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Many online gambling affiliates are positioning themselves to enter the US online gambling landscape. The US has become a virtually untapped market due to the UIGEA and Black Friday. Some are anticipating a new gold rush in the US. There are some issues to consider.

There is one major difference between what the US online gambling market will look like and what the land grab of ten years ago was. That difference is the fact that existing brick and mortar gaming companies look to be the leaders in the US industry. This means that companies that already have large player databases will be operating online gambling businesses. This is a big change from when internet startups approached experienced marketers for their players when online poker first boomed.

Las Vegas casino companies and other regional operators will still need an internet presence. Affiliates can still fill the void that US casino companies will be unable to fill. It simply appears that the new US online gambling business will not fit the same mold that the past business does.

Brick and mortar casinos may not understand their new internet business in ways that affiliates with years of experience may. Some traditional casino companies are better at social media and internet marketing than others. One thing that is lacking in most cases is the content business.

There are few potential online poker companies that have created an internet presence for their future business. This could be troublesome for these companies. Many affiliates and other speculators are already creating holding pages that rank for poker room terms related to major casino companies. Few of the major casino brands have created online poker room or casinos pages. This is where affiliates will succeed.

While casinos have failed to plan ahead, affiliates have. Affiliates can offer websites that already rank for US online poker terms, state poker and even brands that are yet to be launched.

Nevada affiliates will require licensing if they share revenue with a licensed online poker room. The same appears to be true in other states that have considered or passed online gambling regulations.

One future online poker operator currently offers an affiliate program for its hotels. MGM Resorts allows website owners to promote their properties though this affiliate program. The commission rate is 3% of the hotel sale. Revenue from amenities or gambling is not included. Online gambling affiliates are accustomed to receiving 25-50% of revenue generated. Commissions may be higher but this may be a wakeup call that US online poker is not going to be as profitable as it is in other countries using the revenue share model.

Ways Around Affiliate Licensing

Regulated online poker rooms may move to a CPA model. This would mean that an affiliate would be paid for every player sent to the online poker room. While debatable, terms may have to exclude a player’s activity and rely solely on a player signing up or maybe making a deposit. Casinos already use this type of product with junket operators that bring them players in Nevada. The junket operators must register with the Nevada Gaming Control Board and have rights that affiliates that will advertise online poker will not have or want. This could mean the difference between needing a license or not.

One way around this is to sell banner space through a media buy agreement. This is done in traditional advertising from radio to television and is also common for more mainstream websites. This would also not require any type of licensing from gaming commissions.

Current Top Online Poker Affiliate Programs

The online poker affiliate business is already changing. PokerStars offers a watered down affiliate program with massive deductions from their revenue share agreements. Full Tilt Poker dropped their affiliate program at relaunch. Party Poker and bwin have shown contempt for their affiliate partners by changing terms retroactively. 888 offers a reputable affiliate program, but only pays CPA. Revenue share is not available at 888 as it was stopped years ago.

Lotteries Pay Affiliate Commissions to Vendors

State lotteries are the wild card here. Lotteries typically pay their affiliates 5% of the ticket sales. Most lottery affiliates are brick and mortar retailers that sell tickets. State lotteries have little experience with affiliate programs outside of retailers but that may change if they partner with experienced online poker operators, which is where Delaware is headed.

The new US regulated market will not be the gold mine that online poker has been in the past. The big advantage though will be that online poker rooms will be starting out with very few active players and a lot of competition. Marketing budgets will likely be large and publishers that produce unique content that ranks well for regulated online poker searches. Those sites will be valuable to US online gaming companies.

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A new 'early warning' system that automatically informs gamblers as soon as their behaviour shows signs of turning into an addiction may help people engage in the pastime more responsibly, says a study. The system pinpoints whether a player's gambling patterns are exhibiting signs of risk and starting to match those of previous players who asked online gambling sites to block them, for a fixed period, to stop them becoming 'hooked' -- an option known as 'self-exclusion'.

The researchers found that by harnessing a machine learning method known as 'random forests' and applying it to a real-world online gambling dataset, the system could achieve 87 percent accuracy in predicting playing patterns which were likely to evolve in an unhealthy direction.

