U.S. players simply because it would be 100% legal.

    Never a dull moment, and hope springs eternal, but I think legalization in the U.S. will create amazing new ways to market via the media, and would be a boon for all affiliates, and our current offshore partners as well,…..whom we should not forget if this were to actually happen!

    #787302
    Anonymous
    Inactive

    never seen an affiliate system worth $1 mil! more like $50K

    And that’s why we are where we are :) But seriously, a good aff system would well cost $1 mil a month. You need to factor personel salaries, licenses (if any), maintenance/equipment, and let’s not forget that if competition exists, you have to advertise your affiliate program, just like you would a casino. My guess is the current big online casinos spend around $50K A MONTH on running their programs.

    And let’s not forget the 30%-40% commission the current aff programs pay. which is the biggest expence of an aff program. If you run 1 mill ad and get 10,000 players, you have paid $100 per player (just an example). If each player on averages loses $300 per year, you made a cool 2 mills. If the 10,000 players came through RevShare at 30%, you made pretty much the same, EXCEPT, you paid salaries and service costs, not to mention advertising the program on various website (such as CAP), along with the headache of running this thing :)

    #787303
    Anonymous
    Inactive

    Oh, I see where our disagreement comes from. You guys believe that if online gambling was made legal, the offshore casinos and sportsbooks will be allowed licenses.

    I believe that if online gambling is legalized, it will be limited only to the current B&M players (MGM, Mirage, etc.). I would be really stunned if Bodog or Slotocash are granted licenses to operate legaly in the US.

    #787308
    Anonymous
    Inactive

    I don’t think there is a way in the world they can legalize Online Gambling in the U.S. and restrict the rest of the world.

    Nope,… if it happens, it will be international, and the offshore guys will just have to pay the fees and taxes just like any other U.S. Company would.

    Eitherway it works for the offshore casinos because the funding restrictions would have to be eliminated to accomodate the numerous U.S. Casinos!:roflmao:

    Therefore we’d be right back to the GOOD OLE Days of 8 or 10 years ago!
    Business as usual!:roflmao:

Viewing 15 posts - 1 through 15 (of 28 total)