LETTER FROM THE DIRECTOR Social Networking and the iGaming 8 Landscape elcome to Number 13! It’s one of our Social networking has hit the iGaming world, and W biggest issues ever, with in-depth Adam van Vlaardingen wants you to recognize coverage and expert commentary on a broad and reap the rewards. spectrum of industry-related developments.
In our cover story, Dan Fleyshman of Victory Poker speaks candidly with Aaron Todd about Out and About in the new site. He tells Aaron that he’s not 12 Australia and Amsterdam expecting VP to become the next Full Tilt or Cameras clicked overtime to bring us excellent PokerStars, but it’s hard to believe that he’ll rest images from iGB Down Under and CAC until he actually makes that happen. By the way, whatever you do when you’re in Las Vegas, Amsterdam. make sure you never accept an invitation from Blitz Bilzerian to drop by his condo for a visit. GPWA Speaking of poker, Jeremy Enke has a thing The GPWA Times Magazine World Executive Director: or two to share with us about the importance 20 Cup Round Table Michael Corfman of not taking shortcuts when creating a poker Gary Trask picks up some good marketing ideas Marketing Director: forum. Players, he tells us, are quite adept at from two online sports-betting experts. Andrea Mullaney distinguishing between a forum with useful, Program Manager: original content and one that looks like a run- Steven Corfman of-the-mill banner farm. Do it right, and your Program Coordinator: patience and hard work will pay off. Nancy Troy Cover Story: The Face of Things to Other stories you’ll want to read include Come GPWA Times Magazine Gary Trask’s look at the current state of 38 Aaron Todd takes us along as Dan Fleyshman Managing Editor: Online Bingo and his discussion with Matija Vorgic and Dean Leyland on how to promote gives him an exclusive tour of the newly launched Vin Narayanan Victory Poker. Senior Editor: the World Cup, Adam van Vlaardingen’s Aaron Todd suggestions for building player trust and Associate Editor: brand recognition through social networking, the eye-opening prognostications of four Dan Igo industry heavyweights, Vin Narayanan’s report ALSO IN THIS ISSUE Copy Chief: on changes in gaming legislation in France Bill Riley and the U.K., some very good affiliate and 18 Building a Sucessful Online Poker Designer: affiliate manager interviews, a major addition Community George Choi to the Wall of Shame and our photo gallery featuring highlights of the GPWA’s recent trips 24 Online Bingo – What a Difference Advertising to Australia and Holland for a couple of very a Year Makes To advertise in the good conferences. GPWA Times, please 26 Gazing into the Crystal Ball e-mail: [email protected] This issue will be distributed to all attendees of the iGaming Super Show in Prague at the 70 France and the U.K Take a Second Subscriptions end of May. We’ll be there, and we’re looking Look at Their Gambling Laws To subscribe to the forward to seeing you there too! GPWA Times, visit gpwa.org/magazine. Finally, a reminder: if you’re not receiving the It’s FREE! GPWA Times in the mail, stop whatever you’re doing, visit gpwa.org/magazine and start your DEPARTMENTS free subscription now. You’ll be glad you did. 6 By the Numbers
Sincerely, 7 Cartoon Caption Contest 22 Event Calendar 48 GPWA Sponsors 52 Affiliate Interview Series ISSN 1941-9872 Michael A. Corfman GPWA Executive Director 60 APCW’s Wall of Shame 62 Affiliate Manager Interviews Table of Contents
BY THE NUMBERS
€18.7 billion The amount of regulated e-gaming and betting activities in Italy, according to eGaming Review.
€242,000 The amount of money four 32,000 armed robbers reportedly stole from an EPT event in The number of jobs that Berlin. would be created if the United States legalized online gambling, according to a study by H2 Gambling Capital. €60 million $543 million $200 million The amount of a sponsorship The amount in fines Daniel The tax revenue that could deal that A. C. Milan signed Tzvetkoff faces after being be generated in Florida with Dubai’s Emirates arrested for processing by legalizing online poker, Airlines. It was previously online gambling transactions according to State Rep. sponsored by bwin. for Americans through his Joseph Abruzzo payment processor Intabill. (D-Wellington). $75 million $1.4 billion The amount of money Tiger 53 The estimated annual Woods was offered by Paddy revenue of PokerStars, The age of EOG.com owner Power in a sponsorship deal. according to an article on Kenneth Weitzner, who He declined. Forbes.com. reportedly committed suicide in Virginia in April. 30% $223,420 $8.4 million The percentage of American adults who visited a land- The amount won on a The amount Everest Poker based casino in 2009, progressive slot machine at was supposed to pay the according to a report from Win A Day Casino, its largest World Series of Poker for Mintel. win ever. being the tournament’s $500,000 sponsor in 2010. Everest is suing Harrah’s, claiming 12% The amount Annie Duke €1,000 a breach of contract when won by claiming the WSOP broadcasts in France The percentage of American National Heads-Up Poker The personal bounty offered displayed Full Tilt Poker adults who visited an online Championship in March. by Bodog Poker Network logos on the tables. casino in 2009, according to CEO Patrik Selin to whoever the same report. knocked him out of the EPT €33.4 million Grand Final in Monaco. 290,000 8 The amount Playtech paid The number of players that to acquire Virtue Fusion, 250 million the Entraction online poker The number of teams in the with an additional payment network gets access to after 20-team English Premier of €8.1 million dependent The milestone poker hand reaching an agreement with League sponsored by online on performance in the first Sky Poker is expected to Betsson. gambling companies. quarter of 2011. reach in the near future.
By the Numbers
Caption Contest
One of the nice things about playing blackjack online is when you lose, there isn’t an audience (you hope) to watch you go down in defeat. But when you’re in a live casino, not only are there people watching you lose money, but you also have to watch others win. And that’s exactly the situation our affiliate finds himself in here. What’s he thinking? What’s his fellow player thinking? That’s for you to decide!
Go to the forums at gpwa.org and submit your caption for this cartoon. We’ll take a look at all the entries and pick the one we think is the funniest. The winner will be announced in our next issue and will receive a free copy of the iGaming Business Directory. Drawings by Ben Riley, www.ben-riley.com
Last issue’s cartoon The Winner is . . .
“You better be booking a cruise because this is NOT how I expected us to spend our wedding anniversary!” – my3sons
Congratulations to “my3sons,” who wins a free iGaming Business Directory.
And the runners up . . .
“OK. So that’s englandvsusaworldc- “Does he have to place his sports bet upliveinplay.com bought. Just gotta knock online now?! He may win on this game, up a site before the game finishes and I but the odds of him winning tonight are In our last issue, we asked for a reckon that’s a nice little niche” – The- growing very slim!” – ladypress caption for the cartoon pictured BoyMitchell above, where an affiliate is in a “Never again. I thought these GPWA room with his computer out while “There go Chips and Pompy fighting over people partied. Next time my date shows everyone else is watching England whether it is called football or soccer up with a laptop he’s getting kicked in his outplay the United States in the again!” – Chips processor!” – UltimatePokerBonus World Cup. “Hmmmm, if 24 players each deposit “Didn’t you bet on a 10-0 victory for the $500 and my rev share is 30%...woo hoo... USA?” – cat GREAT GAME!!!” – casinobonusrus
Caption Contest Social networking and the iGaming landscape
By Adam van Vlaardingen but requires a significant investment of on-the-go through the mobile interface of numerous resources to effectively and ef- Twitter. Social networking is no longer just a pre- ficiently implement. This investment of teen phenomenon for updating each oth- resources is what will truly impact your er’s current favorite MTV music videos; desired results, and the reality is that Retention Tool it’s part of our daily lives. Social network- these efforts are meant to be shared. ing has also hit the iGaming world, and By developing a personal dialogue, op- the iGaming market stands to reap the The development of a following requires erators and affiliates are able to increase rewards of this largely untapped, effective the involvement of a group of people. In rapport with their target markets. This in communication vehicle. Yet, even with so order to inject personality, promote dis- turn leads to an increase in trust, which much hype surrounding the term “social cussion and receive feedback, a group of ultimately leads to retention. But reten- media,” there remain large contingents of participants needs to manage the dialogue tion requires consistent care and atten- operators and affiliates who are reluctant and offer more personal responses. This tion. Just like a relationship with a friend, to embrace the medium. long-term commitment will be a major social networking creates a bond that re- factor in producing long-term results. quires regular communication in order to retain strong ties among operator, affiliate Out with the old and player. In this vein, it is important to What Have We Learned? remain consistent in your communica- tion, responding in a timely manner to en- and in with the new We are always learning new things about courage a flow of dialogue and to sustain social networking as the medium is still interest. There are several reasons to operate on- growing in scope and scale. It is not an line social networks as a principal source exact science, and that is what makes it of communication. so attractive to affiliates and operators CRM Tool who want to expand their communica- By transforming consumers into content- tion scope. What we have learned so far is By openly encouraging feedback, you will producers, operators and affiliates alike that social networking has a tremendous undoubtedly encounter some negative are able to leverage organic content and impact that is far-reaching. Depending on criticism. The important thing to remem- develop brand awareness on a mass scale. which form of social networking is being ber is that if people are willing to bring By developing a feedback loop, not only used, it can be effectively implemented as up something negative, they are actively are you encouraging opinion sharing, but a variety of tools. thinking of your brand and are looking you are increasing the dialogue surround- for a solution. By monitoring this feed- ing your brand. Promoting discussion and back, responding with immediacy and getting consumers involved will help build Acquisition Tool addressing the issue, you are actively sup- trust and recognition of your brand. porting your customers and developing For operators searching for new affiliates, your relationship with them. Eliminating Social networking not only extends your or affiliates seeking new players, vehicles the “cookie cutter” response and adding a reach, it also has an advantage in potential like Twitter and Facebook can be excel- personal touch is simply one way to regain immediacy of impact. An operator or af- lent ways to acquire additional business. the trust of customers that may have been filiate looking for feedback on a potential Effectively utilizing these mediums lets lost due to something entirely avoidable. idea will receive information significantly you avoid the “salesy” approach and al- faster through social networking medi- lows you to focus on the appropriate tar- Although it may seem daunting at first, ums than through more traditional forms gets for your message. You can develop your involvement with social media will of communication such as e-mail. a Facebook Fan Page for your brand and help support your marketing efforts while promote offerings through it to gain ac- opening up new opportunities that are Social networking is a long-term project cess to a pool of individuals who prefer presented through the use of these me- with long-term impact. Involvement in this medium, or you can Tweet the latest dia. According to a Pew Research Center social media has a tremendous upside, promotion and gain the attention of users survey of individuals 18 years or older, al-
Social Networking and the iGaming Landscape
most half (46 percent) said they get their management and customer retention will ability to host a discussion, create a fan news from four to six news platforms each be strong enough to withstand the flashy page and become Google-indexed. How- day. Mainstream conventional media are attractiveness of a rival skyscraper banner ever, it has the potential to work against declining in effectiveness and this has led or sign-up bonus. you if your discussion takes a less-than- to an upsurge in communicating directly desirable route. with the end-user. Through the develop- Another major lesson is that different ment of this relationship, the potential to forms of social media have different func- When managed correctly, an open discus- gain valuable insight into feelings about tions, and thus can be utilized in different sion can have a wealth of potential. By and opinions of your products and brands ways to efficiently leverage their related encouraging dialogue and building recep- is vast. It really doesn’t get any better than strengths while minimizing the impact of tiveness, you are fundamentally building this—being able to obtain a mountain of their weaknesses. confidence in your brand. Your affiliate feedback and potential ideas by simply marketing software should offer tracking paying attention to your consumers and Take for example the Twitter vs. Facebook and monitoring abilities to examine stats, addressing their concerns with genuine conundrum. Where Twitter excels in its which will help you gain insight into your reactions. immediacy, convenience and targeting, it target market’s opinions and their recep- is lacking in that it must deliver anything tiveness. Any perceived success must be meaningful in no more than 140 char- measured in order to prove the worth of Brand management tool acters. It has the valuable ability to help your investment, and such statistics can direct your target market to a specific be invaluable in helping you determine Ultimately, by working on your relation- landing page, but lacks the scale of a char- the future course of your involvement. ships and being supportive, you are in- acter-unrestricted post. To use it effec- creasing the perceived value of your brand. tively, you have to follow the right people, For example, when your software can Interconnectivity is a driving force behind have the right people follow you, and be track the performance of a social media social networking and it all leads to brand able to optimize 140 characters to get your campaign, the benefits are that you are management. point across in a message that is interest- able to determine the relative success of ing and relevant to your audience. different campaigns, while comparing ef- The results of such efforts will be long- fectiveness of certain keywords and veri- lasting; however, they may appear to be Facebook, on the other hand, delivers a fying the click-through rates as well as a intangible at first. The gambling space is a wealth of users (a major increase in scale variety of useful stats. By running concur- saturated market. By effectively using the of communication), offers a more personal rent campaigns, being able to tweak them aforementioned tools, your relationship form of communication and provides the on-the-go and ultimately having the abili-
Social Networking and the iGaming Landscape 10
ty to determine which are more successful, to fully realize the strengths that each has If there is one point to take away from the potential not only to learn more about to offer. By utilizing these effectively, you this, it is that social media are a fantastic your target markets, but also to effectively will gain diverse levels of feedback, as support vehicle for connecting and com- communicate with them, is what will help various markets experience social media municating with your audience. They of- propel you to social media success. in different ways. By involving yourself fer the opportunity to build relationships in key channels you will remain fresh in with end-users (players) and promoters your target markets’ minds, and this will (affiliates) while developing a personal- increase your brand recognition. ity associated with your program (opera- Keys to Success tors). It is important to remember that social media are a very effective vehicle Have a strategy Align social media goals and are best suited to be accompanied by other marketing efforts. Standing Involvement in social networking is a with business goals alone, they can be a powerful marketing two-way street. It requires a regularity of tool, but to be utilized most effectively, a Review your business goals and expecta- communication and investment, while fo- multi-platform approach is usually best. tions, and take the opportunity to align cusing on a defined, attainable goal. De- With a variety of marketing efforts sup- your social media agenda and goals to termining how your objectives will alter porting one another – consistency, focus support your bottom line. This multi-fac- your relationships with your customers is and social networking – the potential for eted approach toward a shared objective vital to your strategy. If your business goal success is greatly improved. is a great way to remain focused and on is to gain x amount of new business dur- course. Social media vehicles can eas- ing the year, and you have aligned your ily become distractions if topics sway off social media goal with it, then you must course, so it is important to remember have a strategy in place to carry out the what objectives have been set. necessary tasks. Through a combination of social networking vehicles, your com- munication will be offered to the digital world. If there is no strategy behind it, then monitoring its performance serves “For operators searching no purpose. for new affiliates, or affiliates seeking to Understand the process garner new players, Like any undertaking, there is a process vehicles like Twitter by which relative success is measured. and Facebook can be Realizing a large financial impact after excellent ways to acquire the first three months of investment is improbable. The initial investment of additional business.” time, people and funds is followed by sev- eral stages before any kind of financial impact can be determined. Once action is taken, and a reaction is established, a non-financial impact will occur. This impact will be the tipping point for the subsequent stage: the financial impact. Non-financial impact includes a number of things such as increased brand percep- tion, increased Web site visitors and blog and forum comments. These will all affect your ROI in the long-run, as you increase your conversion rate by using the various aforementioned tools. Immerse yourself Adam van Vlaardingen Adam is an affiliate manager at Income Access. In key channels He has an interest in mobile marketing, social networking and the future of the affiliate market- It is useful to maximize your involvement ing industry. He resides and works in Montreal. in several forms of social media in order
Social Networking and the iGaming Landscape 10 Out and About in and Amsterdam A ustralia The GPWA made its way to Australia and the Netherlands in the past few months, attending iGB Down Under and CAC Amsterdam. As usual, there was plenty of time for networking and gossip about industry news, but there was also plenty of time to socialize at parties as well! -
Special thanks to Renée Mate (Rewards Affiliates) and Kiera Goymour (iGB) for providing the photos from Austra lia, while Debbee Silverman (Casino City) provided the photos from Amsterdam.
If you weren’t able to make it to one of these conferences, we hope to see you at an upcoming conference soon!
Check the calendar on page ?? and make your plans to party with the GPWA! The GPWA’s Steven Corfman (left) enjoys a drink with some friends in Australia. (courtesy of Kiera Goymour)
Image: Susie B / FreeDigitalPhotos.net
Image: Michelle Meiklejohn FreeDigitalPhotos.net 13
The GPWA’s Steven Corfman (left) enjoys a drink with some friends in Australia. (courtesy of Kiera Goymour)
Schalk van der Sandt from Canbet (right) and Rudi from Rewards Affiliates (back) ham it up for the camera. (courtesy of Kiera Goymour)
Hilary Stovall (Slotland Affiliates) and Renee Mate (Rewards Affiliates) enjoying a drink at The Loft.
Delegate badges await affiliates at iGB Down Under. Affiliates hard at work at an iGB Down Under session. (courtesy of Kiera Goymour) (courtesy of Kiera Goymour) 14
The GPWA’s Steven Corfman and Renee share a laugh.
iGB’s Shona ODonnell and Kiera Goymour take in some Aussie sun at the Rewards Affiliates Wind Down BBQ and Beach Volleyball at Bronte Beach. (courtesy of Renée Maté)
Grant Laubscher and Tarryn Ward from Referback. (courtesy of Kiera Goymour)
Yaniv Klein from Rewards Affiliates cooks some meat (again!) for the Rewards Affiliates Wind Down BBQ. (courtesy of Renée Maté)
Josh and his friends chilling at the BBQ at Bronte Beach. (courtesy of Renée Maté)
Salvador and Dave Casey (Casino Rewards/Rewards Affiliates) enjoy some awesome food at Bronte Beach. (courtesy of Renée Maté) 15
Gustav Lipzcsey and Erik Hellqvist (Unibet) do some networking while lounging in leather chairs. (courtesy of Kiera Goymour)
iGB’s Shona ODonnell and Kiera Goymour take in some Aussie sun at the Rewards Affiliates Wind Down BBQ and Beach Volleyball at Bronte Beach. (courtesy of Renée Maté)
Grant Laubscher and Tarryn Ward from Referback. (courtesy of Kiera Goymour)
Shona, Frank and Kiera out on the town at The Loft. (courtesy of Renée Maté)
Josh and his friends chilling at the BBQ at Bronte Beach. (courtesy of Renée Maté)
Shona, Helene (Rewards Affiliates), Renée and Kiera pose for the camera.
