The Regulated Poker Affiliate Dilemma

US Gaming 1US Poker – Online poker is now regulated in three states.  Affiliate opportunities are available in Nevada and New Jersey.  The leader in affiliate programs so far is New Jersey.

Becoming a regulated poker affiliate is not as easy as becoming one for an offshore site.  Unregulated sites have a potential affiliate complete a web form.  Some have a vetting process, while most will immediately give affiliates links that will track players.

Regulated affiliates must go through an application process.  New Jersey affiliates must apply for a vendor’s license before being allowed to market sites.  Most operators help with this process.  Nevada also has a licensing requirement for affiliates.

Affiliates have been a controversial topic for the entire existence of online poker.  Sites often recognize the need to have websites help refer traffic for a fee.  This is common in online marketing as operators need neutral content creators to help draw niche traffic.  An affiliate receives a percentage of the revenue a player produces or a one-time commission when a player meets a certain threshold often tied to a deposit and rake amount.

This model has been abused in the online poker industry over the years, especially on networks.  Some affiliates will play network skins against each other.  This is done when an affiliate threatens to move players to a different skin if commission is not increased.  Another activity some affiliates participate in is under-the-table or “illegal” rakeback.  This is when an affiliate incentivizes players through a kickback based on rake.  This action may even be condoned by a room on a network, while explicitly disallowed by a network or affiliate agreement.

Poaching is a problem at some international networks.  An affiliate might approach a player that is known to put in a high volume of play at a skin and offer him a deal at a different site on the same network.  An affiliate might offer these types of players under-the-table rakeback that violates network rules, sometimes with the blessing of the skins.  This hurts the network in several ways.

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