In this article, we look at the nuances of affiliate marketing in gambling according to excerpts from an interview with Matching Visions CEO Dennis Dyhr-Hansen for the overseas LC resource.
Regulatory hurdles
The main obstacle from the legislative side is in the countries where the licensing procedure starts. An excellent example is what is currently happening in Germany. There, brands will have to comply with regulations if they want to apply for a license. All affiliates promoting casino offers will also have to comply with these rules and regulations.
The affiliate marketing situation in Germany will differ depending on how brands interpret the future rules. Some will change deal models from revenue share to a very small price per conversion, making it very difficult for affiliates to continue to promote due to low financial motivation. Also, not everyone is willing to follow strict rules. For example, prescribe disclaimers, add different terms and conditions on their sites. Many are not willing to remove many words that regulators will prohibit the use of, including terms such as casino.
According to Dyhr-Hansen, if the procedures for introducing the new rules are soft and slow, they will be as thorough and correct as possible and implemented with minimal loss to the industry. Most affiliates should be able to adjust to the rules and adhere to the new requirements. The key question is: will affiliates be able to survive financially while the changes are being implemented?
Will affiliates remain the main channel for casino promotion in 2022?
Dyhr-Hansen is convinced that affiliates have always been the main channel for promoting casino offers and will remain such not only in 2022, but for many years to come. The main changes may be related to the types of arbitrators, as we see a shift in the approach of choosing affiliates to promote online casinos.
This vertical has recently become much more transparent and accessible. There is now more information in the public domain about promoting casino affiliates. Affiliates have started devoting more time to training newcomers, which attracts more and more affiliates to the gambling sphere.
There is a nuance here with the sources of traffic. So far, we’ve seen more growth in traffic from affiliates targeting streaming platforms, social media, and unique types of promotional casino offers. Now the question is more about how affiliates will continue to be the main promotion channel for casinos due to a number of advertising restrictions.
Will the risks for affiliates working with casino offers increase?
In any industry involving services rather than physical products, there will always be risks. There are licensed brands or operators everywhere who may do certain things. It is quite possible that you will disagree with these things. The key here is the human factor and the ability to assess the risk yourself.
The main risk for all affiliates is when a casino doesn’t want to pay or goes broke before all payments and invoices are paid, correctly processed and closed. These are the most difficult cases, they are known everywhere and they are solved directly. It is very important for every affiliate to always have documents with them confirming the arrangements. Of course, this is not 100% insurance against bad things, but it will help you fight for your legitimate payments.
Trust is extremely important. When you work with a casino through an affiliate network, it ensures maximum transparency with the advertiser. Affiliate networks need to protect each partner and make sure that they know what they are getting into.
What data is important for working with affiliate networks in gambling?
Affiliate networks rely on knowing what works and what doesn’t. If an affiliate doesn’t have the right data, it won’t be able to competently advise affiliates on offers and guarantee profitable monetization of their traffic. For every affiliate network, it is not only the income that matters, but also how the casino brand converts, whether it is retained in the market.
Information on possible countries of promotion is also very important. Before launching an offer, the affiliate checks whether the offer works in this country for our affiliates? Do we have enough gathered experience of internal affiliates to promote in that country? What is the conversion rate? What is the value of the offer for players and what can we improve?
What are the pros and cons of affiliates working with casino offers?
There are many professionals in the gambling industry. However, as Dyhr-Hansen points out, the most important thing is the tight relationships between casinos and affiliate networks, as well as those networks’ relationships with their partners. If you build strong and trusting relationships, you can go a long way and become a true pro.
Of course, there are other pluses: you can make very good money here. If you have sensible business plans, you can use many of your talents and previously acquired skills in other areas in this industry. Then you can move even faster. Overall, the iGaming industry is incredible, and anyone who wants to get into this world will be pleasantly surprised!
Of the minuses, it is safe to say that there is a bias against gambling. The world has always had a negative attitude towards gambling because of problem gamblers. However, today, gambling companies, state authorities and organizations have done quite a lot to provide full protection to players in online casinos. Regulations have been put in place that all casinos must abide by to ensure fair and responsible gambling.
Are there any specifics of affiliate marketing for betting shops?
Dyhr-Hansen here stresses that it is not the “features” but rather the “difference” that should be highlighted here. The difference between online casino promotion and betting promotion is very big. Sports betting works completely differently from online casino gaming and betting. It has its own “different” affiliate marketing, different player values, different deals and different ways of doing business.
Is getting betting traffic harder than casino traffic?
When the pandemic hit the world in 2020, it became much more difficult to promote betting shops. The abolition of live games and sporting events has changed the world of online gambling in many ways, as well as shifting the focus. For example, cybersports, online tournaments and online casinos have become more popular.
As the pandemic subsides and vaccination and other measures gradually reduce the heat, we see the sport making a comeback. Now new opportunities are opening up again.
Sports betting is no more difficult to promote than casino offers, it’s just different. As mentioned earlier, the way you promote sports and betting is very different from casinos. If you want to focus solely on sports or betting traffic, you will need a different workflow and consideration of other nuances.
The Bottom Line
So, Dennis Dyhr-Hansen, an expert in the world of affiliate marketing for gambling, emphasizes in his interview that in order to successfully promote casino offers you should take into account a number of nuances. For example, increased risks associated with increased regulation of online gambling in some countries.
The expert insists that the basis of becoming a true professional with growing income is to build strong trusting relationships with partner networks. It is also important to understand that the scheme of work with betting and gambling offers is different. Now is the right time to test new traffic sources and connect to the growing gambling market in order to grow as a professional and increase your income.