When the US Supreme Court struck down the Professional and Amateur Sports Protection Act of 1992 (PASPA) in 2018, it opened the floodgates to sports betting in the US. From the middle of 2018 to now, states with some form of legal sports betting went from the four states ‘grandfathered’ by PASPA to 39 states and Washington, D.C. allowing betting. That’s 36 jurisdictions legalizing in eight years.

Soon after the annulment of PAAPA, market activity exploded with several states legalizing and launching every year thereafter. Each state had millions of new customers that operators wanted to reach quickly, and unique regulatory constraints around marketing and betting. That’s where affiliate marketing stepped in, providing local expertise to help these operators rapidly establish a foothold with customers.

That gold rush has now ended. While states with significant populations like Texas and California remain without legal sports betting, the majority of players in the US have access to it. Several states won’t be legalizing sports betting every year like in the past.

If operators no longer rely on affiliates to help them conquer several new markets every year, what roles do these large, third-party marketing companies have to play moving forward? As the market matures, we’re seeing that affiliate marketing has a crucial role to play in the current marketing climate.

What the Mature Market Looks Like

Aside from the lurking possibility of states with huge populations like California and Texas legalizing sports betting, the market is broadly set. Many states that haven’t introduced betting are unlikely to change that position due to the political climate, like in Utah and Alaska.

Sports betting has never been more popular, with total GGR for sports betting hitting $13.71 billion in 2024, according to the American Gaming Association. That was a 25.4% increase year-on-year. However, sports betting has also never been more competitive. Most US states have intense competition between operators competing in saturated ecosystems.

There’s evidence this is impacting affiliate companies, with Catena Media generating 35% less from US operations in 2024 compared to 2023. Another significant operator in US affiliate marketing, Better Collective, saw US revenues drop from $113 million in FY2023 to $112 million in FY2024.

However, this doesn’t spell the end of affiliate marketing. Without the potential to expand into new states, operators are looking to strengthen and grow market share in the states where sportsbooks are already operational and companies have already conducted marketing campaigns with affiliates.

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Companies that have quickly grasped this new approach have shown positive signs. Gambling.com Group reported record Q4 revenues in 2024 and finished with full-year revenue of $127.1 million, a 17% rise from the year prior.

It’s made affiliates effectively take a u-turn to recover all the ground they covered so rapidly with the expansion of the market. For example, the first online sportsbooks launched in Michigan in January 2021, so there was a flurry of marketing activity in the state before that attention moved to other states that launched in the same year, like Arizona in September. Now, affiliates are returning to states like Michigan with new approaches.

Trust and Authority and Blitz Tactics

What do these new marketing approaches entail? Rather than acquiring as many users as possible in a short time, affiliates are now focused on increasing brand loyalty. Affiliates want to increase customer lifetime value (CLV), and are more aware of this metric than the base number of how many new users are added.

That’s led to more personalized advertising campaigns with features like exclusive offers, user engagement tools, and more to keep the focus on retaining players rather than adding more and more customers. Brands are looking to build authority and trust with customers.

Adding a few customers with high CLV is priceless for operators compared to hundreds of customers who will drop off quickly. Affiliate marketing supports these platforms with tailored campaigns using specific state knowledge and personalized customer retention measures.

More Sophisticated Customers

When sports betting first started spreading across the US, most people probably confused parlay bets with the French word parley used in popular movie franchises like Pirates of the Caribbean. That was the average American bettor’s education level on the topic.

So, early affiliate marketing efforts focused on introducing common sports betting terminology to customers while explaining the benefits of sports betting brands. Guides would explain how to sign up with a sportsbook and the difference between a moneyline and a point spread. That easy access to sports betting information made it more straightforward for a broader audience to get involved.

It’s a different market eight years on. Most bettors are far more educated than before and don’t need to be babyfed the basics. If an operator wants to appeal to bettors, it must do more than just offer betting.

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That’s why affiliate marketing has shifted to a more detailed and data-driven approach. Rather than explaining how American odds work, affiliate marketing campaigns now compare the value of odds between operators and highlight the best value.

Unique betting features are more important to marketing campaigns as these can help attract bettors with accounts at other sportsbooks to sign up with a new platform.

This is where affiliate marketing can help operators in mature markets, as these campaigns can highlight those strengths against other brands and make each platform’s unique proposition clear to savvy bettors.

Broadening Audience Demographics

Considering odds regularly appear on major league broadcasts and are discussed by commentary staff for games, it’s clear that betting is becoming increasingly mainstream. As sportsbooks look to consolidate and compete in competitive markets, reaching new demographics is a valuable marketing tool.

While bettors in the US are more educated now, operators are looking to attract more than just players willing to learn all the jargon. New marketing strategies must make betting relatable and appealing to various ages and demographics.

The campaign to capture the attention of bettors in their 20s should look very different from one for older players, and the best affiliate marketers are helping operators tailor these campaigns to hit specific demographics.

Affiliates’ Role as Strategic Partners to Operators

The relationship between affiliates and operators has shifted as the operators need affiliate marketing companies to deliver different marketing services. Many operators see affiliates as strategic partners rather than just sources of traffic.

These new data-driven dynamics will let affiliates play a wider role in operators’ marketing schemes, providing data integration like live stats, API odds feeds, and more. Additionally, affiliates use years of knowledge and expertise to help these platforms run campaigns through different media sources, including mobile.

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Affiliates also play a helpful role in compliance and responsible gambling. Each state has its own requirements, and while no new markets are opening, states that already permit betting can shift rules around what’s available. Scrutiny from regulators is also increasing. Therefore, affiliate marketing can provide operators with tailored campaigns that take a state-by-state approach.

