As of late, a growing number of lotto affiliate program
operators in the iGaming space have run into trouble – and not because they’ve personally done something wrong. It’s because an affiliate has broken their terms and conditions, either on purpose or unintentionally.
For example, 888 Holdings recently took a big step forward by cutting a large number of affiliates from its program. Adding to this, the company also adopted stricter marketing guidelines to ensure regulatory compliance in the future.
This leads to an important question: should affiliates require a license, much the same as operators?
While this sounds like a solid play on the surface, it has the potential to backfire. Here are five reasons why affiliate marketing in iGaming should remain self regulated:
1. It’s Worked in the Past
Sure, there have been some problems in regards to affiliates neglecting to follow terms and conditions, but for the most part the industry is on solid ground.
This doesn’t mean changes don’t need to be made. It simply means that the system that has worked in the past can be tweaked to provide more oversight in the future.
2. Encourages People to Get Involved
Let’s face it: many affiliate marketers won’t get involved with an industry that has strict regulations.
Without self regulation, new and experienced affiliate marketers could be scared away from the iGaming space, thus harming the industry as a whole.
3. Fewer Hoops for Affiliates to Jump Through
It goes without saying that some iGaming affiliates will do whatever it takes to stay involved, even if they have to secure a license. However, this would be a major hurdle that scares quite a few people away (see #2 above).
4. Fewer Headaches for Operators
Yes, affiliate program operators have run into some difficulties with affiliates neglecting to live up to their end of the bargain.
While many operators are begging for regulation, they may not be thinking about what this could mean to them in regards to their high paying affiliate business
. For instance, what’s the best way of tracking licensed affiliates?
5. There are Other Solutions
Regulation is not the only solution. For instance, many affiliate program
tracking solutions are now designed to provide affiliate operators with an overview of affiliate activity.
Yes, it will take some time to review
and adapt to these solutions, but it’s an easier adjustment than regulating the industry across the board.
What are your thoughts on requiring affiliates to have a license? Do you agree that self regulation is still the best way to go?