Online casinos and the missed opportunity

Online casino affiliates are hugely excited about the US market as additional states legalize and regulate online gambling and open the licensing process for us to enter the fray.

There has been something of a gold rush in New Jersey where affiliates have been fighting hard to get their applications complete and approved ahead of their rivals.

But securing a license is only half of the challenge being faced. Perhaps unexpectedly, some European affiliates are struggling to onboard casino partners in the same way they are used to.

In European markets, it can take a little over a day to onboard an online casino brand – the review needs to be written, the commercial agreement reached and then the switch is flicked.

In the US, however, the process is taking significantly longer as operators require affiliates to complete forms and supply documentation, which is then vetted by their legal teams. This significantly prolongs the time it takes for the affiliate to onboard casino brands, and, in some cases, operators are declining the affiliate’s application to work with them.

This recently happened to us, with a tier-one brand simply saying they had rejected our application at this moment but that we should apply again in a few months’ time. This brand is working with affiliates, but they seem to be mostly US-based publishers and not publishers that have established themselves in Europe before launching in the US.

I imagine this is because US operators do not consider affiliates as a key part of their marketing activity at this stage in the game, and so only want to work with a few select partners. This is understandable, but if you look to European markets, you can see that affiliates are a vital part of an operator’s marketing ecosystem and deliver a very cost-effective way of driving sign-ups.

Operators are currently spending big when it comes to player acquisition – I have read that in some states, costs are hitting $1,000 with operators returning up to 100% of GGR as bonuses.

Affiliates, on the other hand, are working to a one-off cost per acquisition fee of around $250 which in comparison is a very affordable – and effective – marketing channel.

Partner up

So what can affiliates do to reassure US operators that we are a valuable marketing partner?

I think it starts by having a presence in the US which means applying for and securing licenses in each state where we are permitted to do so. The more states where affiliates hold permits, the more reputable and professional they will appear to the online casino brands active in each state.

Where possible, affiliates should open a direct line of communication with operators and their affiliate teams rather than relying on email communication. Affiliates can learn a lot from operators when it comes to how they wish to approach such partnerships, but operators can also learn from experienced affiliates about how it works elsewhere.

I also believe that affiliates should engage more with industry publications and share their thoughts and experiences and suggest ways processes can be improved for both parties.

I truly enjoy working with American online casino operators and brands; they are managed and run by incredible people that are serious about delivering a truly excellent player experience.

As an affiliate, we want to play a part in this and I believe that over time, and as the market matures, they will better understand the value we can provide and look to partner with more affiliates.

In the meantime, we will continue to grow our presence in the US market and establish and strengthen our relationship with operators over the coming months.

While we may only have four New Jersey casinos listed today, I expect that number to ramp up as operators find their feet and look to leverage additional acquisition channels.

Tero Päivärinta is a seasoned igaming professional working as the head of affiliates at CashMagnet Ltd, which owns Mr Gamble. He has extensive experience in the online gambling sphere, having worked in various international roles in the industry for over a decade. As a local specialist, Päivärinta has a close touch with the Finnish and Scandinavian online gambling markets. Currently, his main interests lie in studying customer behavior and the emerging US online gambling market, where he is applying for licenses and negotiating deals to open CashMagnet’s doors to new opportunities.