"This project is an example of how artificial intelligence and machine learning methods can be used to address an important social problem,” said professor Philip Nelson, chief executive, Engineering and Physical Sciences Research Council (EPSRC) in Britain that supported the research.

The researchers from City University London has worked with software analytics company BetBuddy to enhance the accuracy of the computer models underpinning the system according to the very latest understanding of the psychological pathways to gambling addiction.

"All UK gambling providers are legally obliged to offer customers a self-exclusion option," Artur Garcez of City University London said.

"Our aim has been to help BetBuddy test and refine their system so that it gives providers an effective way of predicting at an earlier stage self-exclusion as well as other signals or events that indicate harm in gambling. This enables customers to use online gambling platforms more securely and responsibly," Garcez pointed out in a statement released by EPSRC on Friday.



New system to predict online gambling addiction | Zee News

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Online gambling is currently illegal in Switzerland, but lawmakers there are currently considering legalizing the games and regulating them, according to a report from thelocal.ch, a English-language Swiss media outlet.

A bill was submitted to the parliament on Wednesday. It calls for the country’s 21 brick-and-mortar casinos to be allowed to offer the games on the web. Though online gambling is illegal in Switzerland, residents of the country do have access to foreign gambling sites since the law isn’t enforced very well, according to the report.

Since 2007, the country’s casino gambling has fallen 30 percent, the report said.

In addition to online gambling regulation, the bill would allow for-profit poker games outside of casinos. The games could be run if the stakes are low, but lawmakers haven’t yet indicated what exactly they mean by low stakes.

In 2010, Switzerland’s Federal Council upheld an earlier Supreme Court ruling that viewed poker as a game of luck, meaning that it could not be played outside a casino environment.


Switzerland Considers Online Gambling Regulation

In 2006, Congress passed a law meant to rein in the big business of online gambling, but a new investigation finds that nearly a decade later, offshore gaming sites are not only still thriving, but in some cases routing crucial elements of their operations through equipment housed on United States soil.

The investigation — part of a collaboration between The New York Times and FRONTLINE — focuses on Pinnacle Sports, a hugely successful Internet sports-gambling firm that until recently was headquartered in Curacao, where online betting is legal. Despite its offshore location, though, the investigation found that:

Pinnacle, along with other gambling sites, had quietly developed a direct digital presence in the United States, allowing it to communicate quickly with its potential customers … How many of Pinnacle’s users are actually betting or simply visiting the site cannot be known. What is clear, though, is that by 2014, vast amounts of gambling data, once housed legally offshore, were being delivered to the United States from equipment in New York, Miami, Chicago, Dallas and elsewhere. This represented a new and pervasive domestic presence, one that investigators have largely overlooked.

In a statement, Pinnacle said that it had “pulled out of the United States in 2007,” and since then had “never knowingly taken bets from the United States. But American and European investigators have determined that since 2007, the site has had thousands of betting customers in the U.S.

In 2012, some of those customers were the focus of a money-laundering investigation by the Queens district attorney’s office. The probe led to charges against 25 people in connection with offshore sports books, though Pinnacle itself was not charged.

“There were thousands of accounts,” the bureau chief for the office’s rackets division said. “We had 25, but we could have charged 125 people.”

Nevertheless, the continued success of sites like Pinnacle, and the struggles of investigators to slow them, is raising questions about how best to police the industry. As The Times notes:

For years, offshore sports books like Pinnacle have used technology and other means to keep prosecutors at bay. In the United States, field agents are arrested, money is forfeited and the illegal gambling rings are seemingly dismantled. Yet they rise again, with different street soldiers and a new arsenal of deception. The one constant is the Internet, which allows for the electronic brain of these sports books to evolve, beyond the reach of American prosecutors.

This pattern raises a persistent question: Are the successes of law enforcement tantamount to cutting off a lizard’s tail only to see it grow again, and if so, is the battle even worth fighting? Is the better way — with gambling increasingly woven into the fabric of American sports — to simply legalize it so it can be regulated?



Is Illegal Online Gambling Staying Completely Offshore? | Sports | FRONTLINE | PBS

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