The number of casino affiliates in Europe is staggering, and they are instrumental in driving traffic to the various casino and gambling sites. A successful affiliate can make a ton of money from online gambling, without having to go through the trouble of starting their own online casino or poker site. But a trend is emerging, where the number of actors is decreasing – and this is a good thing for casino affiliates.
The trend of M&A.s amongst casinoaffiliates is so strong that one day in february, to aquisitions was presented on the same day. One from Catena Media and one from Gaming Innovation Group.
What is happening is that affiliate networks get bought up, both by other, bigger, networks and by the operators of different gambling and casino sites. These acquisitions can be costly affairs, and the price of a successful affiliate network can run into the millions. Successful affiliate networks often have huge profit margins, as high as 80 % or more. No wonder then that they're being acquired at an accelerating rate. According to Peter at Casinosonline.ie, an irish affiliatesite, “this is currently a trend in the European gambling industry”.
There are several reasons for these acquisitions. It's a quick and easy way to enter new markets, without having to go through the trouble of obtaining agreements and deals with gambling operators in said market. Acquiring an established network with existing sites saves considerable time, giving a head start when entering the new market. Not to mention, the operators of these networks know the local market, and how to attract potential gamblers to their sites. Understanding local preferences is essential to success.
Affiliate networks will likely continue to grow through acquisitions for the foreseeable future. This growth in size of affiliate networks will likely lead to even more customer referrals to the various online gambling sites – meaning even higher profits. If you are a casino affiliate, the future looks bright indeed, regardless of whether you get acquired for a huge sum of money,or run one of the big networks.
