AFFILIATE FOCUS
The go-to guide for getting licensed
Greg Ponesse, chief revenue officer at Compliable, highlights everything affiliates need to know about acquiring licences in the US.
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here is no denying that licensing and compliance is a time-consuming and resource-heavy activity for any betting or gambling company looking to operate in the US. The state-by-state approach coupled with stringent requirements such as employee licensing, create a complex regulatory landscape for all, but especially for smaller organisations that have minimal knowledge of the US complexity around licensing.
Affiliates are a group that often find themselves lost navigating uncharted waters as they look to enter the US. Just as with operator and supplier licensing, the rules are different for affiliates in each state. Some regulators require affiliates to be licensed but not all, and most of the questions we receive from clients and prospects are around what the rules and requirements are. There is an element of optimism when it comes to affiliates that licensing is easy with a minimal cost as they are mainly smaller marketing start-ups without dedicated compliance teams. The reality is that it is complicated and expensive. It is important to know what license is required and which payment model is needed, whether that is CPA or Rev Share.
For operators, their own compliance and reputation depend on the affiliates they work with following and understanding the marketing and advertising rules. In many cases, regulators will go after the operator if an affiliate makes a mistake. Although there is an element of operators leading and coaching the affiliates they work with, each stakeholder must ensure they maintain compliance in an ever-evolving landscape. Compliable currently offers a package for all nine regions that require affiliates to be licensed and we expect that number will increase as additional regions inevitably demand this part of our industry to have licenses.
As markets mature and regulators become more experienced, we have seen a
8 MAY 2024 GIO Affiliates are a
group that often find themselves lost navigating uncharted waters as they look to enter the US. Just as with operator and supplier licensing, the rules are different for affiliates in each state. Some regulators require affiliates to be licensed but not all, and most of the questions we receive from clients and prospects are around what the rules and requirements are.
tightening of the reins and there are more rules and requirements implemented for everyone to follow, not just affiliates. More regulation is bound to happen, especially around advertising rules, to ensure player protection and affiliates are likely to be affected there. We have yet to see a major regulatory incident involving affiliate marketing in any US state, but I imagine that if that was to happen, further restrictions would quickly be introduced as regulators react to any negative repercussions.
In Europe, we are beginning to see that after a more laid-back attitude for a number of years, rules are now becoming very detailed and player behaviours more controlled. Notwithstanding, affiliates are well-versed in operating in European countries where online betting and gaming have been regulated for many years. But as an increasing number of companies see the US as the next area of growth, there are certain things they need to be aware of. The first step is to figure out why, where and how to go about getting licensed. At Compliable, we can advise companies on what exactly is required for the application and offer a bundle for affiliates to get licensed across all states where it is required and guide them through the whole process. When it comes to renewal, we ease the burden on how to get through that. For an affiliate that doesn’t want to spend a lot of money on attorneys and external compliance support, reg tech software such as ours can mitigate that and provide an alternative in a quick and correct fashion. For affiliates keen to enter the US, it is important that they do their homework and due diligence and prepare for some potential challenges around licensing and compliance. But the US holds a lot of potential for our industry and can be a lucrative adventure for any company who are prepared to invest the time and resources.
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