(courtesy of Kiera Goymour)
Out and About in Australia and Amsterdam Beacon shows Alex Pratt (iGaming Business) some love
Bryan Bailey (Casinomeister), Roman Humpelstetter (Intertops), and GPWA member Dave Sawyer enjoy a beverage
Debbee Silverman (Casino City), Beal, and JTodd share a laugh
GPWA Executive Director Michael Corfman at the CWC dinner JTodd gets frisky with Gary Beal in this group shot
(Photos courtesy of Debbee Silverman, Casino City)
Out and About in Australia and Amsterdam JTodd gets frisky with Gary Beal in this group shot 18 19 Building a Successful Online Poker Community
By Jeremy Enke community. The interface for your mem- So how do you grow a forum or commu- bers, moderators and administrators is nity within the online poker market? Be- uilding a successful forum or online by far the most user-friendly platform on low are a few pointers: community can be one of the most the market. Bchallenging and difficult things for Stand out & be different – If your an Internet marketer to accomplish. In Regardless of the forum software you poker forum is the same as the several the poker affiliate market, it is even more choose, as a poker affiliate you must real- hundred others on the Internet, what difficult due to the number of established ize that launching an online poker forum would really entice your traffic to sign poker forums that are already successful. will not create an immediate cash cow. up and post? My suggestion would be to As Internet marketers continue to go so- This is actually a very common miscon- focus on some sort of niche in the poker cial, community building remains a hot ception among many poker affiliates. affiliate market. topic. In this article I hope to share some Sure, you are going to begin building a da- tips and advice on the best way to launch tabase of poker players, but you shouldn’t Seed content – Visitors are not going to a successful poker community. expect to profit from these members until just show up and post of their own free will. As the admin of the forum With any forum or community, you need to plant “seed content” first impressions are critical. I that is either very interesting or strongly suggest investing some even controversial. Give your money in a good platform and traffic and random Web surfers a launching with a nice design. “Regardless of the forum reason to sign up and post in your When deciding to build a forum, community. you have several software options software you choose, as a to choose from. The five most Rules & moderation – If you popular forum software plat- poker affiliate you must are starting a forum, treat it like forms currently on the market a full-time job. Bring on great are vBulletin, phpBB, YaBB, IVB moderators who can help create and SMF. realize that launching an seed content, reply to posts and welcome new guests. Most im- Many webmasters may disagree, online poker forum will portantly though, as you begin to but in my opinion, for operating grow you have to make sure that a poker forum there is no better not create an immediate all spam is deleted in a timely software out there than vBulletin. fashion. Even one spam post can One tremendous benefit of going cash cow.” give a terrible first impression with vBulletin is that many poker and cause people to immediately players who post in forums are exit the site. already familiar with the inter- face. Many of the largest poker MOPFI – This is an old-school forums in the world are already using this several months down the road. If there is sales principle, but it is very effective platform. Launching with vBulletin will one golden rule you remember from this when growing a forum. MOPFI stands for undoubtedly increase your sign-ups and article, it should be this: Poker players do Make Other People Feel Important. If you activity among new members. not sign up at forums with the intention are running the forums, practice MOPFI to click on your banners and make you on a regular basis with your members and Although a vBulletin license can cost you money; they sign up to become part of a staff. When you recognize your members, a couple hundred dollars per forum, it is community where they can interact with you will be amazed at how quickly they worth every penny. Unlike much of the other poker players. develop loyalty to your community. free forum software out there, vBulletin is extremely secure as long as you maintain This is one of the fundamental mistakes Start small & grow – Nothing is more your updates. Additionally, vBulletin has poker affiliates make when trying to start of a turnoff than arriving at a new poker hundreds of great plug-ins and add-ons or grow an online forum. forum and seeing 50-odd forums and that will allow you to truly customize your flashing banners embedded there. Most
Building a Successful Online Poker Community 18 19
of the time these forums either have never itors and encourage them to leave through been posted in, or haven’t been posted in your links, communities your goal is to for months. Start small and keep all your get your visitors to act and to spend time members’ posts confined to a small area. on your site. Because of this, monetizing Motion creates emotion! When members poker affiliate forums is more difficult and visitors see activity in a few forums, than most would suspect. Think about the they will be much more likely to get in- online communities or social networks volved. Having too many forums and you visit daily. You probably go there to be categories is extremely overwhelming for social, read threads, send PMs and catch new members. Keep it simple. up with others in the community, and not to immediately click on affiliate links and Another important aspect of running a leave. forum is that someone with a strong per- sonality has to take on the leadership role. Think about this: When was the last time Whether it is you, a moderator, or you and you clicked an ad at Facebook, MySpace a few moderators, somebody has to take or even your favorite forum? Probably on the position of leadership and direc- never. Poker affiliates must realize that tion in the community. The leader or lead- banners and text links are not the road to ers need to be active and posting every riches when running a forum. single day. Strong leadership and having Jermy Enke the leaders active are key ingredients for In order to profit with an online commu- growing a successful community. nity, you have to be willing to think out- Jeremy Enke is the CEO side the box a little bit and leverage the re- of Poker Affliate Listings (PokerAffiliateListings.com). Once you establish a leadership role with lationships you have developed with your Jeremy has dedicated over your members, you can begin to monetize members. Relationships are key when it six years to the poker affiliate the community. The way to monetize your comes to converting these members to market, with an overall mission forum members is NOT simply getting profits. The bottom line is unless you are throughout this time of helping them to click on random links and ban- willing to form relationships with hun- affiliate marketers reach their ners. It is by engaging these members by dreds of forum members, you will make full potential and become more hosting tournaments, poker leagues and more money running an online portal that successful in this terrific industry. special promotions. Another way to mon- ranks well in the search engines. Jeremy has been involved in the etize your members is by offering some poker affiliate industry since sort of incentive such as rakeback, rake Gauging the success of an online com- 2003. Founding the world’s races or a special deposit bonus. munity can be difficult, especially when largest poker affiliate community, starting out. Just because your forum followed by the world’s largest There are two other important points isn’t profitable doesn’t necessarily mean poker affiliate network, Jeremy that are essential when building an online it isn’t successful. Building a successful likes to refer to himself as a community. community is a marathon, not a sprint. self-proclaimed Certified Baller. One way that I have always measured Jeremy’s sense of humor and 1. Compelling content is king – Ini- success in online communities is when I entrepreneurial spirit are second to none. tially when starting a forum, you have to see members getting to personally know give people a reason to sign up and post. other members. If your members are be- Between you and your moderators, make coming friends, sharing PMs or speaking sure that the posts and content in your offline, then you know you have created a forum are not the same old boring hand community that has loads of potential for histories. Also make sure that the forum is years to come. always active. If that means you and your moderators have to participate in conver- Building a successful online poker com- sations with each other all day, then by all munity takes a lot of patience and hard means do it. One thing I do not suggest, work. However, once you have accom- however, is utilizing “pay per post” servic- plished this, the fruits of your labor and the es to get your forum active. These services friendships you make can last throughout seldom result in good content and will ac- your entire poker affiliate career. tually devalue your community.
2. Forum banner blindness – There is a reason why many social networks and online communities such as Facebook have a hard time making a profit. Unlike mini-sites where your goal is to attract vis-
Building a Successful Online Poker Community 20 21
The GPWA Times Magazine World Cup Round Table
By Gary Trask
very four years, the World Cup Matija Vorgic – otherwise known as Here is how our conversation went: is one of the most anticipated “buyonaut” on the GPWA forums – is a E events on the planet, and this sports-betting affiliate who operates the As far as events that help generate new year’s tournament will be no differ- sites Bet2win.eu.com, Kladionicasport.com customers and gross amount of wagers, ent. Beginning June 11, the quest for and Freebets.uk.com. The 38-year-old is where does the World Cup stand? 32 nations to capture the coveted title based in Dubai and has worked in the af- will begin and the world will be watch- filiate marketing industry for the last four Matija: The World Cup is the biggest ing…literally. years. The other member of our impromptu event in football, worldwide. Even peo- ple that usually don’t follow football get “World Cup Round Table” is Dean Leyland, engaged in the event, especially if their In 2006, an estimated 715 million people the Senior Online Acquisitions Executive for country is taking part. Football-related watched the final match between eventu- Totesport Affiliates in Wigan, U.K. The 25- traffic increases by at least 50% percent al champion Italy and runner-up France. year-old Leyland is a six-year veteran of the and perhaps more as the event is going When that many people are paying at- industry. on. After experiencing Euro 2008, I’m tention to one single event it can mean sure the World Cup will be excellent for sports-betting affiliates. big business for those of us in the affiliate Both men agreed to speak with us re- marketing industry. garding how their respective ends of the Dean: This year’s World Cup is expected business will use the World Cup to gener- to be THE biggest event in terms of cus- As we inch closer to the start of this year’s ate traffic, how their customers typically tomer acquisition and turnover we have World Cup in South Africa, the GPWA Times ever seen. Online betting has really come wager on the event and what teams they of age since the last World Cup with com- sat down with two men who will have a vest- think will make some noise once the games panies more geared to accepting world- ed interest in the popularity of the event. commence. wide traffic for a worldwide event. For
The GPWA Times Magazine World Cup Round Table 20 21
Totesport the World Cup is the number Do punters who don’t typically bet on At what point of the World Cup do you one event this year with Cheltenham a close second. Obviously we have a close football – or any other sports – decide get the most traffic? affinity with Cheltenham. It is what Totes- to specifically bet on the World Cup? If Dean: Immediately prior to the World port has been all about since 1928. But we so, do these new players typically con- Cup commencing and just before England are engaging more and more with other games. Being a U.K. company the bulk of sports. We are no longer just about racing vert into full-time players? our base is from the U.K. and so they have but football, golf and cricket, too. Matija: This is really a good question. I a huge interest in the home team. would think that people that are not yet How will you use the World Cup to betting online but are placing some bets Matija: My best time will be at the very generate traffic? in local betting shops are likely to become start, when there are a lot of games and all online players with good signup bonuses countries are still in the game. Dean: We like to keep our cards close to during the Word Cup. our chest on these matters, only telling af- Let’s move away from the business side filiates and customers alike when we feel Do you agree, Dean? the time is right. Obviously we will be giv- of things and talk to you both as fans. ing affiliates enough time to add the con- Dean: Yes. Usually a customer whose How closely do you follow the sport and tent to their sites so there is no need to betting profile seems to be consistent with who are your favorite teams? worry on that front. horse racing betting, for example, will have a small flutter on the World Cup. Dean: I love the World Cup. Racing is We can appreciate that. What about you, great and I enjoy playing golf regularly, Matija? Can you share with us how you’ll Matija: Online betting still has a lot of but nothing comes close to football, es- room to grow and from my experience pecially the World Cup. Obviously Eng- promote the event? when your friends start to play online you land is my team and I hope they do well follow. It is as simple as that. I placed my this year, but I have my doubts. Secretly Matija: I will create special sections dedi- first online bet in 2000 and never walked I follow Spain, too. Being a Liverpool fan, cated to the World Cup. There will be a lot into another betting shop again. their team of a few years ago consisted of of previews, statistics and forum posts. Reina, Arbeloa, Alonso, Torres and Reira CPC advertising helps a lot and I will use Dean: Yes, it’s more of an interest thing. so I think deep down, most Liverpool fans that for at least two months – the month They will be subjected to watching the will be keeping an eye on how the Spanish before the event and during event. matches either at home or down the pub team does. so having a small bet helps keep interest. How popular are the competition or Matija: I follow the World Cup from prize pool contests? Do they help you Matija: Some people are still reluctant Game 1 all the way until the very end. My to play online; it looks too complicated to favorite team is Croatia, but since they convert smaller or more casual players them – but with a new generation of play- are not going, I will support Netherlands, into more regular players? ers coming up that are tech savvy, it is the Spain and England. fastest-growing online industry. We might Matija: Tipster competition with money see some people that never used to bet be- Before we let you go, can you pull prizes is the core of my sites. It is a great con- come players, but those numbers could be verter tool and if you are fair to your players, short term – during the event and never out your crystal ball and give us some they tend to stick to your project. Competi- again. On the other hand, there will be predictions? tions are very popular since they are fun, people that will start their betting career tense and users can get some free cash. during the World Cup and continue to bet. Matija: I think Serbia could pull off very It is hard to say, but numbers of signups good results; they have an excellent team. Dean: I must admit, I am not a fan of and first-time deposits will increase. And as always Germany, Brazil, Argentina competitions to gain acquisition or assist and Italy are to be looked after. in conversions. They are more of a fun What’s more popular: “To-win” bets diversion for users. Having managed the Dean: No surprise for my teams to beat partnership between one of England’s big- before the World Cup begins, or the – Spain and Brazil. Brazil quietly went gest Premier League football teams and single-game betting? about their business during qualifying, an online betting company I have been in swapping flair for grit and dynamism the position of relying on competitions to Dean: Outright betting will be our most whilst Spain has the best set of individual drive acquisition and it just didn’t work in popular market, by far. players compared to any other team. that particular case. Season tickets, signed shirts, even the chance to play at the Matija: I also expect to see a lot of live ground were popular competitions, but betting during this year’s World Cup. did little in terms of generating traffic.
The GPWA Times Magazine World Cup Round Table 22
2010 EVENT CALENDAR For full details, visit gpwa.org/conferences
May 2010 September 2010 January 2011 April 2011 12-13 May 1-2 September 9-11 January CAC Amsterdam Global Interactive Gaming Latin American iGaming Affiliate Summit West 2010 NH Grand Krasnapolsky Summit & Expo (GiGSE) Congress (LAiG) Wynn Las Vegas Amsterdam, The Netherlands Palais des Congres Uruguay Las Vegas, Nevada cac2011.com Montreal, Canada laigcongress.com affiliatesummit.com gigse.com iGB España 25-27 January 25-28 May Hotel Hesperia International Gaming Expo (IGE) Madrid, Spain iGaming Super Show Earls Court Exhibition Center igbespana.com The Prague Fairground London, United Kingdom Exhibition Centre ige-exhibition.com Prague, Czech Republic igamingsupershow.com October 2010 27-29 January The Betting Show 7-10 October Earls Court Exhibition Center June 2010 Budapest Affiliate Conference London, United Kingdom SYMA Centre bettingshow.com 8-9 June Budapest, Hungary budapestaffiliateconference.com 5th Annual Online Bingo 27-30 January Summit & Awards London Affiliate Conference (LAC) London, England 19-21 October London, United Kingdom bulletbusiness.com/bingo European iGaming Congress & londonaffiliateconference.com Expo (EiG) 14-15 June Bella Center EGR Live Copenhagen, Denmark March 2011 Old Billingsgate eigexpo.com London, England Asian i-Gaming Congress & egrlive.com November 2010 Expo (AiG) Sofitel Philippine Plaza July 2010 12 November Manila, Philippines aigcongress.com Finance for Online Gambling 20-22 July Grand Hotel Sportsbetting & Lotteries Asia Stockholm, Sweden iGB DownUnder Hong Kong i-gamingforum.com Star City beaconevents.com Sydney, Australia 16-18 November igbaffiliate.com August 2010 Global Gaming Expo (G2E) Las Vegas Convention Center 15-17 August Las Vegas, Nevada USA Affiliate Summit East globalgamingexpo.com Hilton New York New York, New York USA Scandinavian Affiliate Super affiliatesummit.com Summit Grand Hotel 27-30 August Stockholm, Sweden i-gamingforum.com CBG Affiliate Weekend Hilton Hotel and Suites Niagara Falls, Canada cbgaffiliateweekend.com
2010 Event Calendar Clip & Save 22 24 25 Online Bingo – What a difference a year makes Has the bingo bubble burst, or is the best yet to come?
By Gary Trask that Internet bingo was near- ing the same popularity as on- After seeing a surge in popular- line poker. ity and revenue for the better part of the last five years, the But instead the bingo boom has online bingo industry is sud- gone bust, to some extent. Af- denly at a crossroads. ter seeing a 10 percent growth in players month-to-month for “We’ve been very fortunate most of 2008 and the begin- as an industry,” admits Phil ning of 2009, that number has Fraser, the founder of Which- dropped to less than 1 percent Bingo.com and WhichBingo. a month. The primary reason co.uk. “But it now appears we for the flatlining growth is mar- have our work cut out for us ket saturation, but the problem if we want to continue to see goes much deeper than that, ac- the kind of growth we have cording to Fraser. become accustomed to.” First off, there have been more Fraser is scheduled to be a key- new transactions during the note speaker at the 5th Annual last year that have helped the Online Bingo Summit in Lon- “big get even bigger,” accord- don June 8-9, where topics for ing to Fraser, a former online discussion include player satu- casino manager at William Hill ration, consolidation and prod- who now owns Focus Online uct innovation, all of which are Management, which runs the critical elements to the future WhichBingo sites as well as of online bingo.
