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Not a Perfect Relationship: Affiliates and Operators Should Have Closer Cooperation

18 July 2020, 11:44
Votes: 1

Discussions of the problems connected with affiliate marketing often appear in news about gambling. This topic will always remain important, especially when it touches upon the relationship between gambling companies and affiliates.

Not a Perfect Relationship: Affiliates and Operators Should Have Closer Cooperation

At the IGB Live online event, experts have discussed how the affiliate business can improve its current state. According to them, more focus on user journey and investment are required to survive under current conditions. Businesses should implement something unique, stronger in the niche, and it will make them more competitive. Affiliates that operate in niche markets are more attractive for acquisition.

Other key factors are legal operation and licensing. RAIG (the Responsible Affiliates in Gambling) supports the licensing framework for UK affiliates. A licensed affiliate regime would provide benefits to the market. It will help to focus more on identification, enabling operators to know who active affiliates are. Barriers to license entry would be low. However, the risk that the licensing regime can be too strict and alienate affiliates still exists. Affiliates need to have relevant information on gambling addiction and can help with providing “healthy consumption” of gambling.

How to improve the relationships between operators and affiliates?

Big clampdown on affiliates in the UK has affected industry relations. However, both sides should try to have a dialogue. Closer cooperation, before new guidelines are released, would be better for all the market participants. Operators need to share information early on to support their partners. The experts have concluded that operators and affiliates should work together for sustainable growth.

Is it possible to prevent affiliate fraud?

Speaking about affiliate fraud, the experts have provided exact figures – over 1 billion pounds of bonus abuse. Each account can earn over 4000 pounds from welcome offers alone. The main reason for this is that the technical foundation of iGaming is flawed. The ability to store value in slots leads to money laundering, as well as the ability to withdraw cash at any point during a promo. Many operators don’t have verification on their websites, which exposes them to more forms of abuse. Moreover, the economic effect of COVID-19 causes increased fraudulent and exploitative activity.

Read more: How to choose the best software for casinos?

Read more: What everybody should know about gambling addiction

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