History of US Online Gambling Legalisation and Its Impact on Affiliates
The Evolution of US Online Gambling Legalisation
In late 2011, the legal landscape for online gambling in the United States began to change. The Department of Justice re-evaluated its interpretation of the Interstate Wire Act of 1961, opening the door for online casinos. This period marked the beginning of a new era, with significant transformations in the industry.
Challenges for Offshore Operators
Initially, offshore operators continued to serve the US market, despite restrictions. Payment processing was fraught with challenges, compounded by the Unlawful Internet Gambling Enforcement Act (UIEGA) of 2006, which targeted payment systems. The infamous Black Friday incident, where the FBI seized domains of several iGaming operators, highlighted the legal risks involved.
The Growth of a Regulated Market
With gradual state-by-state legalisation of online casinos from 2012 and the Supreme Court ruling in 2018 on the Professional and Amateur Sports Protection Act (PASPA), sports betting also gained acceptance. However, the structured nature of the regulated market proved difficult for affiliates. Many found it impossible to transition, significantly altering the competitive landscape.
Impact on Affiliates
The journey wasn't all positive for affiliates. None of the known affiliates operating in the pre-regulation era survived the transition to a regulated market intact. Companies like Catena Media, once successful, now struggle within the regulatory framework. High expectations from media and advertising channels did not translate into affiliate success, as regulations imposed complex requirements.
Comparative Insights from Other Markets
Attempts to adapt to regulated markets in other regions, such as Spain, showed similar challenges. Regulated products differed substantially, with more bureaucratic procedures and stringent player protection measures. Affiliates faced quota requirements and revenue share complexities that made traditional models unviable.
Source: reg2bet Telegram
