GPWA Times Magazine - Issue 44 - July 2019

REGULATION AND NEW MARKETS One of the big events of 2018 was the decision in May by the U.S. Supreme Court to abolish the Professional and Amateur Sports Protection Act of 1992 (PASPA) and the introduction of regulated and legalized sports betting in more than a half dozen states. Even in these early stages, however, it appears that states like Pennsylvania and West Virginia are following New Jersey’s requirement for affiliates to be licensed. In New Jersey, Gambling.com Group re- cently obtained an Ancillary Casino Service Industry Enterprise (CSIE) license. Holding such a license will allow it to strike revenue share partnerships with operators in the state. It had previ- ously only been able to arrange flat fee deals with operators. The group’s chief executive, Charles Gillespie, hinted at the strategy for affiliate regulation in other states: “ Our application for an Ancillary CSIE license should be taken as a clear statement of intent for our big plans in New Jersey. It also demonstrates our commitment to working with New Jersey to make the state the model for licensing and regulating affiliates, as more states come online with gaming and sports betting in 2019 and 2020 .” It is clear, therefore, that affiliates wanting to get involved in regulated U.S. markets will have to demonstrate both that they can meet the necessary standards and that they have a service to offer that is of value to iGaming operators. Looking to the emerging markets that are regulating in Africa and Latin America, there is a new role for affiliates. They can provide a valuable service not just by explaining the benefits of the online affiliate model to the existing retail operators, but also by offering advice about building an online brand. NEW BEGINNINGS Affiliates who wish to be in the business for the long term should be prepared to re-assess who they work with and why. They should also be prepared to review what entertain- ment and value they offer to consumers, the nature of the traffic they generate, and where they send that traffic. There will always be a role for “good” affiliates bringing “good” traffic. But what constitutes “good” is going to change for certain operators in certain markets. An affiliate commented at the recent Betting on Football conference in London last spring, “It’s good that it is difficult. It makes the sector raise its game. We have to think long-term and sustainable.” For those who are serious about staying in the sector for the long term, treading water simply won’t cut it. You will have to start swimming. Short-term thinking Long-term partnerships Tactical traffic “tap” turned off and on Strategic use of affiliate leads Quantity Quality (in both traffic and content) Aggression Integrity Lorien Pilling has more than 15 years’ experience in the gambling sector. Since 2008, he has been a research at Global Betting and Gaming Consultants, which provides practical and insightful consultancy, data and market reports for the global gambling industry. Rewriting the Rulebook 29 G P W A t i m e s . o r g