With the potential for the US online sports betting market to dwarf that of any other, domestic and international gambling operators are continuing to flock to the newest regulated states with dollar signs for eyes. But talk to those within the industry and it’s, in fact, sports betting affiliates who stand to profit most.
This piece explains the reasons for this, how affiliates are helping to get the market off the ground and the likely challenges that lay ahead for affiliates seeking a piece of what is set to become a very lucrative pie.
A whole new era
No longer are US citizens subject to the murky waters of unregulated betting at offshore sites.
The decision of the US Supreme Court to strike down the Professional and Amateur Sports Protection Act (PASPA) in May 2018 has paved the way for regulated sports betting to be introduced on a state-by-state basis.
What was once an obscure market of underground and unlicensed betting, is now home to online sports betting operators looking to get a footing in newly established online markets. In turn, offshore sites are becoming redundant and will slowly but surely be eliminated.
The role of affiliates in this process is not overlooked. Guiding US gamblers to safe and secure online gambling sites is paramount to US operators vying to secure new customers and that crucial first deposit.
The bedrock of US sports betting
While there has been great fanfare around legal sports betting in the US and relative success in certain states, speak to some sports fans and they’ll still be none the wiser regarding the sports betting opportunities now available. Or, owing to the length of time the activity was prohibited, there will be reservations, naturally.
Either way, this is a concept the US people are still getting to grips with. Despite the early success enjoyed by New Jersey and Pennsylvania, the industry is still getting off the ground and very much in its infancy. But whether online sports betting would have reached the heights it has already without the work of affiliates is a question well worth asking.
Among a brand new market in which gambling operators are having to make themselves heard above rigid laws and regulations, and consumers are not too sure which way to turn and, significantly, who to trust, affiliates are playing a vital role in raising awareness and educating consumers.
Crucially, it is online affiliates who are assisting in helping to pull players away from the offshore scene, which has effectively held a monopoly of the industry for a number of years and guide them toward the safety of legal gambling sites.
Affiliates are also acting as an intermediary between states erring on the side of caution before committing fully to online gaming, and budding bettors still unsure about the benefits of legal gambling and how the best online sportsbooks come to be.
With change comes a challenge
Evidently, there are issues affiliates are having to contend with along the way. Of which, the biggest comes in the shape of acquiring the necessary licenses needed to make money in each individual state.
Worth pointing out is the fact the licensing process in every state follows no clear pattern. Each has its own unique framework in place with varying operators, meaning no two states are the same. Essentially, the US market equates to working with 50 different countries which prevent affiliates from moving as quickly as they would like. Not to mention the compliance hurdles that need clearing.
In addition, the legalization of sports betting has opened the door for well-known media companies to enter the fray, raising the proverbial bar in terms of competition. Given the enormity of a market destined to stretch across the country, the potential for success is there for everybody, from the giants of the affiliate network to the one-man-band out there.
Land of opportunity
An aggressive market going forwards is without question, as is the likelihood of having to clear yet more obstacles.
But given the industry is only just getting started, and more states are still to legalize sports betting, all affiliates, no matter how big or small the operation, will believe they are in the race.
And why not? As yet, this is an industry with no established order where everything is up for grabs. Providing affiliates know their intended markets inside out and have a strategy in place to deliver the best content in the industry, the US market presents a golden opportunity for all.
