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New Jersey Online Sports Betting Affiliate Program CPA, Revenue Share Models Unbearable

Written by:
C Costigan
Published on:
Jan/01/2019
  • Both the rev share and CPA affiliate programs require one to apply for a license in NJ

  • The licensing fee is a cool $5000

  • Promotion of offshore sportsbooks on pages that feature NJ-based books is a no-no

  • Geo-targetting demands by operators are short-sighted considering anyone can register outside state

Joining an online sports betting affiliate program in the state of New Jersey has never been, well, harder.

It requires applying for a vendor's license in the state.  You will need to provide regulators with your entire life story (otherwise known as "giving blood"), remove all offshore gambling links from pages where the NJ-based online sportsbooks are to appear and, drum roll please, fork over $5000 (for the revenue share model).  And, yes, it lapses after a period of time, so you'll need to keep paying up.

The current CPA for online casinos in New Jersey is a shocking $600 plus.  That sounds great until one realizes it's tough getting customers when a handful of big money affiliate firms have already cornered the market.

First off, nobody in their right mind is going to put a halt to the enormous revenue stream coming in from offshore sports betting affiliate programs simply so they can get a small piece of the already saturated NJ sports betting pie.

The folks from LegalSportsReport we suspect have the lion's share of the market already, and there are no indicators we can see (i.e. tracking links) that they are even engaging in any revenue sharing deals.

In the end, for New Jersey regulators to demand website owners stop promotion of NJ-based sportsbooks on pages that also advertise offshore books is a bit far-reaching considering that sites like Gambling911.com regularly covers the likes of FanDuel, Draftkings, et al. New Jersey products and news while doing the same in regard to the worldwide betting market.

The difficulties may lie more with the companies themselves than with the regulators.

For example, none of the NJ-based sportsbooks wish to be promoted outside of the state's borders since bets can only be placed in New Jersey.

This makes zero sense.  New Jersey doesn't have a media market of its own per se outside of a small number of local television and radio stations along with the local newspapers.  The main television markets originate from either New York City or Philadelphia.  The NYC market covers a slice of Southwest Connecticut.  Neither New York or Connecticut allow sports wagering at the time of this publication.  Yet if you advertise sports betting on the likes of WCBS, WNBC, WABC and so on, those in NY and CT exposed to such ads are bound to make their way over to New Jersey's sportsbooks to place bets. 

Likewise, anyone from anywhere in the U.S. can register with a New Jersey-based sportsbook via the app. They just can't bet for real money unless they are physically located in New Jersey.  So let's say Joe Smith from Kansas City will be visiting the Garden State the weekend of the Super Bowl.  In a perfect world he can register his account prior to arriving at Newark Liberty Airport and actually start placing bets on the big game before he reaches the gate.

The problem with this scenario for affiliates looking to broaden their money making efforts with NJ sportsbook affiliate programs beyond the state's borders is that operators have tended to insist on geo-targetting online.  This means that website banners for the New Jersey sportsbooks will only appear to those viewing in that state (not Kansas City).  One possible out is that geo-targetting cannot be done with content links.

The amount of traffic for New Jersey related sports betting is way too insane to describe here, much of it comes from the surrounding region while a good chunk originates from states well beyond NJ. 

The good news for anyone wanting to dip their toes in the New Jersey online sports betting affiliate space is that many of the operators offer an enticing $200 to $300 CPA (Cost Per Acquisition), which could ultimately offset that $5000 licensing fee.  But the amount affiliates stand to lose by following the rules as they are written can be illustrated in the overwhelming - we mean nonexistent - demand to participate in these affiliate programs.

In the end these wagering firms may just want to settle on mainstream media deals at flat fees where their advertisements appear on networks that feature television shows touting the lines of offshore operators.

- Chris Costigan, Gambling911.com Publisher

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