“We are not yet at the point where we’re desperate to sur- vive,” Fraser explains. “There is still money to be made and Phil Fraser, Focus Online Management we can all still make a profit. But how much that profit will end up being over the next few years is in serious doubt.” Gambling Capital, a leading supplier of data regarding the As little as 16 months ago, there didn’t gambling industry, reported seem to be any doubt that the economic that global online bingo rev- opportunities for online bingo were end- enue in 2008 topped $1.5 less. The number of online bingo sites in billion and would reach $2.5 the U.K. – the most prolific bingo market billion by 2012. Even Internet ? in the world – went from 17 in 2004 to 238 powerhouse Google got into the in 2008 and the number of players in the act, reporting in December of U.K. doubled between 2007 and 2008. H2 2008 that Web research showed
Online Bingo — What a Difference a Year Makes 24 25
FreeBingo.co.uk, BingoVIPClub.com, Live- isn’t so sure that it will lead to unmiti- it’s a simple game is a weakness because FreeBingo.com and TopBingoSites.com. gated success. you can’t do much with it. You call out the numbers, the players pick them off and Last summer, PartyGaming purchased “I think what these affiliates are find- then somebody wins. If you try to change Cashcade, which owns the Foxy Bingo ing is that the grass isn’t always greener that or complicate it, you could hurt its and Think Bingo sites, and in March on the other side,” says Fraser. “It’s one mass appeal. Harrah’s Interactive Entertainment en- thing to market bingo and generate traf- tered the market by launching CAESARS fic. But generating all of that traffic and “The same goes for content. You always Bingo Online in the U.K. Earlier this year, then being responsible for retention, re- hear that content is king, but really, how Paddy Power opened a bingo room and starts, registration and customer service much can you write about bingo? It’s not created an online magazine dedicated to is a whole other set of problems.” like poker where you could write count- bingo – believed to be the first of its kind less strategy articles. There’s no Doyle – called Bingo Power. These recent developments may have Brunson of bingo. Sure, you can write on slowed the overwhelming progress of and on about promotions and the like, “As the big get bigger, the smaller sites the last five years, but they have far from but that’s not the kind of content that will might not be able to compete,” Fraser stopped it altogether. The online bingo generate new players.” explains. “This is an open market, but industry still has the potential to flour- that isn’t something that’s going to allow ish, provided it generates more players But the uncomplicated nature of bingo for a lot of growth. Then you have could also help it expand into other companies that have never offered markets. The reason online bingo bingo before, but are very good at was so popular in the pre-UIGEA sportsbook or casinos, now getting U.S. and absolutely exploded in the into the bingo market. And this is U.K. is the game’s simplicity. muddying the waters even further.” “The beauty “It’s like a novice gambler walking In turn, bingo affiliates who have of bingo is its into a Vegas casino,” says Fraser. seen their share of the pie shrink “He may know how to play blackjack have taken on the “if you can’t beat and roulette and he knows how a slot ’em, join ’em” defense. Over the last simplicity, but at machine works. But don’t put him year, Fraser said that a recurring anywhere near a craps table or Sic trend has seen bingo affiliates be- the same time that Bo table. It’s just too complicated.” come bingo operators. Another factor in bingo’s success in “What they’re thinking is, ‘Wait a is also one of its the U.S. and U.K. is that it was al- minute. If I’m generating X amount of ready integrated into society. With traffic and sending it to a bingo room that said, Fraser’s newest target for and getting Y as revenue, why don’t major downfalls.” growth is Spain, where he launched I just keep all of that traffic and get QueBingo.com in 2008 but growth a much, much bigger Y figure,’” says has been slow for economic reasons. Fraser. “It all makes perfect sense.” – Phil Fraser, Focus Online Management South America is also a possibility, but economic and broadband chal- An example is Costa Bingo, whose lenges may inhibit the growth. The chief executive Richard Skelhorn started through awareness, product innovation game has done well in Scandinavia, and U.K. casino portal Casino Choice in 2001. and expansion into new markets. But, Fraser feels the next battleground could Other successful affiliates such as Digital Fraser points out, this could be easier well be Italy. Prophets and Bingoport have also gone said than done. into the operator space during the last But larger European markets like France year. Product awareness is moving forward and Germany as well as the Far East are thanks to the well-known players in the unlikely to see much traction because of “Being an affiliate, all you do is recruit business continuing to expand and de- the lack of history with the game. players,” Skelhorn told E-Gaming Review velop while other non-gaming brands earlier this year. “That’s what we have – such as Virgin Online Bingo – increase “The next greatest growth area has to done, day and night, for eight years…This the game’s popularity and reach. have the same culture of the game that the is a challenge, but knowing how to market U.S and U.K. have,” Fraser adds. “When to and get players gives us a head start.” Product innovation, however, is a bit you’re dealing with a country like that, more of a challenge. bingo is a natural. Despite the stagnant While Fraser fully understands the rea- nature of the market, it can still succeed. soning and logic behind affiliates going “The beauty of bingo is its simplicity, but And we’re counting on it to happen.” to the next step and not only operating at the same time that is also one of its ma- skins, but also becoming operators, he jor downfalls,” Fraser says. “The fact that
Online Bingo — What a Difference a Year Makes GAZING INTO THE CRYSTAL BALL
The online gambling industry has seen a great deal of change in its short history. And the future will likely be more of the same in that regard. Want to know what’s next on the regulatory landscape, or what the next big innovation in the market will be? So do we. We asked four “Titans of Industry” to look into a crystal ball and tell us what they see coming down the road. RIGHT2BET’S CAUTIOUS OPTIMISM AT THE PROSPECT OF MUCH-NEEDED CHANGE
by Ari Last, Right2bet The recently approved reform in France is an example of this, whereby the French here’s no doubt that the now claim to have opened up their market, EU’s current status quo when they have only strengthened the with regards to online position of the state monopoly, Française gambling needs to change. des jeux (FDJ). T The protectionist behavior of the governments of They have done this by stating that the several member states flies in the face competition is welcome, while at the of an EU built upon the bedrock of fair same time laying down rules regarding competition and free trade. taxation, product offering and company location that make the prospect of setting People are no longer fooled by the false up in France commercially unattractive. claims espoused by those seeking to protect state gambling monopolies, That is unless you are already a French “It’s not only and excuses for banning the superior supplier, like the FDJ, who will be able competition at the expense of the to increase advertising and offer more inferior odds that a consumer are running out. services to a customer base that in reality won’t be faced with much other choice, There are currently 17 cases involving particularly in the short-term. lack of competition member states before the European Court of Justice, and the current If the Commission fails to challenge so- brings; it’s a lower situation of inconsistent, unworkable called gambling reform such as that in and conflicting rules and regulations France, they will in essence be paving the standard all round regarding the industry simply cannot be way for other member states to follow sustained. suit, and this is worrying for both private in terms of usability, operators and consumers alike. The tide toward regulation is creeping products and in, with several member states seemingly Should private operators deem it too realizing that ignoring the fundamental costly and risky to enter heavily fortified customer service.” EU principles of freedom of trade and markets we would expect them to embark services is not a viable option in the on a consolidation strategy, in an attempt coming years. to become players in certain regions providers. In France, the odds offered through already established, local service by FDJ have resulted in 30 percent less The relative success of the Italian providers. While this would be better than winnings. regulation model is encouraging others there being just one provider available, to follow suit, and while in principle the benefits in terms of competition This lack of value is scandalous, and right2bet applauds this shift, we are at the would fall well short of what a truly open should member states be allowed to same time extremely cautious as to how far market could offer the consumer. continue curbing the competition, it is an this regulation will go, and we worry that offense that will be perpetrated over and rather than strengthening competition Right2bet has been running a betting over again. and the power of consumer choice, it will challenge for the past few months in in fact achieve the opposite. which we’ve compared the odds and It’s not only inferior odds that a lack of potential winnings offered by state competition brings; it’s a lower standard Under pressure from the EU Commission, monopolies and private operators. all round in terms of usability, products member states have been attempting, and customer service. Crucially, the and will continue to attempt, to portray The results are truly startling. Consumers risk to consumers is also increased themselves as working to liberalize, when forced to bet with the state provider in when players in search of the best in reality they do nothing of the sort. Sweden and Germany make 35 percent value and service are ushered into the less in winnings than an EU neighbor realms of black-market betting by local who can bet with an array of private authorities attempting to push them
Gazing into the Crystal Ball 28 29
into a less enjoyable and profitable EU Presidency to seek “legal clarity” society. We’re sure that if the right moves corner. with regards to the online gambling are made to expose the fallacy of these market, and while we’re encouraged by claims, the chances will greatly increase The current trend certainly suggests that the apparent realization in Brussels that that European citizens will be granted the next few years will see more states change is necessary, we await concrete, access to the plethora of reputable regulating their markets. We’re hopeful positive developments with bated breath. operators available to them. that they’ll realize that the responsibility is upon them to do so in a manner right2bet has always campaigned for the EU We believe that the next five years will that ensures their citizens are the real principles of freedom of trade and services see the opening up of the EU’s online beneficiaries. to be applied to the betting industry in the gambling market to a degree, but as far same manner that they are applied to many as we’re concerned it will in all likelihood In this respect, the recent words of the others. We want a “one-license fits all” not go far enough. Liberalization is most newly appointed Commissioner for system in place, whereby any EU operator certainly in the cards, although exactly Internal Market and Services, Michel that has a license in one country should be how such liberalization is defined over Barnier, encouraged us. Barnier sternly granted access to any market within the the next few years will be critical. You told those member states seeking to EU. This in turn will allow consumers to bet may rest assured that we’ll be doing all prevent private operators entering their with whomever they choose. we can to bring about the type of change domain that the Commission would that will let all European consumers reap continue reviewing cases between states As touched on above, member states the benefits that only genuine market and private operators on their individual have been allowed to use baseless freedom can bring. merits. This intimated to us that he would arguments concerning crime prevention take a tough stance on those seeking to use and consumer protection for too long, Ari is Right2bet’s campaign manager the same flawed excuses in their attempts and we’d like to see the concrete proof tasked primarily with building and to maintain their monopolies. provided by independent reports that maintaining relationships with indi- refute these claims to be given greater viduals and organizations who share Barnier’s Belgian colleague Etienne credence and consideration. Marique, the president of the country’s the campaign’s desire to see all Euro- gaming commission, further impressed It’s in the interest of monopoly-backers peans benefiting from a free, safe and us with his remarks that his country to fuel the idea that an open gambling secure European gambling market. will be using their upcoming time in the market is bad for the consumer and 28 29 Structural Growth Drivers Underpin a Positive Outlook for the Interactive Gambling Sector
By Gavin Kelleher, H2Gambling Capital task. Throw in that the regulation would be surrounding any form of gambling and hile interactive gambling that task becomes all the more difficult. has not been immune However, we appear to be at a point in from the global financial time where there are more countries/ crisis of the last two jurisdictions looking to take a favorable W years, it has continued to approach to interactive gambling than deliver impressive rates there are those that are looking to prohibit of growth and has displayed resilience it. Regulation tends to lead to an increase that other sectors have not. H2 estimates in interactive gambling activity as markets that the global interactive gambling become more mainstream due to increased industry was worth $26.6 billion in 2009, marketing and more companies becoming which was an increase of 13.2 percent involved in the sector. over 2008. Italy, which started to license its online So what does the future hold for the gambling markets in 2007, is being interactive gambling sector? While we viewed widely as a success story for proper are not forecasting a significant economic regulation, which allows commercial recovery, we believe the global interactive competition. The regulated online gambling sector can continue to grow and poker and online sports betting markets we are forecasting growth of 14 percent in have grown impressively in Italy since 2010 and 12 percent in 2011. The general late 2007, and the regulation has been consensus at present is that the worst of successful in moving offshore activity the financial crisis could be behind us and onshore. The French regulated market is there are signs that the first “green shoots” set to open in 2010, and while initial tax of economic recovery have been seen. rates imposed look highly punitive for the “Regulation tends to However, we are inclined to remain on industry, most operators are set to sign the bearish side in terms of the economic up despite the regulatory conditions, thus lead to an increase outlook. High levels of unemployment are moving “onshore.” Denmark is another likely to continue in most EU countries, country that is likely to regulate, and, in interactive and the cautious consumer is unlikely outside Europe, Australia appears ready to increase spending any time soon. to open its markets to a greater extent. gambling activity Additionally, certain countries’ fiscal positions remain a worry, such as Greece, H2 believes that the deregulation of as markets become Spain, Portugal and Ireland. So given that interactive gambling across Europe the economic backdrop remains cautious will be a slow process conducted on a more mainstream.” and a significant rebound is unlikely in the country-by-country basis but that by short term, we believe structural growth 2020 there is the possibility that as drivers such as regulation, innovation and much as 35 percent (in the region of €50 the Italian, French, Spanish and perhaps penetration will underpin growth in the billion) of what could potentially be a German and Greek markets are played interactive gambling industry. €140 to €150 billon marketplace would out in the near future. be accounted for by interactive market Regulatory drivers channels. However, given the importance In the U.S., the regulatory backdrop is of economies of scale in iGaming and the more complex and everyone is split on remain positive concentration of value in just a handful whether regulation will be introduced on of member states, H2 believes that the a federal or state level, or if any regulation Predicting how governments are going will be introduced at all. At this stage, to act in terms of regulation is a difficult winners in the European marketplace will be decided long before this time as UIGEA is set to be implemented on
Gazing into the Crystal Ball 30 31
June 1st 2010, having been delayed in driver of growth. While we have seen late 2009, and it will be interesting to many false starts for mobile over the Interactive gambling still see the impact, if any, this will have on years, the introduction of the iPhone and remains small in relation to existing offshore activity taking place in the impact it has had on mobile devices overall gambling the U.S. In terms of potential regulation in general means operators can finally to be introduced, much has been made offer customers a highly user friendly Given the impressive rates of growth that of federal moves from legislators such and interactive mobile experience in have been delivered by the interactive as Rep. Barney Frank (D-Mass.) and interactive sports betting. In terms of gambling industry over the last 15 years, Sen. Harry Reid (D-Nev.). However, other verticals (casino, poker and bingo), people will still ask how it can continue while we would not rule out federal-level we may not be there just yet in terms of to grow at impressive rates. Looking at legislation/regulation, it has always had mobile technology for them to become the overall interactive gambling market a number of difficult hurdles to jump, a mass-market mobile product offering, globally, we estimate that it was worth and this time it will be no different. If but watch this space. $26.6 billion in 2009, just 8.6 percent of any U.S. regulation is introduced, it the overall global gambling industry. This looks more likely that it will be on a state Outside of betting, innovation in rate of penetration is low compared to rather than a federal level. As has been interactive casino gaming is constantly that of other industries. For example, in widely reported, numerous states such occurring, with live casino offerings the travel industry 42 percent of activity as Florida, California and New Jersey becoming more prevalent and many takes place online, while household are looking closely at regulating goods see 35 percent of activity interstate Internet poker. Our online and computer software current forecasts assume no sees 21 percent. We believe the change in the U.S. situation penetration rate of interactive from a regulatory perspective, gambling will continue to grow. and we estimate that the U.S. Our positive view is underpinned interactive gambling market was by the fact that broadband worth $5.1 billion in 2009. We “Innovation has been penetration continues to have estimated that if the U.S. increase, new products continue were to fully regulate all forms of a key driver of the to be introduced and the newer interactive gambling that it could breed of gamblers are more create approximately 30,000 industry since its technologically savvy and thus jobs and would generate $22 more likely to conduct a more billion in gross gambling yield in origins in the mid significant proportion of their a full year. 1990s and this is likely gambling online. Innovation will In summary, the interactive to remain the case.” gambling industry will continue continue to drive to be impacted by the unique growth in the industry economic times in which we find ourselves. However, unlike many Innovation has been a key driver other industries, interactive of the industry since its origins in gambling is in an enviable position the mid 1990s and this is likely to given the structural growth remain the case. A key innovation drivers that are underpinning its in the industry in the last number of operators reporting stellar growth from growth. These structural growth drivers years has been live betting or betting live casinos. In addition, online casino look set to remain in place, which gives in running. Leading sports-betting games are using an increasing level us confidence in the positive view we operators have stated that live betting is of interactivity. This interactivity is have for the future of the industry. accounting for in some cases more than what players are demanding and many 50 percent of interactive sports-betting operators have stated how games with Gavin Kelleher is an independent turnover. While live betting has led to high levels of interactivity have been gambling consultant who works with some cannibalization with traditional successful in increasing player life cycles H2 Gambling Capital, a leading gam- online sports betting, it has grown the and player yields. In addition, we are bling market intelligence and con- overall online sports-betting market. The also seeing more and more convergence upcoming World Cup in South Africa is between online gambling and online sulting group based in the U.K. likely to further drive live betting/betting gaming. We believe this is likely to in running products. continue, particularly as the current generation of online gamers matures Another area of innovation within the into online gamblers. This convergence sector is mobile betting, which we believe is likely to lead to further innovation in it is on the way to becoming a significant casino games in the future.
Gazing into the Crystal Ball 30 31
CONSOLIDATION, DIVERSIFICATION AND REGULATION
By Clive Hawkswood, business because of interest in the World Remote Gaming Association Cup in South Africa this year would be missing a trick if those newly attracted aking predictions about customers then go off to play poker or the remote gambling roulette somewhere else. industry is always fun. People can disagree with In the same way that specialist food outlets M you, but at the time they have been squeezed by the growth of are made nobody can shopping malls and supermarkets, it will prove they are wrong. become harder for niche operators to thrive Then further down the road when in the online gambling industry. There everyone else has long forgotten about will always be exceptions to that rule and them it’s easy to go back and quote it would be a duller place if that weren’t selectively to demonstrate your finely so, but the economics of competition will honed skills with a crystal ball. inevitably make it tougher.
