The landscape of iGaming affiliate marketing in the USA has evolved significantly since its early days. With the gradual but steady expansion of legalized sports betting and online gambling across states, there are new opportunities and challenges for affiliates and operators alike. This article provides an updated overview, offers strategic tips, and highlights current trends to help you navigate this dynamic industry effectively.
Understanding the Regulatory Landscape
As of 2024, over 30 states have legalized sports betting, with more expected to follow. Each state has its own regulatory framework, making it crucial for affiliates to stay informed and compliant. The licensing requirements vary, and affiliates must obtain the necessary licenses to operate legally. Non-compliance can result in hefty fines and loss of operating privileges.
With the licensing regime rolling forward slowly, it is unclear as to how the rest of the states may move forward. Nobody can tell how fast the rest of the country will follow suit. For now it’s a guessing game, but with early adoption key to establishing a footprint for profitable business, here are some tips to ensure that affiliate marketing works firmly in your favor when it comes to considering your customer acquisition strategies.
Don’t take any shortcuts
Even though the situation is still unclear on how the states will regulate sports betting, the rules for working with affiliates in the states that are regulated are very clear. Affiliates must get the relevant licences and operate with the correct due diligence to remain compliant and on the right side of the law. There will be no grey in this regard. Affiliates will need to have their house in order to apply for expansion to work in more states when the time comes. As an operator you will need to ensure you are only working with the partners who can add value to your existing acquisition strategy and are engaging with affiliates in a compliant manner.
There is going to be a cost to enter – legal, compliance, and finance frameworks will need to be reviewed as well as independent account resourcing. So smaller affiliates might take a bit longer to enter and establish themselves, meaning you might find yourself working with a smaller monopoly of affiliate sites to start with, and looking at innovating ways to build these affiliates into your acquisition strategy on a pay -per- performance model that works for your brand.
It’s clear that the bigger affiliate groups are entering fast to get an early digital footprint, to build their brands and to be ready for the market regulation as it continues. For new affiliates looking at this market as a means to expand their business you need to understand the licencing regulation and process before you leap over to work there. The next few years may be tedious as states consider their requirements and processes may not be the same for application so make sure you are working with experienced professionals to get set up for success.
Consider your competitive advantage and the landscape you are working in
Understanding where and how affiliates can work within your existing customer acquisition strategy will be key. With the licencing requirements defending the method of traffic remunerations you might have to consider your partners more carefully and create processes that allow you to do the relevant due diligence within your program in relation to the rest of your marketing activities in the region. Understanding exactly the value of a partners traffic, service, and content in the customer buying journey is key to helping you decide who to partner up with and what pricing you should pay for the traffic they deliver.
Invest in building new relationships & understand player localisation in micro detail
To enter this market successfully you will need to establish good relationships. The options will be limited due to heavy compliance and regulation on the operator and affiliate side. So invest now to attend as many conferences as possible and really get to grips with the local culture and digital landscape. The marketing practices in the USA will naturally be more complex than in the ROW. Local infrastructure for mobile betting will be very different too. Understanding the local sports and what player behaviours are in relation to this online is key to pricing your traffic. If you are experienced in content marketing, or local SEO there is a real opportunity to enter early and sell up as the market matures. The bigger affiliate brands will be interested in acquiring sites that are establishing themselves as a betting brand in local jurisdictions.
Influencer marketing also plays a really important role in this channel growth. Digital marketing and planning strategies might be increasingly different to how operators perform planning for brand expansion and new customer acquisition vs in the more established regions such as EU and UK. We’ve already heard from top affiliates like Better Collective, Catena and Gambling.com that the player values they are experiencing are double that of European counterparts, the opportunity to invest in building a new affiliate brand in the US seems an attractive one.
Key Strategies for Successful Affiliate Marketing
- Compliance and Due Diligence
- Ensure you understand and adhere to state-specific regulations.
- Maintain proper documentation and licenses to avoid legal issues.
- Partner with operators who prioritize compliance and due diligence.
- Building Strong Relationships
- Attend industry conferences and network with key players.
- Establish relationships with local influencers and digital marketing experts.
- Invest in understanding local market nuances and player behaviors.
- Leveraging Technology and Data
- Utilize advanced analytics to track and optimize traffic and conversions.
- Implement robust SEO strategies tailored to local search behaviors.
- Use customer data to personalize marketing efforts and improve user engagement.
- Content Marketing and Localization
- Create high-quality, localized content that resonates with the target audience.
- Invest in local SEO to improve visibility in state-specific markets.
- Collaborate with local sports personalities and influencers to build credibility and trust.
- Adopting a Multi-Channel Approach
- Diversify marketing channels, including social media, email marketing, and influencer partnerships.
- Utilize mobile-first strategies, as a significant portion of betting activities occurs on mobile devices.
- Explore emerging channels like podcasts and live streaming for broader reach.
Current Trends in iGaming Affiliate Marketing
- Increased Use of AI and Machine Learning
- AI is being used to analyze player data, predict behaviors, and optimize marketing strategies.
- Machine learning algorithms help in identifying high-value players and tailoring personalized offers.
- Rise of Micro-Influencers
- Micro-influencers, with their highly engaged followers, are becoming valuable partners for affiliate marketers.
- Their ability to create authentic content and engage with niche audiences can drive significant traffic and conversions.
- Focus on Responsible Gambling
- With increasing scrutiny on gambling practices, promoting responsible gambling is essential.
- Affiliates and operators are collaborating to provide tools and resources for responsible betting.
- Growth of eSports Betting
- eSports betting is gaining popularity, offering new opportunities for affiliates.
- Affiliates can tap into the eSports market by creating content and offers tailored to this audience.
- Enhanced User Experience
- Improving the user experience is crucial for retaining players and driving loyalty.
- Affiliates are focusing on creating seamless, user-friendly interfaces and providing excellent customer support.
Conclusion
iGaming affiliate marketing in the USA presents lucrative opportunities for those who can navigate its complexities. By staying informed about regulatory changes, leveraging technology, and building strong relationships, affiliates can successfully tap into this growing market. The key is to adopt a strategic approach, focusing on compliance, localization, and innovative marketing techniques to stand out in a competitive landscape.
