The Massachusetts Gaming Commission came to something of a compromise Monday despite voting unanimously to prohibit sports betting operators from making revenue-share agreements with affiliate marketers. The commission did agree to allow “cost per action” (CPA) partnerships, which means affiliates and operators will be able to continue some deals already in place in the state.
Last month, the MGC granted a waiver allowing operators to partner with affiliates for both revenue-share and CPA deals despite the commission having previously passed a regulation that banned such partnerships. Commissioners were concerned that such agreements would allow for excessive sportsbook advertising, but after operators and affiliates argued that the deals created a pathway for responsible gambling advertising and addressed limited audiences that wanted information about sports betting, the commission waived the ban through April 14.
Monday’s decision paves the way for affiliates — including , which is owed by parent company Better Collective — to partner with operators that pay the affiliates a set rate every time a consumer clicks through on a link to an operator’s platform. Such deals are prevalent across the country, and operators told the MGC in February that they get about 30% of sign-ups from affiliate marketers.
Will small operators be hurt?
The new regulation puts the kibosh on revenue-sharing deals, which may be more costly over time but which can be more attractive to smaller operators as a way to control start-up costs. In a revenue-sharing deal, affiliates are paid a percentage of net revenue generated by the operator from a consumer whom the affiliate sends to an operator. A FanDuel representative in February told the MGC that 90% of its affiliate deals are CPAs.