Of course that only works if at least one 3. Industry profits will be taxed of the predictions comes to pass, so to at a higher rate. Although it sticks in hedge my bets it makes sense to make the throat a bit to say it, this will be the predictions about lots of issues. The list real price of more companies gaining below is therefore lengthy, so the odds unfettered market access. There will be a are that at least some of them will turn huge range of tax issues to address, not out to be right. the least of which will be avoiding the threat of double taxation, but a “higher” 1. There will be more consolidation (not “high”) tax burden will become in the industry. I can hardly say that you the norm. The transition will not be In the same way heard it here first, but we are a maturing an easy one for the industry because it industry and that is what happens. It is calls for a huge amount of education of that specialty already happening even though we have policymakers, regulators and politicians not yet had a so-called “headline making” in lots of jurisdictions. Almost without food outlets have deal, and over the next two or three exception their points of reference will be years I would expect that to accelerate. the tax regimes they have in place for their been squeezed There are various drivers for this but domestic brick-and-mortar industries, one of the sticking points in the past, and that is irrespective of whether by the growth of especially for publicly listed companies, they have private-sector industries or has been uncertainty about potential state monopolies. It is and will be an shopping malls and legal liabilities. The risks of that can be uphill struggle to persuade them that expected to recede as greater legal clarity the business models for off and online supermarkets, so it emerges in a whole range of markets. It gambling are completely different. will happen; it’s just a question of when. will become harder 4. Consumer demand and market 2. With consolidation will come growth will continue strongly for accelerated diversification. Online the foreseeable future. Prohibition for niche operators gamblers want and increasingly expect a and overly restrictive tax and regulatory one-stop shop. Companies that specialize regimes do not work. That is a bitter pill to thrive in the in one form of gambling already find for some jurisdictions to swallow, but it hard when their carefully cultivated like it or not they will find it difficult to online gambling and expensively recruited customers go bury their heads in the sand and plow off to a competitor to access a different on regardless with policies that do not industry. kind of product. For instance, an online work in practice. In the wider world of sportsbook that might attract great new e-commerce, of which online gambling
Gazing into the Crystal Ball 32 33
is a successful part, technology has rather than unknown; to present a human 7. In many jurisdictions, the intro- empowered consumers in a way that even face; to inform in a nonthreatening way. duction of sportsbooks will be the 10 years ago would have been hard to That takes time, and we are still a young thin end of the online gambling imagine. Governments that ignore what industry with an undeserved reputation wedge. The very notable exception to their citizens want will have to adjust that too often precedes us. But my this is the USA, where there is almost their thinking. prediction is that with more time we will paranoia in some quarters about sports be seen as responsible partners and, as betting (with the exception of horserac- Consumers are the most important part a British politician said of the British ing). This is at best strange given that of the industry and yet tend to be the gambling industry a few years ago, we half the country seems to have no trouble most readily overlooked when policies can move from the shady side of the getting a bet down on the Super Bowl ev- are being developed by governments. street and be accepted as a very reputable ery year, but unless the huge sports lob- In terms of spending they can and do industry with high standards. by changes its position dramatically any vote with their feet, and the first real new licensed market in the USA will be generations of Internet shoppers will When that happens, other business sectors restricted to online poker and hopefully boost e-commerce spending as a whole, and their shareholders will also become online casinos. and the online gambling industry is well- more comfortable with the concept of placed to ride that wave. white-labeling and joint ventures. Again 8. My next prediction is a very safe it is surely only a matter of time before we one: sports leagues will fight tooth Growth will come from the continued see the Googles, Facebooks and Tescos of and nail to extract higher revenues supply of excellent gambling products this world with their own branded online from sportsbooks. This might be that meet that demand. There are many gambling suites. through statutory levies, new IP rights, jurisdictions where legal restrictions commercial deals or a combination prevent the most effective promotion 5. The convergence of technologies. of all three, but the resentment felt of online gambling products and At the moment it is common practice to against betting operators by a wide companies. As a greater body of evidence differentiate among online gambling, range of sporting authorities is hard to emerges which demonstrates that mobile gambling and interactive underestimate. Sports are traditionally online gambling is not some terrible gambling. Those demarcations are a given a sympathetic ear by governments evil that makes problem gambling result of the technology that we began in a way that we can only dream about. rates go through the roof, regulators with a few years ago and reflect the They will stoke the fires with ill-founded will struggle to objectively justify these differing limitations of the respective tales of corruption and betting-related kinds of advertising hurdles. However, delivery systems. Those differences match fixing. This strategy plays to every online consumers do have the freedom will be largely eroded as societies move stereotyped view that politicians and to circumvent these barriers, and if they to having single devices that are both others have of the gambling industry and want online gambling products they will portable and capable of providing will be used by sports to seek control of seek them out. The continued strength of their entertainment, information and the types of bets that can be offered and, the U.S. online gambling market should audiovisual needs. The rapid rollout of as they put it, to secure a “fair return” be proof enough of that. iPods, Blackberries, laptops and multi- for the use of their products. The EU will function mobile phones points to the be the main battleground, and it will get Gambling is a regulated activity just way ahead. It can only be positive for the messy. about everywhere and there is no real remote gambling industry. prospect of that changing, but what we One final prediction? Serbia at 66/1 should be able to predict safely is that, as 6. The industry will have to grapple for the World Cup. relationships are built and grow between with shortages of skilled staff. the industry and regulators, more Thankfully, there are many parts of our Clive has been Chief Executive of the pragmatic regimes will evolve. There will business where people with transferable Remote Gambling Association since always be a healthy tension between the skills can quickly slot in. But attracting 2004. Before that he spent six years two, but as more regulators gain a proper good people from other sectors and as a policy advisor to the British Gov- understanding of how the industry letting them settle in can take time, and works and the huge range of tools that every time a business expands or new ernment on gambling issues and ear- companies utilize to underpin effective markets open the thinner that existing lier in his career worked for several regulation, they will gain the confidence experience is spread. Some companies years in the betting industry. to relax the reins of control. are already addressing this through long- term strategic planning—for instance with Fear of the unknown is common in-house training programs for software everywhere. For many people in positions specialists—but it is easy to see a more of influence combining the Internet and structured approach being adopted with gambling is a match made in hell. It a greater degree of succession planning ignites the prejudices and fears of lots of built into company organizations. people, and we ignore that at our peril. The answer to that is to become known
Gazing into the Crystal Ball 32 33 The Future of Internet Gaming: Some Factors to Consider
By Murray Marshall, using interactive formats, eliminating or Kahnawake Gaming Commission reducing the need for time-consuming software downloads. Broadband has also t is, of course, impossible made possible new, bandwidth-intensive to predict with any accu- forms of gaming such as video streaming racy what the future of “live dealers,” which is particularly Internet gaming may be important for the Asian market. I — particularly if the fore- cast extends beyond the In the Internet world of shrinking next two years. The nature of the industry attention spans, speed is king. is such that it changes quickly and has the capacity to morph in unexpected direc- In terms of accessibility to the con- tions; for example, the explosion of peer- sumer, eMarketer opined in its 2006 to-peer (poker) gaming in the early 2000s U.K. Online Report that “there also is a had a profound effect on the industry. strong correlation between broadband and online gambling, so as broadband That said, there are certain identifiable penetration grows the market for on- factors that will influence the industry in line gambling will continue to grow.” the foreseeable future. The increased popularity of online gaming in Europe and Asia in the past Technology few years is driven, at least in part, by increased accessibility to broadband Obviously, the online gaming industry connectivity. It is safe to predict that as would not exist without the 20th-century access to high-speed connectivity con- technological phenomenon of the tinues to grow, so will the popularity of “Increased Internet. Technological advances have Internet gaming. been, and will continue to be, a major influence on the growth and direction of In the past two or three years, gaming bandwidth . . . the industry. through the use of wireless devices — particularly mobile phones — has become allows games to As previously mentioned, the advent of a fast-growing segment of the industry. peer-to-peer technologies made possible Smart phones with larger screens and be played using the rapid growth of online poker, which better graphics combined with more in the early 2000s single-handedly took efficient download capabilities and more interactive formats the industry to a whole new level. Recall affordable data plans have all contributed that shortly after its initial public offering to the rise of the mobile phone as a – eliminating in 2005, PartyGaming was valued at over platform of interest to many gaming $12 billion! operators and players. or reducing the A necessary complement to peer- The 5th Annual Mobile Gaming Meeting need for time- to-peer technologies was increased held in London in November 2008 bandwidth requirements. Advances in concluded that it was very possible to consuming software broadband Internet access — both in improve gaming revenues earned from terms of bandwidth and accessibility the games of blackjack, poker, roulette downloads.” to the consumer — have impacted and and other casino games with the help of will continue to impact the industry. mobile devices within a calendar year. Increased bandwidth enables all gaming operators to offer better graphics, sound The jurisdictions with service providers effects and overall functionality for their that can best fulfill the industry’s techno- games. It allows games to be played logical needs — bandwidth, latency, reli-
Gazing into the Crystal Ball 34 35
ability, redundancy — are well-positioned decisions of the European Court of Justice operators from taking U.S. players. to become market leaders. in cases such as Gambelli and Placanica. UIGEA did little or nothing to reduce Commentators have predicted that the the number of players in the U.S. — the European online gambling market will same market potential in the U.S. exists Shifting political and legal expand as recent rulings that gamblers in the post-UIGEA world as it did prior positions are entitled to the same guarantees of to the law’s passage. All the UIGEA choice and value begin to sink in within accomplished was to force U.S. players to There is no doubt that, with the exception EU member countries: “Change is in the use the services of smaller — and in some of Australia — some states of which Cards.” cases unregulated and less reputable — enacted enabling legislation in the late online gaming sites. 1990s and were then quickly throttled If there was ever any doubt that a single back by their federal government — the legislative act could impact the Internet As a result of recent expansion of Europe- early years of Internet gaming belonged gaming world, that doubt was removed on an and Asian markets, most reports indi- to the smaller jurisdictions: Antigua, October 13, 2006, when the United States cate that the U.S. no longer has the lion’s Kahnawake and, later, Isle of Man, Malta, formally enacted its Unlawful Internet share of global online gaming players, Alderney and Gibraltar. Gambling Enforcement Act (UIGEA). though it continues to offer a large and demographically desir- In 2005, the United King- able player base. Accord- dom enacted an extensive- ingly, the efforts of some ly revised Gambling Act, U.S. legislators like Rep. which included provisions Barney Frank (D-Mass.) for the licensing and regula- to enact laws that would tion of “remote gambling.” “The efforts of some regulate, rather than pro- The U.K. Gambling Act pro- hibit, online gaming — if vided that operators that U.S. legislators . . . successful — would clearly were licensed in other EEA have a significant impact countries – or licensed in to enact laws that on the industry. other “white-listed” juris- dictions – could advertise would regulate, rather In Canada, although the their services in the U.K. federal government has Although many operators than prohibit, online kept its head planted were keen to tap into the firmly in the sand, several U.K. market, few were en- gaming—if successful— provinces have indicated thusiastic about the pros- that they are moving ahead pect of paying U.K. taxes on would clearly have a with plans to take gaming their gaming revenues. operations — particularly significant impact on poker — online. Rather than As a result, many operators issuing licenses to third- chose to locate in white-list- the industry.” party operators, the plan ed jurisdictions that offered calls for existing provincial the best of both worlds: the gaming corporations to ability to advertise in the maintain their monopoly U.K., combined with the over gaming — in this case, more favorable tax rates of online gaming. offshore jurisdictions. This situation is unlikely to continue indefinite- Literally overnight, several major gaming Given that Canadian provinces are ly as the U.K. is actively exploring ways to companies shed billions of dollars of constitutionally restrained from restrict the taxation advantages of being stock value and took steps to beat a hasty accepting players from outside their licensed in a white-listed jurisdiction. retreat from the U.S. market. European geographic boundaries, and given their and Asian markets suddenly had a whole relatively modest population bases, In the event the U.K. implements steps new appeal as the industry scrambled to British Columbia, Quebec and the to limit the current desirability of being align their business and marketing plans, Atlantic provinces have indicated they licensed in a white-listed jurisdiction, corporate structures and, of course, will “partner” to create a viable pool of it will create an imperative for affected payment processing arrangements, to the online poker players. Whether or not the jurisdictions to offer other competitive new post-UIGEA realities. plan is financially viable, it is at least a advantages or face a decline in their clear indication that Canada is moving in market share. Among the many ironies that resulted the direction of their U.K. cousins, rather from the enactment of UIGEA was that than their U.S. neighbors – i.e., choosing European markets have also been, and it was most effective in dissuading only to regulate, rather than prohibit, Internet will continue to be, affected by important the largest and most reputable gaming gaming.
Glazing into the Crystal Ball 34 35
Will smaller jurisdictions like Antigua, these various regulatory models – creating the International Association for Gaming Kahnawake and Alderney be able to a global patchwork that provided little Regulators (IAGR) is actively addressing maintain their market share in view of certainty or protection to players. this issue. eCOGRA, which describes itself the rapidly shifting political and legal as “a non-profit, London-based player positions in other, larger jurisdictions? In Since approximately 2005, some protection and standards organisation my view, in the short and medium term, jurisdictions initiated efforts to develop that provides an international framework it is likely that smaller jurisdictions will working relationships among their for best operational practice requirements continue to play an important role in the respective regulators. For example, with particular emphasis on fair and industry. However, to survive in the longer the Kahnawake Gaming Commission responsible gambling,” has developed a term they must focus on advantages that (KGC) entered into Memoranda of comprehensive set of requirements for larger jurisdictions cannot offer – in Understanding with its counterparts in the auditing and monitoring of online particular, preferable taxation rates. Antigua (2005) and Malta (2006). gaming operators that has been approved Over the past several years, regulatory by the European Gaming and Betting Smaller jurisdictions would also benefit models have become much more Association (EGBA) and by the KGC. from developing closer working relation- sophisticated and more specifically tooled ships at a regulatory level. A network of to address the unique requirements and There is little doubt that the next few like-minded smaller juris- years will see a confluence dictions that would allow of regulatory regimes for for reciprocal recognition, the online gaming indus- or portability of licenses try. The development and would be of significant implementation of com- interest to online gaming patible regulatory stan- operators and would offer dards are clearly in the a platform that could com- “The movement best interests of players, pete with the monopolistic and are a further indica- approach that seems to be toward creating a tion of the maturation of favored by larger jurisdic- the industry. tions. common standard Murray Marshall has for the regulation been a practising Cana- Confluence dian lawyer for over 22 of online gaming years and is a member of regulatory has been gaining of the bars of Alberta oversight and Québec. he has momentum over the served as legal counsel In the early years of the and advisor to the Kahn- industry (mid-1990s), past several years.” awake Gaming Commis- regulatory oversight of sion since its inception online gaming was either in 1996 and, in 2009, was nonexistent or focused named as General Coun- more on “licensing” sel to the Commission. with little attention to “regulation.” The first credible regulatory model emanated from Australia and demands of the Internet gaming industry. in particular, Queensland’s Interactive New categories of licensure were created Gambling (Player Protection) Act, 1998. — particularly in Malta and Alderney — to The Queensland model served as a basis address the distinctions among networks, for the original regulations developed operators and software providers. In the by several other jurisdictions including latter part of the 2000s, in response to Kahnawake, Antigua and Malta. These industry demands for redundancy, several early models were essentially land-based jurisdictions created mechanisms that gaming regulations loosely adapted to the allowed operators to locate their servers online gaming industry. within their territories for the purpose of “disaster recovery.” In the first half of the 2000s, although The movement toward creating a common a number of jurisdictions established standard for the regulation of online regulatory regimes for online gaming, gaming has been gaining momentum over there was little if any attempt to reconcile the past several years. A subcommittee of
Gazing into the Crystal Ball Gazing into the Crystal Ball
THE FACE OF THINGS TO COME Antonio Esfandiari works his magic for Dan Fleyshman and Victory Poker
By Aaron Todd
hen Victory Poker held its official launch party in February, it already had more than a dozen pro- W fessional players endorsing the site. Most of them have built successful careers as online poker pros, and many — like Paul Wasicka, who won more than $6.1 mil- lion as the runner-up at the 2006 World Series of Pok- er (WSOP) — have made waves in live tournaments.
Hard-core poker aficionados and Internet poker forum read- ers are sure to recognize some of the names on Victory’s ros- ter. But the Average Joe, who might casually watch poker on TV when nothing else is on, probably wouldn’t recognize any of them even if they were sitting at the same poker table — including Wasicka. Well, all of them except for one — Antonio Esfandiari.
Esfandiari burst onto the poker scene be- fore the “Moneymaker” boom, finishing third at the Lucky Chances Gold Rush tournament in San Francisco during the WPT’s first season in November 2002. Nicknamed “The Magician” thanks to his previous profession, Esfandiari memorably outplayed Phil Hellmuth, winning a legion of fans by bullying, and even- tually eliminating, the “Poker Brat.”
“Antonio is The Magician, he’s the magic man, and right now, Phil Hellmuth is the wizard, and [Esfandiari is] making his chips disappear,” said WPT commen- tator Mike Sexton during the Travel Channel’s broadcast.
While the performance gave him notoriety in the poker world, Esfan- diari’s take for his third-place finish was a modest $44,000, as the event’s buy-in was just $3,000 and there were only 152 players. But just 15 months later, after Chris Moneymaker’s win at the 2003 WSOP helped create a boom in tournament poker, Esfandiari became the youngest player to become an instant millionaire in a poker tournament. He bested a field of 382 at the 2004 LA Poker Classic, winning the $10,000 buy-in event to take home nearly $1.4 million. That summer, Esfandiari won a WSOP bracelet in a Pot-Limit Hold’em event, becoming one of just a handful of players to win a WPT tournament and a WSOP bracelet in the same year.
In 2005, Esfandiari was third at the National Heads Up Poker Champi- onship, finished third in WPT and WSOP Circuit events, and made his second WSOP final table. He has been a staple on televised poker events ever since, and a deep run in last year’s WSOP Main Event (24th) continued to advance his credentials.
It’s no surprise, then, that Victory Poker CEO Dan Fleysh- man calls Esfandiari “The Face” of his new venture. And it’s a title that’s stuck to the 32-year-old poker pro.
“All the other pros on Team Victory have now literally started calling me ‘Face,’” says Esfandiari. “I’ve had more airtime than anybody else, so we joke about it all the time.”
While Esfandiari may be the face of the franchise, the real secret of the online room’s early success is the man behind the scenes who signed him.
Fleyshman knew he needed something big to get Victory Poker off the ground. It turned out that something big lived in the same Las Ve- gas condominium complex he called home.
