The second-quarter results of the listed marketing affiliates were eagerly anticipated as they were expected to provide valuable insights into the impact of the Covid-19 pandemic on the gambling ecosystem. The results indicated that affiliates focused on casino activities performed well during this challenging time. In fact, some affiliates not only managed to cope but also thrived, with most companies experiencing year-on-year revenue increases. However, Better Collective, with its strong emphasis on sports betting, was an exception to this trend. As sports events have started to resume globally, there are indications that both casino and sports betting revenues are gradually returning to pre-crisis levels.
Industry insiders are cautiously optimistic that the pandemic may have accelerated the shift of the gambling market to online platforms, which could benefit the industry in the long term. However, affiliates are less optimistic about the increasing likelihood of affiliate licensing in European jurisdictions, particularly in the UK. Nevertheless, some experts believe that affiliate licensing can bring advantages to affiliates. Similarly, gambling advertising restrictions are spreading across Europe, but as demonstrated by the experience of affiliates in Italy, there are still opportunities to be found even with these measures in place.
The introduction of bonus restrictions is a less positive development for affiliates. The Swedish regulator acknowledged that its Covid-19 induced crackdown on bonuses may have been excessive. Moreover, the recent implementation of bonus bans in Spain has raised concerns about the future of this important tool in the affiliate toolkit.
Stephen Carter
Editorial director, InnovateChange
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