Conclusion

Affiliate priorities have shifted, moving into 2025 and beyond. The gold rush is over, and the market is consolidating. Affiliates need to expand their services to keep up with the evolving demands of sports betting operators, focusing on longer-term customer acquisitions rather than adding masses of low-value players.

Successful affiliate sites will be the platforms that adapt to the new mature market the fastest and with the most effective strategies. Affiliates are no longer just tools that operators use to attract broad traffic. These companies must provide ongoing data and personalized marketing strategies to provide the best support to operators.

Author: Shmulik Segal, Founder and CEO of Media Troopers

“Movers and Shakers” is a dynamic monthly column dedicated to exploring the latest trends, developments, and influential voices in the iGaming industry. Powered by GameOn and supported by HIPTHER, this op-ed series delves into the key players, emerging technologies, and regulatory changes shaping the future of online gaming. Each month, industry experts offer their insights and perspectives, providing readers with in-depth analysis and thought-provoking commentary on what’s driving the iGaming world forward. Whether you’re a seasoned professional or new to the scene, “Movers and Shakers” is your go-to source for staying ahead in the rapidly evolving iGaming landscape. 

Allan Petrilli, Managing Director at Acquire.Bet, talks about paid media and the trends shaping customer acquisition in the regulated North American market

Paid media is very much the future of player acquisition in the regulated North American market, but running successful campaigns is not without its challenges.

More than ever, operators and marketers need to nail not only their creatives and messaging but also the measurement and tracking of campaigns.

Paid channels control much of the campaign and ad targeting, but with stricter privacy rules in play, it’s becoming increasingly difficult to target directly based on a user’s preferences.

Creative fatigue is as real as it is prevalent, so operators and marketers need to achieve creative iteration at scale, not only in terms of volume but also creative types and formats.

Just as important is having measurement dialed in and being able to inform the platforms of what is working – this means having a ton of actionable data at your fingertips so you can quickly decide where to spend your ad dollars.

Then there’s incrementality and uplift, which can’t be ignored, either.

The platforms themselves are starting to take more “credit” for conversions, so being able to zoom out and understand multitouch is key to making the marketing budget go further and perform better.

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The great SEO slowdown

Paid media is becoming increasingly important in player acquisition efforts because there is a clear SEO slowdown. This, combined with advancements in generative AI in search, means brands are going to have to rely more on communities for growth.

Influencer marketing is no longer just getting some with a decent following to promote your brand, with micro influencers becoming a very important piece of the puzzle.

It’s also worth highlighting Discord here as it’s starting to play a significant role, especially in sports betting. This channel is all about community and trust, and we are seeing some really smart partnerships play out across the platform.

Regardless of platform and channel, operators must understand the power of their brand and that by aligning with influencers and communities that match their values, they can supercharge growth.

The only caveat here is that these partnerships need to be authentic.

Market maturation brings new challenges

As the North American market matures, we see the establishment of standard success KPIs, but it’s important that each brand really understands its own LTV and CAC data so that it can drive towards hitting its own success metrics and not just “industry” standard KPIs.

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Why? Because those industry standard KPIs are often skewed by the power players that have spent big to get to where they are today, and won’t be reflective of smaller operations and brands.

It’s also important to focus on incremental growth as the market matures, understand the power of multi-touch and how each channel supports the overall acquisition strategy. Operating in silos is a recipe for disaster.

In addition to this, operators need to have a clear view of their runway – those with considerable cash can operate in more aggressive ways than brands that are relying on quick growth to fund future spend.

Ultimately, there’s no one-size-fits-all approach, and that’s why operators must focus on their own metrics for success and not industry-standard KPIs. They also need to remember that while being nimble is key, being relentlessly focused on data is what will allow them to win.

Regulations do influence player acquisition strategies, but everyone plays the same game

A lot of times, operators will focus on regulation and compliance to make excuses as to why they market one way or another, but the reality is that everyone is playing in the same sandbox and under the same rules.

How marketers push those boundaries, and to the extent they are willing to get creative, is what separates those who succeed and those who don’t.

Take Ontario, for example. You can’t promote the welcome bonus, so brands are having to engage players in other ways – those with kick-ass product marketing campaigns or that offer something truly unique are winning right now.

Of course, paid media is the perfect channel through which to communicate their epic product and unique player experience.

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Rising sports betting platform LuckBet has been announced as the master sponsor for LFA 209, the first edition of the Legacy Fighting Alliance (LFA) to be held in Mato Grosso, Brazil. The event, widely known as the top development platform for future UFC fighters, takes place May 24 at the Malai Manso Resort, in Chapada dos Guimarães, and represents a major milestone for mixed martial arts in the region.

The sponsorship deal includes on-site brand visibility, exclusive content for social media, and live activations during the event, which will be broadcast live and exclusively on UFC Fight Pass.

“We’re proud to be the only betting company from Mato Grosso legally operating in Brazil,” said Ivan Dutra, CEO of LuckBet. “This sponsorship is a strategic move to connect with a new audience while promoting a globally respected sport. It’s even more meaningful as the LFA makes its debut in our home state.”

High Stakes in the Cage

LFA 209’s main event features Brazilians Inglesson De Lara and Bruno “Xinoco” Henrique, battling it out in the featherweight division. The event marks LFA’s 22nd event in Brazil since expanding internationally in 2021 and is the second time the promotion touches down in the Central-West Region, following a prior event in the Federal District.

This edition is supported by the Mato Grosso Secretary of Culture, Sports and Leisure (SECEL-MT) and held at the Malai Manso Resort, the only all-inclusive resort in the Central-West certified by the Brazilian Resorts Association (ABR).

Broadcast starts at 9 PM (Brasília time) / 8 PM (Mato Grosso time) and features live Portuguese commentary by UFC legend and ambassador Rogério Minotouro.