Fleyshman and Esfandiari have known each other for several years, dat- ing back to a poker seminar that Fleyshman attended where Es- fandiari was one of the teach- ers. Fleyshman, who lived in San Diego at the time, had built a business from the ground up starting in high school by getting a trademark on the phrase
The Face of Things to Come “Who’s Your Daddy?” He launched a Esfandiari, who had previously promot- Lee Markholt, Alec Torelli and a handful of Who’s Your Daddy-branded clothing line ed Ultimate Bet and the World Poker others professionals. Fleyshman also made that sold in Kohl’s and Mervyn’s, gross- Tour’s European-facing online poker some news in the poker press by signing ing more than $15 million in sales. At the room, was quick to agree. 2007 Playboy Playmate of the Year Sara seminar, Esfandiari learned that Fleysh- Jean Underwood to a sponsorship deal. man was the youngest CEO of a publicly “I think Dan’s a great businessman, so of traded company in America, and that bit course I was interested,” says Esfandiari. While assembling his team, Fleyshman of information stuck with him. Esfandiari “To be part of something from its incep- was faced with his next big decision: se- visited Fleyshman during a trip to San Di- tion, from its beginning, felt like the right lecting the online poker network that ego and the two became fast friends. Just move. I didn’t want to be one of the peons would host his players. Instead of choos- over a year ago, Fleyshman relocated to at Full Tilt or PokerStars. With Ultimate ing one of the industry’s major players, Las Vegas and moved into the same con- Bet I was one of three people, with World Fleyshman opted for the Everleaf Poker dominium tower as Esfandiari. Last sum- Poker Tour, I was the only guy, and if I Network, which then had an average of mer, Fleyshman approached Esfandiari was going to sign another deal, I wanted less than 100 cash game players at any to see if he would be interested in joining to be one of the main guys.” given time. He moved to Malta, where him in his online poker venture. Everleaf is based, to have direct access to Once Esfandiari signed on, a cadre of his the software developers so he could be in “I knew if I had him, with his charisma, friends and fellow professionals joined constant communication with them on he could convince the rest of the crew to him. Dan “Blitz” Bilzerian, Keith “KG” what he needed to build his site. sign on and it would give me the cred- Gipson, Brian “TSARRAST” Rast, Andrew ibility to do a lot of other things within “good2cu” Robl and David “The Maven” “I chose Everleaf because the software the poker world,” says Fleyshman. Chicotsky joined the group, as did Wasicka, developers had just won back-to-back in-
The Face of Things to Come ternational awards for creativity and the owners were respected by many industry professionals,” said Fleyshman. “I could have gone with an obvious choice, like the Cake Network, but I knew that with Ever- leaf I would be the premier site on the net- work and I would get a lot of help from the staff, since our success would have a direct Victory Poker CEO Dan Fleyshman impact on their success.”
It was a decision that many in the poker calls Esfandiari “The Face” of his affiliate community derided. new venture. And it’s a title that’s “Everlead [sic] has the worst player reten- tion of any site I’ve ever worked with bar none,” wrote leporello in the Poker Affili- stuck to the 32-year-old poker pro. ate Listings forums. “Crap network, crap software, too many no-name skins being bought for $10 of which Victory Poker will just be another in a long line of fails. You can polish your shit and dress it in a tuxe- do, but at the end of the day, it’s still shit.” Continued on page 44
The Face of Things to Come “Look for me at the top!”
whole poker world at the time I didn’t realize what a What should people expect to see in the “search The GPWA Times goes great thing it was! Now I look back and I’m like, “How for the next Victory Poker pro” competition? This the hell did that happen?” competition is going to be so much fun! People are going one-on-one with Victory to get to see how these pros live and want to be a part of Do you think men play differently against you it. You are going to see everything—extreme challenges Poker pro and 2007 Playboy than they would against, say, a forty-something that test the contestants’ physical and mental capacity, man with a baseball cap, beard and greasy T-shirt? beautiful women everywhere, drama, breakdowns, Playmate of the Year I think guys definitely play differently against me, but the players winning extreme amounts of money—almost advantages I have being a young woman at a poker table anything you can think of! Sara Jean Underwood are just as great as the disadvantages, so I think it evens itself out. Some guys like having me around, I think, Is there anything else we should know about Why did you decide to get involved with online simply because you spend so much time at that one table you, poker and/or Victory Poker? Look for me at poker? At first I thought it would be just a fun hobby to and it’s nice to have someone of the opposite sex around, the top! It’s not going to be today or tomorrow but I pick up, but the more I learned about poker and how to so they might be less likely to call me and just fold. But am putting in so much time and hard work, I am going play the more I enjoyed it. In a way it has become my new on the other hand guys also feel like they can push me to be up there with the best of them. You just wait obsession. Poker and especially online poker has become around with big raises or reraises (which they can’t), so and see! so popular these last few years, I wanted to see what all being me definitely has its advantages and disadvantages the fuss was about! at the poker table. Why do you enjoy playing poker? I like playing poker Is poker a sexy game? Poker is ABSOLUTELY a sexy for so many reasons. It’s a great stress reliever. No matter game. There are so many young and attractive men what is going on in my life I know I can sit down at my dominating the poker world, and women too for that computer and escape from it all and just concentrate and matter. Many professional poker players have the get lost in a poker tournament. It’s also a great personal same lifestyle as rappers or professional athletes: lots challenge that I have set for myself. Poker is mostly a of money, expensive and flashy cars and houses, beautiful male-dominated sport so I am determined to become women on their arms, and lots of endorsement deals. a real contender at the table and show the men that Poker is taking over! women can do this too!
We heard you did pretty well in your first tournament. What was that experience like? Yeah, I got fourth place in the first live tournament I played in! At the time I didn’t realize what a big deal that was. Now I know it’s not so common to make it to a final table, even for some of the best players in the world, but because I was new to the
The Face of Things to Come
44
Continued from page 41 Fleyshman was quick to respond. Lights . . . Camera . . . “[Everleaf] was a very small network but since their merger with UPN network and off-the-wall Action! and the fact that I spent a zillion dollars in marketing so far, they are now direct- ly behind BODOG and BETFAIR in size One of the reasons Antonio Esfandiari has been so successful as a professional poker on PokerScout,” Fleyshman wrote un- player is his friendship with fellow poker pro Phil “The Unabomber” Laak. Esfandiari der the username vpCEO. “I’m commit- ted to doing good things for the poker famously enjoys a lavish lifestyle, and he enjoyed the finer things in life long before community and building a strong team he had established himself as a successful player. Laak, who is six years older, saw of players which is up to 19 pros now. Once I get to work everything out with the youngster going through his entire bankroll in a weekend, and helped him Jeremy [Enke], myself and the affiliate establish bankroll rules so he wouldn’t go broke. team look forward to working with [af- filiates].” Their friendship has grown as the two have become successful on the tournament The direct approach had an immediate circuit, and they have often worked together on projects. Most notably, the two impact on the impressions of affiliates. taped a show titled “I Bet You,” where they walked around and made prop bets from “Victory Poker looks like a site that’s run a few hundred to several thousand dollars on everything under the sun, like who by poker players and I’m actually amazed at how rare that has become with new would get more tips as a bartender, who would be a better basketball coach, and skins/sites that launch,” wrote Trev. “Or what type of underwear a woman on the street was wearing (yes, they really asked maybe their marketing team is just that good that they sold me.” a woman that question, and yes, she really answered).
“I never thought I would consider promot- ing an Everleaf skin, but I’m getting more “I would never go up to a woman and ask her that without cameras,” Esfandiari and more interested,” Newjabber wrote. says. “But if the camera’s on me, I can do anything.”
Fleyshman’s measured response is no ac- cident; he understands just how big a role The show aired for two seasons on MOJO, but the network folded in 2008. (You can affiliates will play in Victory Poker’s suc- see entire episodes on Esfandiari’s Web site, magicantonio.com.) Esfandiari and cess or failure. The site offers 35 percent commissions, among the highest in the In- Laak filmed three seasons of the show, and are currently shopping for a network to ternet poker market. air the third season.
“Affiliates are the most important part of growing Victory,” says Fleyshman. “The “It was just so much fun to walk around and mess with people, bet on random ad campaigns are great for branding, but affiliates are where the true conversions stuff, hang out with your buddy all day and have people record it,” says Esfandiari. are at. When things work and affiliates re- “I really miss ‘I Bet You.’” ally convert, them I’m willing to put in the money, time and effort to make everyone happy.” While they are no longer filming the show, the two remain good friends. Before Esfandiari signed on with Victory Poker, he almost partnered with Laak to sponsor While Fleyshman knows where his bread is buttered in terms of affiliate relation- the online poker room Unabomber Poker on the Cake Network, but they ultimately ships, he also knows that the affiliates decided to work independently in the online poker market. And while the two have need something to sell to their players, and he hasn’t been shy about market- been known to bet on everything under the sun, Esfandiari insists that there’s no ing the site. He offers players 40 percent prop bet on which room will ultimately be more successful. But maybe that’s just rakeback, and he’s signed one of the larg- est teams of pros for an online room since because they hadn’t thought of it yet. Full Tilt’s launch, using the slogan “We Made It, We’ll Show You How.” – Aaron Todd
The Face of Things to Come 44 46
A two-minute video showing Esfandiari being shot by a 22-caliber pistol while wearing a bulletproof vest in Blitz Bilzerian’s condominium in Las Vegas is on the VictoryPoker.net Web site.
Victory Poker has already made its pres- either when the show premiers or down ence known with videos on the Internet. the road in repeated airings. When asked In addition to the five-minute, 39-sec- how he was able to convince the produc- ond video produced to introduce the Vic- ers to let them wear the patches, Esfan- tory Poker Pro promotion, a two-minute diari responded, “‘The Face’ has special video showing Esfandiari being shot by powers, you know?” a 22-caliber pistol while wearing a bul- letproof vest in Bilzerian’s condominium Despite exciting promotions, rapid in Las Vegas is on the VictoryPoker.net growth and a great deal of buzz its first Dan “Blitz” Bilzerian Web site. few months, Victory Poker still has a long way to go to compete with the big “Blitz is a maniac,” says Esfandiari. “He boys in the Internet poker industry. But And Fleyshman isn’t just using the slo- was shooting this bulletproof vest on the that doesn’t faze Fleyshman, who has gan as marketing fodder; he’s putting his ground in his condo with a gun. And I’m already built one company from the money where his mouth is. Victory Poker like, ‘So if I wore it, you could shoot me?’ ground up and is looking for another just started a $100,000 promotion that He was all over it. It was a pretty intense success story, all before his 30th will award the winner tournament buy- rush for me. I liked it; I don’t think I’d birthday. ins, cash, a car, clothes and a condo on do it again, but anything for Victory, you the Las Vegas Strip for one year. The con- know?” “My goal is to become one of the top-10 test was launched with a slick online vid- online poker sites,” says Fleyshman. “But eo, and 25 people who upload one-minute In addition to brief Web video spots, Es- I’m not expecting to become the next videos making a case for their inclusion in fandiari has managed to find other ways Full Tilt or PokerStars. It’s amazing how the contest will be selected as finalists. to promote Victory Poker. He will appear many players have been registering every on the season premier of HBO’s “Entou- day from all over the world. I will keep “I want to market the fun, the emotions rage” this summer with Torelli. signing new pros and keep doing new af- and the aspirations involved in poker,” filiate and marketing deals because I’m says Fleyshman. “I’m taking a ‘lifestyle’ “It’s not like I have a real role,” Esfandi- positive that we are going to reach that marketing approach because these are ari says. “I’m just sitting at a poker table. goal. We’ve been growing much quicker our real lives.” You’re going to see my head for like four than I expected and there’s still so much seconds. I have a line, but I don’t think it more to come.” The competition will be taped and is being will make the cut. Nick Cassavetes, a fa- pitched to television networks. Fleyshman mous director who is also a good buddy of admits that there’s no guarantee that it will mine, is at the poker table while Jeremy be picked up, but with Victory Poker put- Piven comes up and they get in this ar- ting up the money and the talent, it should gument and they walk away, and I’m just be attractive to network executives. And hanging out next to Nick, playing poker.” just in case he is unable to find a televised home for the contest, Fleyshman will have While Esfandiari may try to minimize his an in-house production team film every- role, he and Torelli did wear their Vic- thing so that it can be released either as a tory Poker patches during the filming of DVD or on the Internet. a scene that millions of people will see
The Face of Things to Come 46 48 49
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C a s i n o 50 53 GPWA Mark | KasinoKing AFFILIATE INTERVIEW SERIES You posted recently that you like to gam- In Hastings, ble online and that Ladbrokes is your casino of choice. What is it that you like about Ladbrokes? The best thing about doing your Ladbrokes WAS their very generous Daily, Weekly and Monthly +EV bonuses from which I won literally £1,000s over the homework is last 2+ years. I say WAS because in recent months they have made the wagering on Sense and their bonuses much worse for the player half the battle! and many are no longer worth doing. Sensibility How long have you been working in the What exactly is a “Bonus Bandit” and industry? What first drew you to it? I’ve why do you characterize yourself as worked in the industry for four years. As – and SEO one? Just seemed like a good alternative a player, I couldn’t find any sites which gave the information I personally want- name to Bonus Hunter! I enjoy taking Four wild, wacky webmasters ed to see, so I created my own. the more generous bonuses and trying to beat the casino by making a decent prof- who party down at least three it. Nearly all of my deposits are made to What do you like about it? What don’t or four times a week? Not this claim a bonus. you like? I like working from home with time. These interviewees are a totally flexible hours, and being my own You have strong feelings about pro- sensible bunch and have many boss. I don’t like rogue casinos and affili- ate programs ripping people off. grams that have negative carryover. fine traits in common, most no- Why do you feel affiliates should stay tably their top-notch organiza- What surprised you most about the in- away from programs with nCO? I can tional skills, appreciation for the dustry? Microgaming withdrawing from understand the casino’s point of view the USA and not finding a way to work and why they have NCO, but why importance of SEO and highly around it. would anyone want to work with that millstone round their neck when about disciplined approach to deal- 95 percent of programs don’t have it? Which of your five sites is the biggest ing with e-mail! I have had several programs where I money earner? www.KasinoKing.co.uk. earned nothing for six, nine, 12 and even 18 months straight despite player As usual, they are a geographi- To what do you attribute this? It’s much activity, just because one player had a cally diverse group, taking time bigger and has more info than the others lucky big win. It may be okay for the – therefore it gets LOADS more visitors. big affiliates who bring in hundreds of out from their busy lives in the players – but it’s a nightmare for small U.K., USA, Italy and the Neth- Are you a full-time online gambling af- ones like myself. erlands to share their observa- filiate, or do you hold down another job as well? I was only part-time for the first What did you do before you joined the tions and insights with us. two years (had an 8-5 day job), but when online gaming industry? And just how my daughter was born in 2008 I became different is what you’re doing right We’re sure you’ll enjoy meet- a “house husband” and “full-time” affili- now? I was always an “office pleb” do- ate while my wife still goes to work. ing the 8-5, sitting at a desk in an of- ing this quality quartet, and we fice. Started as a Draughtsman, then guarantee you’ll also learn a We keep hearing that economic condi- Purchasing, Materials Control, Pur- thing or two about how to sur- tions are improving and player traffic chasing again and finally Production is increasing. How do your earnings for Control. I still sit at a desk in front of vive and thrive in online gaming the first quarter of 2010 compare to the a PC – but now I’m doing what I want and really enjoy doing rather than same quarter a year ago and to the final as you read their stories. what someone else tells me to do. quarter of 2009? 2010 Q1 was 16 percent down compared to 2009 Q1, but 36 per- How long do you give yourself for re- cent up from 2009 Q4. sponding to e-mail? And what e-mail How do your family and friends feel management tips can you offer? If a player contacts me I usually reply im- about how you make your living? De- mediately – within 24 hours max. For lighted and probably a bit jealous! *Due to space constraints, we could not print the interviews in their entirety. The complete text will be posted at gpwa.org. 53 Mark | KasinoKing Age: Old! (49 if you must publish it) Hometown: Worthing, Sussex, U.K. Currently residing in: Hastings, Sussex, U.K. Favorite food: Pizza One book everyone must read: The Day of the Triffids, by John Wyndham Sites: KasinoKing.co.uk, SlotBeaters.com, RivalGamingSlots.com, usaOKcasinos.com, ArcadeSlotsOnline.com
4. Alan Shearer – living legend – and 5. my wife – would not want to go to din- ner without her.
When you need to get as far away from work as possible, where do you go? To the golf course!
For people not living by the sea, tell them what they’re missing. It’s just so nice to be able to walk out of my front door and be on the sea-front in 5 minutes. You can sit on a sea-front bench and look out to nothing but water and sky and forget about all your troubles and strife. It feels like you are in the middle of nowhere and is just so relaxing.
If you had to pick five keys to success as an affiliate, what would they be, and why? 1. Be a player first. Would you recom- other matters I admit I am pretty useless! You indicate in your GPWA profile that mend a restaurant to someone if you I get something like 25 e-mails per day – I you wish you could earn a living gam- hadn’t dined there yourself first? 2. Listen and learn from existing affili- delete the crap and keep the ones which bling. If you were earning a living gam- need attention – but often get “distract- ates. No one can just jump straight in bling, what would you be betting on? I ed” and forget about them for weeks, or without some sort of guidance. don’t really know – probably sports and even months! My advice to others is don’t 3. Do your homework on the sites you are horse racing. It would be very nice if be like me! thinking about promoting. There are there really were a way to beat roulette, many rogue casinos and affiliate pro- too! How do you manage your “to-do” lists? Do grams out there – avoid at all costs. 4. Be patient. Rome was not built in a day, you use any special software to help you Who do you think is going to win the World and nor was any affiliate’s site. Expect out? I use a little program called “Cute Re- Cup this summer? England! (I’m a hope- it to take at least a year before your minder,” which pops up little unobtrusive less optimist.) Once, just for once, they are hard work is rewarded. message boxes on the right of my screen. going to play to their full potential. 5. Be honest with the content of your site. However, I do tend to keep putting jobs off Don’t try to make something sound and so they build up & up until I may have If you could sit down to dinner with any better than it really is – most players about 20 reminders pop up at once! I’m five people, living or dead, who would are pretty intelligent and will not be nowhere near as organized as I should be. fooled by BS. they be, and why? Time management is one of the biggest 1. My dad (died in 2008) – because I nev- er really talked to him enough before it If you were “stuck” in a city due to travel issues facing affiliates. What time man- was too late. restrictions, would you do everything agement tips can you offer your fellow 2. My former brother-in-law (died in possible to get home? Or would you take webmasters? Don’t put off ANY job un- 2001, aged 40) – just because I miss some time to go exploring? Do some ex- less you really have to – or you’ll end up him a lot. ploring – looking for a fruit machine in as disorganized as I am! 3. Freddie Mercury – his songs meant the nearest pub! SO much to me in my late teens/early twenties.
