iGaming Affiliates Losing Clout in Regulated Markets

The online gambling landscape is shifting, and this directly impacts the role of affiliates. Once indispensable partners, they now face altered power dynamics, especially in strictly regulated markets. Operators' reliance on external publishers is decreasing, driven by structural changes.

Regulations and the need to protect licenses force operators to exert more control over content and marketing methods. This leads to a re-evaluation of collaborations, where affiliates can still be important, but only if they deliver unique added value.

Numbers and facts

Operators view affiliates not just as a channel but also as a risk. In case of advertising guideline violations, such as misleading bonuses or improperly targeted campaigns, the license holder is ultimately liable. Great Britain provides a clear example: The Gambling Commission requires licensees to ensure that third parties performing activities connected with the licensed business comply with relevant license conditions and codes of practice. The Advertising Standards Authority (ASA) holds a similar stance. Even if the affiliate creates the content, the operator bears the responsibility.

The Danish Gambling Authority, Spillemyndigheden, even warned in 2025 about money laundering risks with certain affiliate arrangements. Models where remuneration is linked to the size of a customer's first deposit, and the referred player does not return, are particularly critical. This means that registrations and first-time deposits can no longer be evaluated solely as marketing results. Compliance teams examine payment behaviors, sources of funds, bonus abuse, and unusual referral patterns. A broader acquisition mix, including paid search, permissible digital advertising, sponsorship, and CRM, reduces dependence on single channels.

Taxation in The Hague has increased to 37.8 percent from 2026. This policy significantly impacts channelization. Players seek the best deals, affiliates follow traffic, and investors chase cash.

Background

The operators' display of power is most evident in affiliate agreements. These define what constitutes a new customer, how attribution works, and which deductions are applied before commission calculation. The operator also determines the fulfillment of verification, deposit, wagering, and activity requirements. A 40 percent revenue-share offer might seem generous at first glance. However, the calculation of Net Gaming Revenue (NGR) can be significantly reduced by bonuses, taxes, payment costs, chargebacks, fraud, and platform fees. Negative carryover can extend a poor month into the next, while cross-product rules determine whether sportsbook and casino results are combined.

"Forex is more difficult to trade than binary options, where you just make your bet and wait for the expiry," says Jeff Saunders, head of affiliates at MarketsWorld, a binary broker regulated by the Isle of Man Gambling Supervision Commission. This underlines how strongly rules and product complexity influence marketing strategies and thus the role of affiliates.

In unregulated markets, the situation is different. Where no local license is required, operators can use channels that would otherwise be unavailable. Offshore operators are often more reliant on affiliates because they lack access to traditional advertising channels available in regulated markets. This increases the value of affiliates who already control an audience, be it through specialized search engine optimization, a trusted editorial brand, precise customer data, or a unique audience. This dependence can lead to faster negotiations and more flexible commercial terms. However, the risk for the affiliate increases, as offshore programs are often associated with payment delays, sudden closures, and unclear ownership structures.

Why it matters for German players

For German players, this development means a continuous consolidation of the market towards licensed and regulated offerings. The German State Treaty on Gambling 2021 (GlüStV 2021) and the Joint Gambling Authority of the Federal States (GGL) play a decisive role here. Players should exclusively stick to casinos listed on the GGL whitelist. These casinos are subject to strict requirements, such as the 1 Euro per spin betting limit for slot machines and a monthly deposit limit of 1,000 Euro, which is monitored via the central self-exclusion system LUGAS. Information on bonuses and promotions from licensed operators is more transparent. They must be clear and comprehensible to avoid violating strict advertising guidelines. This protects players from misleading offers. Unregulated markets often offer higher bonuses and seemingly better payout ratios. However, this comes at the expense of player protection and legal certainty. Players should always check the legality of an offer and appreciate the benefits of German regulation. These include self-limitation tools and connection to the self-exclusion file. The channeling of players into the legal market is also an important step to combat tax evasion and crime.

What it means for GGL-licensed casinos

For GGL-licensed casinos, the shift in affiliate marketing entails adapting their strategies. They must ensure that their affiliate partners fully understand and comply with the complex compliance requirements of GlüStV 2021. This includes not only the correct presentation of bonuses and promotions but also adherence to advertising restrictions. For instance, minors and self-excluded players must not be reached. Through LUGAS, operators can ensure that deposit limits and play breaks are observed. This significantly increases transparency and player protection. GGL-licensed casinos must design their affiliate contracts more precisely and establish clear definitions for new customers, attribution, and commission calculations to avoid future disputes. An affiliate partner who operates compliantly and delivers measurable, high-quality traffic that also meets the specific requirements of the German market will continue to be valuable. Operators' willingness to invest in data analysis and their own marketing channels will further strengthen. This will reduce their dependence on individual affiliates.

"The regulation in the forex business is very uncertain and likely to change in the near future and get a lot stricter," says Vincenzo Roselli, head of affiliate marketing at ETX Capital, a broker regulated by the UK's Financial Conduct Authority. This shows that even in other financial sectors, regulation is increasing, and affiliates everywhere must adapt.

Ultimately, affiliates must prove their value by positioning themselves as indispensable partners. This is achieved by offering expertise in specialized search engine optimization, a trusted brand, precise customer data, or a unique audience. A good understanding and compliance with local advertising restrictions reduce operational risk for operators. This strengthens their position compared to competitors who only provide generic traffic.