GPWA Affiliate Interview Series 54 55
Teo | casino2k.com
One of your employees (Casino2k.Mem- “When you find the GPWA, you’re ber) was recently approved as a GPWA member. On his membership application he indicated that his name was “John in the right place.” Luke” but he introduced himself as “Stefa- no” on the message boards. Can you clar- How long have you been working in the poses. They started with poker and sports- ify this situation for everyone? His name industry? More than two years. I started books, and now they’re also planning to is not John Luke; he’s called Stefano. He the day after Christmas 2007. regulate bingo and casinos. I’m not aware presented himself with another name for of any official timeline, but some say they anonymity because of the unclear law What first drew you to the business? Like will sell licenses starting in September. It regulating online gaming in Italy. every student without a full-time job, I seems they will sell licenses for hundreds needed some “easy money.” I looked for of thousands of euros and will tax affili- How do your family and friends feel about a good roulette strategy to win in online ates and operators. I don’t think they care how you make your living? My family casinos and I found a Web site explain- very much about fair gaming, but I hope is not aware I own gambling Web sites. ing how to win thousands of dollars per regulation will clarify all the problems for Only a few people know about my life as day, 100 percent guaranteed. I won about Italian affiliates. an affiliate and they have no problems $500 in two hours, then I lost $200 in one with that because they know I talk about second. I thought something was wrong What prompted you to join the GPWA, gambling in an ethical way. with that strategy, and after a few hours and how has it helped you so far? After I figured out this scammer was using the the roulette scam, I learned I couldn’t Your GPWA profile lists you as a student. “Martingale” betting system just to earn trust everyone. So I looked for informa- Are you still attending university? If so, commissions from players’ losses. That’s tion about an affiliate program I was do you plan to stay in the affiliate busi- how I discovered the affiliate world. I de- starting to work with and I found the cided to make this world better. GPWA. At first the GPWA helped me to ness once you are finished? I missed a choose which affiliate programs to trust. few exams needed to graduate, but I’m spending 99 percent of the time working What do you like about the industry? I Then I started participating in the forums so it’s difficult to complete them. I’ve also like gambling; it’s easy to develop and and I discovered how big and complex opened an SEO agency because I feel the write about something you like. The com- this industry is. GPWA and private fo- affiliate world is very unstable; your earn- petition is now in SEO; I’m a professional rums helped me to improve my market- ings could suddenly drop. Anyway, I’ll try SEO consultant and I have an advantage ing skills and, best of all, to get to know to go on with both projects and, hopefully, over some of the other affiliates. Last but some very good webmasters and make I’ll graduate too at some point! not least, gaming conferences are great; some very good friends. To summarize you get to know hundreds of people and in a sentence: When you find the GPWA, you visit cool cities. you’re in the right place. How long do you give yourself for re- sponding to e-mail? And what e-mail What don’t you like? I don’t like the un- What keywords do you find are bringing management tips can you offer? I check ethical methods a lot of “webmasters” people to your site? What kind of work my e-mail every five minutes, but I re- use to get high positions in search engine did you do to boost casino2k’s popular- spond immediately only to urgent e-mail. Nonimportant e-mail is put on my to-do results and to earn money. In an ideal ity in search engines? Until September list. Don’t waste time replying to spam world, such persons shouldn’t exist. 2009 my Web sites had a lot of visitors link exchange e-mail or to affiliate opera- from keywords like “free bonuses,” “free tors you don’t want to work with. Don’t What surprised you most? The number of games,” etc. Tons of visitors, no earnings. waste time with webmail: configure e- online casinos opened over the last two Since October 2009 my rankings have mail clients like Thunderbird to manage years. Every day I receive e-mails from been boosted for the most competitive all your e-mail accounts. new operators to promote their brands. keywords like “online casino,” “casino I’ve been also surprised by the level of bonus,” “games strategies,” etc. More competition in this market. visitors, higher conversion rates, visitors How do you manage your “to-do” lists? participating in discussion boards and Do you use any special software to help What is the current status of Italian ef- spending hours on the Web site. I focused you out? I started with a plain text to-do forts to regulate offshore online gaming? on SEO and decided to update my Web list using a simple text editor, then it sud- What is the latest information you have? site every day. I think Google has flagged denly reached about 100 entries and I de- The Italian government is regulating on- casino2k as an authority Web site and my cided to give up. Now I use a simple tool line gaming sites for “fair gaming” pur- rankings (and earnings) have suddenly for Linux (yeah, I’m a Linux geek) called improved. GToDo. It helps a lot with managing
GPWA Affiliate Interview Series 54 55
Age: 28 Hometown: Milano, Italy Currently residing in: Top Secret Favorite food: Spaghetti alla carbonara One book everyone must read: The Hitchhiker’s Guide to the Galaxy, by Douglas Adams Sites: www.casino2k.com and many others
tasks, priorities, timelines and it notifies When you need to get as far away from If you were starring in a movie, who you when the task is due. Using a good to- work as possible, where do you go? I go would you want to play your romantic in- do list software application helps a lot in fishing in small mountain creeks: nobody terest? The movie would be “Titanic,” and improving productivity. around, no noise, just the sounds of nature. for sure I’d perform better than Leonardo DiCaprio. Who would I want with me? It Who do you think is going to win the If you had to pick five keys to success as an depends on how the dinner with Nicole World Cup this summer? And why? I bet affiliate, what would they be, and why? Kidman turns out.... € 100 on Italy because I hope it happens, 1. Do not copy; always write original and and because the odds are really interest- useful content so your visitors will read it If you were “stuck” in a city due to travel ing. England has a good chance of win- and spend time on the Web site. Then they restrictions, would you be the person who ning; they’re very strong and they have will definitely come back and trust you. did everything humanly possible to get one of the best and smartest football 2. Love your job, understand the gam- back home? Or would you be the person managers: Fabio Capello. bling world, play and understand the games, do it for fun and with passion who took some time to go exploring and If you could sit down to dinner with any and you will achieve great results. smell the flowers? I love traveling around five people, living or dead, who would 3. Never give up when confronted with and I love adventures. Once when I was in Venice with my girlfriend there was a they be, and why? I’d love to have a din- problems and loss of positions in search strike. We couldn’t find a cheap hotel so ner with five fantastic girls, preferably results, traffic and earnings; try to un- we slept for two nights in a churchyard. alive...just kidding lol. It would be inter- derstand the problems and fix them. So romantic—except for the rats swim- esting having a dinner with Nicole Kid- Only by facing up to problems can you ming in the Grand Canal and eating ev- man, just to check if she is as cute as I’ve learn and improve your skills. erything they could find! always seen in her movies; Gianni Agnel- 4. Analyze details. Never be satisfied with li, to talk about business and make money what you have done. Study and analyze with him; Plato, because you can’t avoid everything on your Web site: taking What are three things that nobody knows talking about philosophy with a glass of care of details can be crucial to suc- about you? wine; Roberto Baggio, because he has cess. 1. I’m an affiliate. been one of the greatest soccer players in 5. Outsource time-consuming tasks with 2. I never wake up before 11:30 a.m. the world; and Michael Schumacher, just low value, and also look for good copy- 3. I’ve watched an Italian soap opera for for driving me home after dinner. writers and organize their work. years. What a shame that only females admit to watching it!
GPWA Affiliate Interview Series 56 57
Bjorn Bos | Madnesz
next big thing. I decided that I wanted to affiliate manager. I also have to admit that be one of the first backgammon affiliates, the parties account for a lot of the excite- Forget about so that if it really became as big as poker, ment! I would be in the front row. After a while, casinos – forex is it became clear that backgammon did not How do your family and friends feel about have a lot of growth potential and I started how you make your living? They are hap- to develop other Web sites. At first, I cre- py for me that I manage to earn a nice where it’s at! ated some poker and casino subpages at extra buck during my time as a student, the backgammon Web site. Then I start- and that I can do the work I like instead of How long have you been working in the ed working together with tommydanger some shitty job at the gas station. (Luuk Noordhoff), who is a good friend of industry? I started in the casino affili- mine from university, and we developed a ate industry about four years ago. At the A couple of years ago (July 2008) you casino Web site. After that, I started work- time I was doing very well in online poker, posted that you believed that “the online ing on forex-related Web sites. and spent quite a bit of time at a Dutch gambling market could die pretty soon.” poker forum. When I found out that the Do you still feel that way? The closure of Dutch is your native language, yet you owners of such Web sites were the biggest the U.S. market was a huge surprise to operate English- and German-language winners of the emerging poker hype, I got many and we were pretty powerless. For- very interested in this money-making pos- sites (in addition to a Dutch-language tunately there still was the EU market that sibility and started to make plans for af- site). How difficult is it to work on the non- we all could turn to, but there are no guar- filiate sites. Dutch sites? Most of my Web sites are in antees that this will always be so. If the EU English. Since I’ve studied in English my decided to put an end to online gambling What do you like about the industry? The whole life, and since I spent four months in the same way the U.S. did, the mar- very strong correlation between effort and in South Africa, I am quite familiar with ket will be pretty dead. The opposite can reward. The more time you put into your the language. I can understand German happen just as easily if the U.S. opens its Web sites, the bigger the rewards. Plus the when reading, but I’m not able to write it. doors again, but no one can predict what freedom to choose location and time to do For this I use freelancers. will really happen. your work. You also operate a forex site and a crude Time management is one of the biggest What don’t you like about the industry? oil site. How are these sites performing for issues facing affiliates. What time man- The unregulated environment. Because you? I got in touch with the forex market agement tips can you offer your fellow of this, the casino operators still have ul- at one of the casino conferences and got webmasters? And what are you studying timate power over their players. I’ve seen enthusiastic to start a financial site. I now I am studying industrial the most ridiculous terms and condi- at university? have seen the tremendous player value in engineering and management. I expect to tions that do nothing but make the player this industry, which is even bigger than the graduate at the end of this year, which will completely powerless in the case of any casino industry. These Web sites currently open up a lot of time for me. Time man- disputes. Also, most players cannot go bring in most of the revenue for me. agement can be really simple: just make to their local court to fight an operator’s effective use of your resources. Don’t for- decision, since the practice of online gam- What prompted you to join the GPWA, and get that you can outsource almost any- bling is illegal in many countries. how has it helped you so far? The amount thing to free up some time. of knowledge available at the forums. What surprised you most about the in- Unfortunately, I still lack the time to get How long do you give yourself for re- dustry? How well organized and close this actively involved in this community, but I sponding to e-mail? And what e-mail man- industry really is. Most people are willing hope this will change when I graduate at agement tips can you offer? Don’t forget to help each other, and a lot of knowledge the end of this year. is shared freely among the affiliates. The that at least 80 percent of the messages in your inbox are nothing but time consum- conferences are always a good place to You’ve said that attending CAC Amster- meet interesting people. ers. Choose to spend time on them wisely. dam in 2007 increased your enthusiasm How much e-mail do you receive from new for the industry. How did that conference online casinos that say they have the high- You have four sites dedicated to backgam- get you excited about being an affiliate? est conversion, and that they want to work mon and one that provides information Have you attended any conferences since together with you? Or automated e-mail on bonus offers for casino games. Why then? I’ve visited CAC three times, and from webmasters who want to exchange so many backgammon sites? And where have attended both CAP Barcelona and links? Although it is polite to answer each does tommydanger fit into all of this? CAP Amsterdam one time. They always one of them, most are just time consum- During the poker boom, there was a lot of are a great source of SEO knowledge and ing and can easily be ignored. buzz that backgammon could become the the perfect place to get face time with your
GPWA Affiliate Interview Series 56 57
Age: 25 Hometown: Amsterdam, the Netherlands Currently residing in: Amsterdam Favorite food: Tortellini One book everyone must read: The 4-Hour Workweek, by Timothy Ferriss Sites: casinobonusking.com, backgammoninfo.net, tradecrudeoil.net, forexcurrency.org
How do you manage your “to-do” lists? Do Virginity tells the whole story about this If you had to pick five keys to success as an you use any special software to help you self-made man, and shows the possibility affiliate, what would they be, and why? out? No. I am pretty chaotic in my way to both have great success in business and 1. Creativity. Don’t just copy; think about of working. I prefer to work from a list of have lots of fun meanwhile. During my new ways to attract an audience. If you work in my head, instead of written-down internship in South Africa I learned a lot get a great idea that is genuinely differ- “to-do” lists. The great advantage about about the great accomplishments of Nel- ent from the rest, you could be sitting this way of working is that your mind son Mandela, and what an amazing per- on a pot of gold. automatically prioritizes things. The first son he is, so I would definitely add him 2. Dedication. Especially for new affili- “to-do” your mind is thinking of is often to the dinner table. I also would love to ates, be prepared to work hard for it the most important one. have some words with President Obama, until things start to come together. so he will be invited as well. The remain- 3. Get involved. Spend some time at Who do you think is going to win the ing spots I would fill with Charles Darwin communities such as the GPWA. Ev- to hear about his great adventures, and World Cup this summer? And why? Defi- ery minute you put in will be returned Jim Morrison from The Doors because I nitely Holland. It is about time we become times two. Also try to attend a confer- love his music. world champion! We often play the best ence every now and then. football during the tourney, but always 4. SEO knowledge. After all, we all try to forget to take home the cup. Hopefully When you need to get as far away from rank number one in Google. things will be different this year. work as possible, where do you go? Nev- 5. Persistence. Don’t give up when things er really thought about this question. I do not seem to turn your way. If you could sit down to dinner with any think the best way to forget about work and clear my mind for a moment is to do five people, living or dead, who would they sports. I like to play tennis, football or be, and why? Richard Branson is one of squash; this is a great way to relax. my heroes. His autobiography Losing My
GPWA Affiliate Interview Series 58
Janet Brockert | Redbush54
“Always stay positive regardless of how bad things may seem.” E How long have you been working in the bers to be very helpful when I’ve asked industry? What drew you to the business? questions. Plus I learn a lot about the in- I<>@JKIC@M<%:FD I’ve been in the industry for almost two dustry just by reading the new posts daily. years. I found it interesting and liked the possibility that I could work from home. You’ve been working with Robin at Gam- Trak for a year and a half. How is she to What surprised you most about the indus- work with? Don’t be afraid to tell us the try? I don’t know how programs such as truth. She probably won’t even see this! 8KK?<?<8IKF= Grand Privé can say, “We don’t want you At first she had to be very patient because anymore” and close affiliate programs. I knew nothing. I would ask her over and K?<@E;LJKIP Plus the cheating that casinos, etc., do by over how to do something, and each time manipulating payout percentages. she would patiently answer. Now I feel like I’ve grown enough that I can usually What did you do before you joined the handle something without even consult- Age: 55 online gaming industry? For 20 years I ing with her. Hometown: Basehor, Kansas managed a bowling center. I finally de- Currently residing in: Leavenworth, Kansas cided that 70- to 80-hour work weeks Has your husband given in yet regarding Favorite food: Steak weren’t for me. I took about a month off the “3MTA3” personalized plate for your One book everyone must read: and went to work for a hospital in food Chevy Cobalt? And what does “3MTA3” Anything by Robin Cook service. In October 2009 I quit that and mean? No, and all I’m going to say is Sites: gamtrak.com, gamtrak.com/GamTrakForum went to work full-time at GamTrak. write that word down on a piece of paper and then go hold it up in front of a mirror How long do you give yourself for re- and read what it says. If you were starring in a movie, who would sponding to e-mail? And what e-mail you want to play your romantic interest? management tips can you offer? Since If you could sit down to dinner with any Patrick Swayze. I’m the point of call for GamTrak I try not five people, living or dead, who would to let it get too full. Sometimes it can get they be, and why? Oprah, Celine Dion, If you were “stuck” in a city due to travel a little overwhelming but I usually make Alicia Keys, Reba McEntire and Whoopi restrictions, would you be the person myself sit down and don’t get up until ev- Goldberg. I believe these women in their who did everything humanly possible to erything has been taken care of. lives have been to the bottom and risen get back home? Or would you be the per- to the top. son who took some time to go exploring How do you manage your “to-do” lists? and smell the flowers? Oh no – I have got Do you use any special software to help If you had to pick five keys to success as an to get home!!!! you out? Paper and pencil is the best I affiliate, what would they be, and why? can do and hope I don’t lose the paper. 1. Always stay positive, regardless of how What are three things that nobody knows bad things may seem. about you? How much time does it take to keep your 2. Be honest. I have always told the truth 1. I’m obsessive compulsive. sites updated? Since I do the forum I feel even when it got me into trouble. 2. I’m a perfectionist but haven’t quite like it’s never updated. When I first start- 3. You’ve got to have goals. gotten there yet. ed with GamTrak I thought we needed to 4. Find what you need to do the job and 3. Hubby and I are preparing to sell ev- promote everybody and begged Robin to make it something you’re proud of. erything and travel the U.S. via mo- let me sign us up. Now I’m paying for it. 5. Be committed. If you’re not 110 percent torhome. committed then it isn’t going to work What prompted you to join the GPWA, and you might as well not even start. and how has it helped you so far? Robin @E:FIGFI8K@E>9I8E; encouraged me to join the forums to learn. What’s your favorite movie? “Sister Act” I really am a shy person and prefer to re- or “Ghost.” E E I<>@JKIC@M<%:FD 8KK?<?<8IKF= K?<@E;LJKIP @E:FIGFI8K@E>9I8E; E f you know anything about American succeeded in blocking Delaware from al- Surprise, surprise, the NFL and the rest of Isports, you know that baseball is often lowing single-game wagering on sports. the professional sports leagues cried foul. called America’s pastime. But the true They sought an injunction to stop the passion of most sports fans in the United You see, Delaware is one of just four states state, and when they lost, they cried all States is American football, specifically where sports betting isn’t illegal. Under a the way to the Third Circuit Court of Ap- the National Football League. 1992 law, states can allow sports betting if peals in Philadelphia, where they won an injunction to stop single-game The NFL makes millions of dol- wagering. (The court did listen lars every year. Sure, some of to some reason; parlay betting that money comes from ticket was allowed as the court ruled revenues, concession sales and that Delaware could resume merchandising. But the bulk the same betting scheme it had of that money comes from TV in 1976.) contracts. Lots of people watch NFL games. Some are watching Delaware appealed to the Su- because their favorite team is preme Court, but in early May, playing. But there’s also a huge the court announced that it was group of people watching be- siding with the NFL and the cause they’ve got money riding rest of the frauds who are rak- on the outcome. ing in the profits from the in- terest gambling creates in their More money changes hands games, but decrying the prac- (from fantasy leagues, three- tice as “tainting the game.” team parlays and traditional old straight wagers) based on So congratulations, NFL. Your the results of NFL contests than shameless contradictory stance any other league in the United on sports betting wins you a States. More than $90 million spot on the Wall of Shame. No is wagered on the Super Bowl— doubt your love of money would just one game—every year. have you looking to sign an ex- clusive endorsement deal with You would think that the NFL an online sports book if the fed- would welcome a regulated eral government ever decided sports betting environment to to regulate the industry. ensure the integrity of its con- tests. This is a league, after all, that started producing injury reports so that Las Vegas sports books could produce an accurate line for they did so between 1976 and 1990 (only each game. But no, these hypocritical Delaware, Nevada, Oregon and Montana jackasses have done everything in their did so). Delaware offered parlay bets on power to block the expansion of regulated sports in 1976, and the state’s governor, sports betting. The NFL has led the pro- Jack Markell, decided to open up sports fessional sports leagues’ crusade against betting to raise revenue and close a bud- online sports books, and now, they’ve get gap last year. APCW’s Wall of Shame 60 61 Previous Inductees: John Kyl Christel Schaldemose The junior senator from Arizona’s support of This Danish European Parliament member is the UIGEA would be worthy of a Wall of Shame chiefly responsible for the European Parlia- nomination on its own merits. But Kyl’s appearance ment voting — yes it was non-binding, but still on the Wall of Shame didn’t actually occur until he put — 544-36 in favor of a report that would block a hold on several Treasury Department nominees in the formation of a single market for online gam- retaliation for the Obama administration’s decision bling in the EU. Almost as bad as the vote was to delay implementation of the law, putting his own the rampant hypocrisy that ran through the bill. selfish political concerns ahead of the needs of the Betting on sports was really bad, unless you did country. it through a government-run monopoly so the state could get the revenue, in case it was really good. Sheesh. Make up your mind. Grand Prive Casino Group Talk about larceny. This group deserves jeers after shutting down its affiliate program and eliminating Steven Conroy affiliate commissions back in 2008 while keeping its online casinos open for business. Efforts were The Minister for Broadband, Communications and made by the GPWA and others to work with Grand the Digital Economy in Australia compiled a list of Prive and get it to make good on its non-payments to “black list” Web sites last year that the country’s affiliates, but nothing has worked as of yet. ISPs would be required to block from its residents. The list was supposed to be filled with sites related to child porn, child abuse, rape and bestiality, but Russ Hamilton when it was leaked it also included the home pages of dating services, medical practitioners, private The former World Series of Poker Main Event champ companies and – you guessed it – at least 13 poker allegedly profited big time from the “superuser” sites, including Full Tilt, PokerStars and Absolute scandal at UltimateBet. That scandal, chronicled by Poker. the TV newsmagazine “60 Minutes,” allowed certain users to see the hole cards of players at the table. And it gave online poker a black eye when it least needed John Kindt one. Kindt, a professor at the University of Illinois, was quoted last year with a number of attacks on the Steve Beshear gambling industry, including statements such as “widespread gambling gambles with our national The governor of Kentucky decided he could play security by dragging down our national economic moralist for the world when he tried to seize 141 security” and “(online gambling) would set us up online gambling domains because they were for something worse than the sub-prime mortgage “illegal gambling devices.” Apparently, as long as disaster.” his precious Kentuckians were protected from the “evils” of online gambling, he didn’t care that the millions of people out there who wanted to enjoy a Southern District of New York legal pastime without interference might be unable to access their accounts and games. In June of 2009, the SDNY ordered the seizure of $33 million from two payment processors, including Account Services. Then it indicted Douglas Rennick Spencer Bachus on conspiracy charges for bank fraud, money laundering and operating an illegal gambling The reflexively anti-online gambling Congressman business for allegedly processing payments for online from Alabama said in a hearing this year that “McGill casinos and poker rooms with Account Services. University found that one-third of college students who gamble on the Internet ultimately attempted suicide.” Err, one problem, Congressman. “This assertion, Nick Xenophon which is reportedly based upon our empirical research, is not predicated upon any factual evidence,” said At a December 2009 public hearing held by the McGill gambling and addiction researcher Jeffrey L. Productivity Commission in Sydney to discuss the Derevensky. state of gambling in Australia, MP Xenophon said that Australian players who drain their accounts when playing at “illegal online gambling sites” should have the “right” to ask their bank to void their financial transactions. APCW’s Wall of Shame 62 63 This issue’s interviewees care deeply about our industry and are doing their bit to make it work better for all of us. AffiliateWIDE’s Steve Rubin wants to weed out all the “nitwits.” Sarah Psaila MEET THE of betsafe hopes to see a change in the negative feelings certain countries have about online gaming. Industry veteran Aaron O’Sullivan from Jackpot Games is obsessed with AFFILIATE finding better ways to identify and eliminate spammers – and he also owns a castle. Should you be doing business with any of these people? After you read MANAGERS what they have to say, we think you’ll be ready to give it a go! STEVE RUBIN | AffiliateWIDE AffiliateWIDE represents two a family-sized operation with all the how we should effectively be able brands – Black Diamond Casino tools and expertise to position itself to monopolize the Rival market. and Box 24 Casino. Both brands as a prime choice for casino traffic and we are in this for the long haul. are standalone casinos. What Earlier this year, Rival decided to Should the time be right to delve into charge affiliates when their play- are the advantages of promot- other projects, we will not miss that ers played progressives and pass ing standalone casinos for af- opportunity. For now, though, we filiates? What challenges do you have a set goal before we can move on losses from MasterCard pro- face in not offering poker, sports- on to the next phase. cessing issues to affiliates. But books and bingo, like some other AffiliateWIDE announced Box 24 brands do? In an industry with so What distinguishes your two ca- would absorb the MasterCard many different markets and tar- sinos from other casinos in the charges and NOT charge affiliates geted traffic, it only makes sense market? What makes them differ- for progressive play. Why did you that both affiliates and operators ent and unique in comparison to make these decisions? Why were attempt to conquer a particular other casinos powered by Rival you able to split with Rival here? niche before taking on software? I think Box24 and Black And why did you choose to move too many directions at Diamond stand out in particular once. I have never been Black Diamond to Rival? Eating “I would love to due to the way in which the own- an affiliate – nor do I the MasterCard charges was an ership plays such an active role have affiliates, plan to jump down that easy decision even though it was in both player communication road – however, with all a huge financial loss to the com- players and and satisfaction. The owner of the people competing pany. However, this is something these brands has a 24-hour role for traffic, making your- we had prepared for awhile back, operators in what is happening from the top self established within knowing that something like this down in terms of his staff making keeping each one target market is is never too far away. Simply put, sure players are never getting the definitely the best way, there is no reason for affiliates to other informed short end of the stick. The word professionally speaking, get shafted for business estab- “vacation” is not a part of his vo- to prepare yourself for lished between the processing so nothing slips cabulary, and as a result I think the long run as you will companies and the operators. the players can feel the hands-on through the then be more adept in That would be like employees of role of the operator himself. cracks. It would the future at approach- AffiliateWIDE having to chip in ing a new sector within some of their wages because of AffiliateWIDE’s brands run every- also be great if this business. damages to Wael’s [the casino thing completely in house: sup- owner’s] car! This along with the port, processing, retention, etc. the nitwits in In terms of challenges decision not to charge for pro- Up to date, we are the LARGEST, facing us, I look at it as gressive play was a no brainer, this business NON WHITE LABEL, Rival-pow- the exact opposite, really. and Rival knows that we are com- ered group. As an affiliate it only By not focusing on poker pletely in control of all of our own would stop seems logical to promote this type or sports betting, we have company matters, except when of program – assuming the affili- making all of been able to go full speed it comes to issues regarding the ate focuses on the type of traffic to into the casino market software itself. Rival allows op- our lives more which we cater. Once we launch without having to set erators to set their own business Spartan Slots Casino, there will unrealistic goals for our- terms and structure; so for us, it difficult.” be no question about the direc- selves. AffiliateWIDE is makes sense to handle the pro- tion in which we are headed and gressive issue in line with the Affiliate Manager Interview Series Due to space constraints, we could not print the interview in its entirety. The complete text will be posted at gpwa.org. 62 63 other leading software providers in the arms of various governments are always One way to keep affiliates happy is to pay industry. The decision to move to Rival complicating matters and this has a HUGE them on time. What steps has your pro- was a simple one. Based on our reputa- range of effects, the least of which is the gram taken to ensure that they’ll be paid tion within the Rival community and the ability for players to even have a chance on time? And when do your payments go future we saw to really exploit that mar- at getting their deposits through. On the ket, we figured having a completely Ri- other side, we are not helped by some of out? All payments are processed on the val based program with multiple brands the nearsighted and inexperienced opera- first of each month and within a few days would allow us to compete better with the tors who have compromised the reputa- of that, all affiliates have usually received biggest RTG and Vegas Tech affiliate pro- tions of some top-notch programs. their commission (obviously wire trans- grams. Within the U.S. market especially, fers take a few days to arrive). You can re- players are still waiting for a prime casino In terms of solving these problems, I think fer to the “Affiliate Payments” section of group offering another strong option be- we just need to give a good shake to some GPWA and other forums to verify this. sides the RTG and Vegas Tech groups that of these heavily lobbied politicians who have been in the market for years. prefer to cater to moneyed special inter- When the clock hits 00:00 on the first, we ests rather than listen to the voices of the are already starting to process payments; hence the 8 a.m. confirmation of funds re- What are three things every affiliate needs people they are representing. ceived by affiliates. to know about AffiliateWIDE? 1. We are in this for years to come, and go- I also propose a “decency and compe- How long do you give yourself for re- ing about business in only the most ethical tency” test to be administered to anyone manner is the way to ensure this future. wanting to become an operator so that sponding to e-mail? And what e-mail 2. Affiliates are ALWAYS paid on the first we can weed out all the dopes who have management tips can you offer? Now of each month. managed to get gaming licenses. Maybe with everyone getting mail on their mobile 3. You will earn with AffiliateWIDE – GPWA wants to partake in this! phones, rapid e-mail conversations are al- whether you want to or not! ways taking place. If I am not sleeping, I What steps do you take to stop the spam- usually answer within a few minutes – al- What do you think the three greatest chal- ming? Spamming is not completely eradi- though I do find myself on my Blackberry in my dreams, which is very creepy. In lenges facing the industry are right now? cable but the deactivation of accounts def- initely helps. A simple “Stop spamming or terms of e-mail management – ANSWER And what would you do to solve them? else” e-mail usually does the trick, and if them! To affiliates specifically: we know Obviously, across the industry, the long not – see ya! you get tons of e-mail a day, but please, Affiliate Manager Interview Series 64 ContinueD from page 63 even if you are not interested, just give gone. The only time I will make a bet is some time, and mixed with their group- a three-word response so we don’t have with friends over college football – and of ing, it seems like a winning combination to keep bombarding you. “I’m not inter- course during March Madness; but that to make a run for it. ested” usually works. is not really gambling, is it? What is the last book you read? Did you How do you manage your “to-do” lists? Do What advice do you have for someone enjoy it? Why or why not? The last book you use any special software to help you just starting in the industry? Understand I read was Uneasy Lies the Head, the au- out? I stick to Post-its and notepads and the players. From there, you can work tobiography of the late King Hussein of there is no better software than a ball- in nearly every field associated within Jordan. It is definitely a fascinating book, point pen! Seriously, I don’t know how I the business itself. Also, there should be and anyone who is interested in trying to work in this business as I am a techno- a manual for abbreviations – I still find understand Middle East politics has to logically illiterate mutt. myself asking affiliates to what they are read it. referring when they give me a three-letter We discovered you are a graduate of abbreviation! What is your favorite movie? And the University of Oregon, where you why? I am not a movie buff, but I majored in journalism. So how did a would have to say “City of God.” It is congruent with my obsession about good Duck like you end up moving Brazil. into the online gambling industry? Do you miss being on the radio (and If you had a theme song, what would if so, what do you miss most about it be? “I’ll Make Love to You,” by it?)? And why did you move to Israel? Boyz II Men. Let’s not go down that I decided to move to Israel after col- road… lege because I needed to shake some things up in my life and wanted to If you could change one thing about join the Israeli Army as the first step the online gaming industry, what into integrating myself into Israeli society. Sports journalism is still would it be? I would love to have my passion and someday I intend affiliates, players and operators all to have my own sports radio show, communicating equally and keeping but for now, getting my Master’s de- each other informed so nothing slips gree is my main priority. Never did I through the cracks. It would also be imagine that I would be working in great if the nitwits in this business the online gaming industry; however, would stop making all of our lives I needed some shift work to comple- more difficult – that goes for all sides ment my time as a student and as a of the spectrum. result fell into the customer support team of a competitor. From there I If someone is visiting you, what’s the moved into affiliates before taking one place you have to take them to the job at AffiliateWIDE to head up see? I am definitely taking them into the program here. Being an affiliate the middle of the Negev desert in manager is the best job for a Master’s Southern Israel. I think every person student, as dealing with affiliates can If you were at a bar with an unlimited bud- at some points needs to feel like he or she be done 24 hours throughout the day. get, what would be your drink of choice? is the only being left in the world; parts This is a job where set hours do not make I would be drinking beer and chasing it of the Negev will definitely get you there! sense – it is definitely better to be flex- with Arak. For those of you who don’t ible throughout the day, night and early know what Arak is, let me know and I will What are three things that no one knows morning hours! send you a bottle. Pure joy in a bottle – about you? and at a price that won’t break the bank. 1. I played the violin for 10 years. Do you gamble yourself? If so, what 2. I did standup comedy in college and games do you like to play? Were you an Who do you think is going to win the got booed of the stage. online player before getting into the in- World Cup this summer? I would love to 3. I was arrested six times before the dustry? In high school, after seeing the see a team from Africa take it, but I do not age of 21 – everything was expunged, film “Rounders,” I developed a minor think this is the year. Spain’s time has fi- though! poker addiction that showed itself in the nally arrived. This is definitely the finest school cafeteria, but those days are long team the Spaniards have put together in Affiliate Manager Interview Series Due to space constraints, we could not print the interview in its entirety. The complete text will be posted at gpwa.org. 64 “The whole show was awesome and possibly the best I have been to. Best layout and venue to date and the parties were great.” Come to Budapest to work hard and play harder. For more information email [email protected] 66 67 SARAH PSAILA | Betsafe Right now, the first thing people What percentage of your sports with our affiliates put us in a po- see when they visit the Betsafe betting customers cross over to sition to be able to contact any Web site is a promotion for “The poker and casino? What about the affiliate should any problem like this arise, have an open discus- Recruiter.” What is “The Recruit- other direction? Do poker play- sion and discuss the best way for- er”? how long is this promotion ers become sports bettors? What ward, one that will be mutually available? The Recruiter is a about casino customers? As in any beneficial to both parties. competition initiated by Betsafe. other business cross-selling plays com which can be compared to an an important strategic role here How long do you give yourself for extremely well developed refer-a- at Betsafe. We feel (and our stats responding to e-mail? And what friend program. Customers earn prove) that we are in an advanta- points when their friends sign up geous position in terms of cross- e-mail management tips can you with Betsafe. Points then deter- sell as well given that we have offer? I’d like to think that my mine one’s placement on the lead- such a strong and unique sports- response time to e-mail is not er boards where a total prize pool book product. This in turn makes significantly lagged, and while of €350,000 is up for grabs. The cross-selling somewhat easier I do have to prioritize certain e- best Recruiter will drive off from given that experience shows that mail, I do make it a point not to this competition with a brand- it is far easier to encourage cross- leave people waiting for a reply new Porsche! Henrik Person, our sell from sportsbook to poker and for more than 24 hours. Some- CEO, is the mastermind behind casino rather than vice versa. times answers can’t be given but this promo, which will an acknowledgment within 24 run till the end of July. What differentiates the Betsafe hours is essential good-business practice. The key here is organi- “At Betsafe we affiliate program from other affili- In terms of the size of zation! Understanding my busi- pride ourselves ate programs? At Betsafe we pride ness priorities and organizing my business, how do the ourselves on being a company inbox accordingly definitely helps on being a poker and casino units that maintains close contact with me get through my inbox more company that compare to the sports customers and business partners efficiently answering what needs betting at Betsafe? I alike. In the Betsafe affiliate pro- to be answered and delegating maintains must admit that things gram, the dedicated affiliate man- and following up others...rules set at Betsafe over the past agement and efforts made to help up on the basis of these priorities close contact year have gone from our affiliates at an individual level always help, especially when you with customers strength to strength. are key differentiating factors. are faced with over 200 e-mails We are a sportsbook re- That said, we do have a number of after a day or two on leave! and business nowned for having one additional very exciting projects and propositions related to our af- of the strongest offer- In your mind, what’s more diffi- partners alike.” filiate program in the pipeline that ings in the industry for cult, attracting players or retain- the markets we target, will help us further stand out in ing them? I would have to say and our poker and casino prod- the crowd, but the details here are retention! Attracting players is ucts have grown at an astronomi- for me to know – and for the rest understandably important; how- cal rate. Since moving to Ongame of you to find out very shortly! ever, extending CLTV [combined early last year we have managed loan to value] is where both affili- to establish ourselves as one of In your FAQ, you clearly state that ates and operator can really cash the most promising rooms in the Betsafe does not tolerate spam- in. Acquisition is significantly Ongame network and we contin- ming. If Betsafe discovers some- more expensive than retention, ue to exceed all expectations both one is spamming to promote Bet- especially when one considers the internally and externally. Our ca- safe, what steps will be taken to extortionate costs incurred when sino has also enjoyed exceptional employing mass-marketing tech- success, and we now look forward stop the spamming? In adhering niques, which are essential for to launching our second casino to company policy we do monitor brand-building and acquisition at the end of May. Launching a our affiliates’ activity and strive to efforts. But if the budget is avail- crypto casino along with our cur- protect the brand at all costs. Un- able increased acquisition stats rent portfolio from NetEnt will derstandably our affiliates need are easier to achieve. Retention definitely give us that additional flexibility to promote us but we do on the other hand requires far edge and help ensure we have one make every effort to ensure that more intellectual resources and of the strongest casino products the Betsafe brand is safeguarded strategic thinking, but is what will in the industry. at all times. Solid relationships Affiliate Manager Interview Series Due to space constraints, we could not print the interview in its entirety. The complete text will be posted at gpwa.org. 66 67 really allow for long-term profitability and count manager at NetRefer. Prior to that I What advice do you have for someone just mutually beneficial partnerships. was interested in the field and related my starting in the industry? Don’t let anyone Marketing Master’s studies to the online or anything knock you down...hard work How can affiliates help in retaining gambling industry with a specialization in and perseverance pay off in the long run! players? I very much see it as being a joint affiliate marketing. effort between affiliates and operators. If you could have dinner with three other Affiliates need to ensure what they promise Rumor has it that you love Malta. Did you people, living or dead, who would they be their players or subaffiliates is manageable grow up there? What does the world need and why? Jesus Christ – Have a few ques- by the operator, while the operator needs to know and understand about Malta tion here I need to ask the big guy!! Sig- to ensure that the CRM strategy employed – and your love for Malta? I am Maltese mund Freud – Think it’s high time some- is efficient and effective in helping affiliates born and bred. I grew up there most of one analyzed him rather than vice versa!! understand their differentiated player my life but I did spend quite a few years Marc Jacobs – I need a new bag! base so that they may target and achieve studying in England. First things first: results accordingly. Affiliates can also Yes, it exists; no, it’s not part of Italy; yes, What’s the best movie food? And why? contribute to the operator’s understanding the Internet has finally arrived; and no, Chocolate. I’m a woman – chocolate is the of their respective player profiles, we aren’t all related! LOL. But seriously, answer to all my problems and the ideal allowing the operator to manage players Malta is a great place to be...its climate, food for any situation! in the most effective way possible. Sound rich historical background, friendly peo- communication with all parties is key! ple and overall relaxed atmosphere make What is the last book you read? Did you it an ideal home or place to visit! Most of the affiliate managers we talk to enjoy it? It was an academic book read in preparation for my post graduation viva say building trust with their affiliates is Where have you lived in Europe? What – I enjoyed the fact that it backed up my critical to success. how do you go about were your favorite things about the places research findings, but to be totally hon- building trust with your affiliates? Having you lived? How did those places compare est there are far more interesting books I a transparent program with reliable stats to Malta? England and Sweden – both would have rather read. and a strong, dedicated affiliate team be- places proved to be a great experience. hind the scenes are in my opinion the key Living on an island sometimes tends to What is your favorite movie? And why? ingredients. Clearly communicated terms lead to quite a narrow mind frame. Get- This very much depends on my mood... it and conditions that are adhered to are also ting away helped broaden my perspective, could be a chick flick one day and an ac- important if you want to build solid long- and ensured I came to understand that tion-packed thriller another...but “The term relationships with your partners! there is a lot more to life than the sun the Godfather” is a movie that has passed the sea and partying in Paceville! test of time and remains on my hit list... Besides trust, what are the keys to build- that and all other Al Pacino movies! ing successful relationships between af- Time to represent the Scorpios. What is filiates and affiliate programs? Trust is a great about being a Scorpio? What doesn’t If you had a theme song, what would it be? major factor as I previously pointed out, the world understand about Scorpios? I’m And why? “These Are the Days Worth Liv- but to build this trust one needs to ensure not one to go by the books when it comes ing.” I may not always relate to the lyrics efficient internal and external channels of to horoscopes... I do read them ... but only but that song always helps me recharge, communication, operational transparency believe them when it pays me to do so – so refocus and get right back in the game! and an affiliate team that takes the time to I won’t comment much here! listen and understand the current and fu- If you could change one thing about the ture needs of affiliates and their respective Do you gamble yourself? If so, what games online gaming industry, what would it be? player bases. do you like to play? Were you an online I think it would have to be the reputation it has in some countries. What are the three most important attri- player before getting into the industry? I’m not much of a gambler myself...my butes an affiliate manager must have in last trip to Vegas was spent in the shop- If someone is visiting you, what’s the one order to be successful? Persistence, deter- ping mall at Caesars Palace, which goes to place you have to take them to see? Given mination and the ability to work hard and prove this all too well!! I obviously make it Malta’s size, I’d take them to see the whole party harder! a point to understand the products we of- place ... in less than three hours!!! fer and the psychology behind the players How long have you been in the online and the games... but as for money spent gambling industry? Why did you decide online... it’s shopping rather than gam- to enter the field? I actually started work- bling that drains my bank account! ing in gaming three years ago as an ac- Affiliate Manager Interview Series 68 69 AARON O’SULLIVAN | Jackpot Games You’re a serious veteran of the Golden Derby is one of the more If Jackpot Games discovers some- industry. What makes Jackpot popular games at Jackpot Games. one is spamming to promote Games different? To start it’s What is Golden Derby? And why Jackpot Games, what steps will backed by a leading European do you think it is so popular? be taken to stop the spamming? parent company with more than a Golden Derby is Jackpot Games’ E-mail marketing is an accepted decade of experience in live video virtual horseracing game. I think part of the affiliate industry, but and mobile solutions, including a the answer lies in the game’s there is absolutely no place for unique smartphone casino prod- graphics, which really are first- spammers at Jackpot Games. We uct and a Sky channel. We feel like class. Combined with a simple will suspend payment and ulti- we have the best of both worlds: betting slip, generous odds and mately ban those who conduct some fresh and truly different enough detail for even the most unethical e-mail marketing cam- ideas from the parent company, ardent racing punter, and it all paigns, as is stressed in our terms together with a team of experi- makes Golden Derby top gam- and conditions. enced gaming industry profes- bling entertainment. sionals who, while embracing the One way to keep affiliates happy fresh approach, are able to avoid Jackpot Games is currently a no- is to pay them on time. What steps the mistakes often made by new download casino. Are there any outfits trying their hand at the has your program taken to en- gaming industry for the challenges in getting people to sure that they’ll be paid on time? first time. play at no-download casinos that And when do your payments go other properties don’t face? Or is out? We have accounts with ma- “Experience With the affiliate pro- it easier to get players if they don’t jor payment gateways, including has taught me gram, it’s a little more have to download something? Moneybookers and Neteller, and traditional but with a The traditional view is that the we’re always looking to increase that affiliate few personal touches casual player will convert more our e-wallet solutions. We also marketing is that I wanted to adopt readily and play more if the games have traditional banking solutions on taking the role. Ex- are available instantly, whereas through wire transfers. However, about trust, perience has taught me the more serious, dedicated ca- the importance with which we re- that affiliate marketing sino player prefers downloads gard affiliate and player payments transparency is about trust, transpar- and the better graphics associated can be best judged by our parent and personal, ency and personal, flex- with them. In regard to the lat- company’s acquisition of Yes Pay- ible business relation- ter point, I don’t think this is the ments, a fast-growing Internet flexible business ships. So I made sure case. I believe it’s simply because Payment Service Provider that is that the program uses instant play games haven’t had a targeting the global market. This relationships.” a recognized, trusted dedicated casino home and, up will provide Jackpot Games with platform (provided by until now, have been promoted as a unique platform to offer reliable NetRefer) that is able to additional options for players on and quick payments, and allow adapt to the requirements of dif- sportsbooks or poker sites. Also, us to pass on savings to affiliates ferent affiliates. It is that level of with ever-improving Flash tech- and players. We pay affiliates in flexibility in the program that, in nology there is no compromise full within seven working days of my opinion, separates us from our in game quality between instant a new calendar month. competitors. and download versions, and with high-speed Internet bandwidth How long do you give yourself for In terms of transparency: the pro- now available to the majority of responding to e-mail? And what gram has no inactivity clauses, and players around the world, there e-mail management tips can you it has realistic commission tiers is little or no lag between clicking offer? I make responding to affili- that go up to 40 percent. And the and playing a Flash-based game. best part is that you don’t need to ates my top priority and will work throughout the day on replying if have net revenue figures of £15k At Jackpot Games we will be offer- need be, with the exception of the to breach that second level per- ing the full casino service with all period around payments. Nor- centage figure! Naturally, it’s only the benefits of instant-play games. mally affiliates don’t mind a short fair that affiliates can contact the To give the user maximum choice delay then. team for a complete breakdown of we’re also looking at a download- their earnings, too. able version of the casino in the As for e-mail management: the very near future. Yes, that was best tip I can offer is to set up fold- blatant product promotion! Affiliate Manager Interview Series Due to space constraints, we could not print the interview in its entirety. The complete text will be posted at gpwa.org. 68 69 ers and automatic rules so that certain e- People in the online gambling industry the Euro Championships they may have mail instantly populates in logical locations have been known to party. What’s your lost their penchant for bottling it at the big in your inbox. It allows you to find certain best party story? Of the stories I can tell events. Naturally, I’d like to say England messages easily and separates the internal without totally disgracing myself the but I don’t think we’re quite there – they’re e-mail from the external. best one would be the time I’d had a few within a reasonable shout, though. beers and invited the whole bar back to In your mind, what’s more difficult, attract- my locked hotel swimming pool at 3 a.m. If someone is visiting you, what’s the one ing players or retaining them? As a rela- I was caught by security guards after 15 place you have to take them to see? Well, tively new casino the biggest challenge is very fun minutes in the pool – after all I’ve only just moved to Malta, but from recruitment. The challenge lies in building I had nowhere to run to as I was staying what I’ve discovered of the place it would recognition of the brand and positive re- there. I denied everything (I’ve seen the have to be Mdina – the original walled sponses to it. With the latter we’ve already cop shows!) until they showed me fright- fifteenth-century capital in the center of seen a great deal of success; the former eningly clear CCTV footage of me running Malta that has barely changed. What could will come with time and investment. around in my underwear. be better than a place with great views and superb little restaurants in a setting of real atmosphere? What advice do you have for someone just If you were at a bar with an unlimited bud- starting in the industry? Understand the get, what would be your drink of choice? What are three things that no one knows industry; ask questions and learn as much And why? Ahhh, so many to choose from. I as you can from everyone. Having an un- guess it would be Highland Park whisky... about you? Three things?! I’m a pretty derstanding of affiliates, SEO, customer but then I like a Hendrick’s gin and tonic... open person...er...right: relationship marketing, security issues, and of course there’s Bollinger. 1. I own a castle...okay, it’s ruined and payments and so on will allow you to em- shared amongst 300 or so other pathize with affiliates, affiliate managers Who do you think is going to win the O’Sullivans, but it still counts, I reckon. 2. I’m a glider pilot. and the casino staff generally, and allow World Cup this summer? And why? Spain. 3. I support Norwich City Football Club. you to make faster, better and more confi- They’re playing the best football in the Not a massive secret but I’m sure most dent decisions. world at the moment, and given they won people reading this didn’t know that. Affiliate Manager Interview Series 70 71 NEWS ANALYSIS France and the U.K. take a second look at their gambling laws he legal landscape for online gam- The Canal+ Group has about 12.5 million Paddy Power isn’t the only online gaming bling in Europe is changing quick- subscribers to its TV channels, including firm PMU is partnering with. PMU is also T ly, and nowhere are the changes 10.8 million subscribers in France. Among working with PartyPoker to offer online pok- more dramatic than in two of Europe’s the popular Canal+ channels are Canal+ er. In addition to PartyPoker’s new French- largest markets – France and the U.K. and Canal+Sport. Ladbrokes is supplying language site, PartyPoker.fr, PartyGaming GPWA Times Managing Editor Vin Nara- the gambling expertise and technology for also is providing white label poker rooms for yanan has been tracking the changes, and the joint venture. CANAL is providing the the AB Groupe and PMU. Players from all takes a closer look at what’s happening in Canal+ brand, access to Canal+ customers three sites will create PartyPoker’s French each market. and its expertise in operating in France. player pool. The AB Groupe has about 50 million paid subscribers to 15 TV channels, “Canal+ is a brand that is synonymous and is expected to provide some marketing with sport in France,” said John O’Reilly, muscle for the new venture. FRANCE Ladbrokes’ managing director of remote This summer, in time for the World Cup, betting and gaming. “We believe that Like PMU, FDJ, the other half of what France is expected to “liberalize” its online there is an opportunity to build a good will soon be the former French gambling gambling laws and allow non-French op- business in France over time as the mar- monopoly, has been hard at work trying to erators the opportunity to offer their ser- ket and regulation develop.” protect its market position. vices in the second-most populous coun- try in the EU. “Ladbrokes is one of the world’s leading FDJ bought Laverock Von Schoultz (LVS), bookmakers with a strong heritage in this a London-based software provider known For decades, Française des jeux (FDJ) and sector,” added Groupe CANAL+ President for its sports betting technology. In ad- Pari mutuel urbain (PMU) controlled the Bertrand Meheut when the joint ven- dition to offering sports betting, FDJ is gambling market in France. FDJ handled ture was announced. “We look forward partnering with the Barrière Casino to of- the lotteries side and PMU handled horse to working with Ladbrokes to establish fer online poker. Barrière, which operates race betting. But under pressure from the one of the leading betting businesses in 38 land-based casinos in France, Switzer- European Commission, France began the France.” land, Egypt and France, also runs the 3D process of revising its gambling laws last online casino Le Croupier. year. Other sportsbooks are jumping into the lucrative French market as well. Sport- And in an effort to get its new offerings in France’s new gambling law allows opera- ingbet has inked a two-year deal with front of as many eyeballs as possible, FDJ tors to apply for licenses to provide online the Internet version of France’s national has signed a deal with mobile phone and sports betting and online poker. Online paper, Le Monde, which allows Sporting- telecom provider Orange to put FDJ on- casinos are not allowed. As of press time, bet to offer a co-branded sportsbook to line gambling options on Orange’s French the final regulations for the law had not French customers that is accessible from portals. been released. But that hasn’t stopped the sports page on Le Monde’s Web site, several of the industry’s largest operators lemonde.fr/sport. FDJ has also reached an agreement with from striking deals to enter the French TF1, France’s top TV broadcaster. The market. And it hasn’t stopped top indus- Bwin, which pulled out of France in 2006 partnership calls for TF1 to provide a try watchdogs from stating their concerns when two of its executives were arrested games area on the TF1.fr Web site that about the new legislation. there, is creating a sportsbook for France offers FDJ sports betting, poker and lot- as part of a joint venture with L’Équipe, tery games. It also provides opportunities Ladbrokes, which operates Ladbrokes. France’s national sports newspaper. for FDJ to sponsor TV shows that could com and more than 2,700 betting shops be related to their products, like a World in the U.K., Ireland, Belgium and Spain, And anticipating competition from the Cup show. is launching a joint venture with Groupe opening of the market, PMU has part- CANAL+ – France’s top pay TV provider – nered with Paddy Power to get spread bet- Mangas Gaming, which controls Everest that will provide an online betting service ting prices. Gaming and owns Betclic, Expekt and Bet- that is licensed and regulated in France. At-Home, has also announced their inten- tions to get French licenses as well. Ever- France and the U.K take a second look at their gambling laws 70 71 The proposed tax rate for sports betting is 5.7 percent. The proposed tax rate for on- line poker is 1.8 percent. The tricky thing about these tax rates is they’re designed almost like sales taxes, and apply to each euro bet, rather than gross revenue. So in addition to charging a rake, online poker rooms will have to figure out how to add the 1.8 percent “sales tax” into the mix as well. As a point of comparison, online poker companies licensed in Malta have to pay a 5 percent tax on net income. And online sportsbooks pay 0.5 percent tax on the gross amount of bets accepted. In addition to tax rates, online gaming companies face additional hurdles if they intend to operate in France. For online poker, the pool for players is restricted to France. And online gaming services can only be offered to French residents through sites using .fr domains. As of press time, France’s new online gambling regulatory body Autorité de Régulation des Jeux En Ligne (ARJEL) had not announced detailed technical requirements for the online poker rooms and sportsbooks getting ready to enter the French market. The group did indi- cate that it expected to announce those est Poker and Betclic poker will create the company is based – describes the situa- requirements in mid-May. player pool for its French network. tion this way: Mangas Gaming has also signed a four- “The problem with the French bill is that year deal with Métropole Télévision M6 it is laden with rules and regulations that ENGLAND to form an online gaming partnership. in reality make things extremely difficult Mangas will sponsor sports and poker for foreign competitors to enter the mar- When the Gambling Act of 2005 was programs, and in return they’ll be offer- ket successfully. High taxes, limitations passed, and when its regulations on In- ing Internet gaming on M6 Web sites. M6 on the products one can offer plus strict ternet gaming went into effect in 2007, it is the second-most watched private tele- rules on a company’s setup and operations was hailed as “the regulatory model” for vision service in France. are in essence barriers to entry that will in Internet gambling. It created the frame- many cases prove too steep for competi- work for a regulated online gambling in- The common thread among all of these tors to even attempt to surmount. dustry in the U.K. But it still gave online planned entries to the French market is gambling sites licensed outside Britain large operators. Large operators with deep “What this means is that the position of an avenue to access its markets through pockets are poised to take advantage of the FDJ is strengthened, since on one a combination automatically honoring France’s new law. And that’s because it ap- hand the new legislation entitles them to the licenses of EU nations, along with pears that the regulations will make it dif- advertise more and offer more services, Iceland, Liechtenstein, Norway and Gi- ficult for smaller players to succeed there. while at the same time it dissuades the braltar, and of “white listing” other ju- competition from posing a challenge. risdictions for meeting British regula- Ari Last, who works at right2bet – an And the Pièce de Résistance? The change tory standards. (Only four jurisdictions organization dedicated to allowing EU appears under an umbrella of ‘legislative have been “white listed” – Antigua and citizens to be able to bet with whichever progression’ which the French hope will Barbuda, the Isle of Man, Alderney and EU-licensed betting company they wish, get the likes of us, and the Commission, Tasmania.) regardless of in which member state that off their back.” France and the U.K take a second look at their gambling laws 72 The online gambling industry loves the where complaints have not been satisfac- ated from remote betting operations and current British regulatory model. But the torily dealt with). However, as the Com- the remaining £40 million GGY from ca- British government has become unhappy mission does not regulate these opera- sino, bingo and other gambling products. with it, and is looking to make changes. tors, they can only refer enquirers to the regulator in the originating jurisdiction “In addition to adhering to British regula- In April of 2009, Minister of Sport Gerry and cannot investigate the complaints or tory requirements and contributing to re- Sutcliffe asked the Department of Cul- follow up to determine whether the issues search, education and treatment of prob- ture, Media and Sport (DCMS) to assess go on to be resolved. lem gambling in the U.K., U.K.-based the performance of remote gambling operators also pay tax on their betting and regulations and suggest changes. The un- “These enquiries give us a general indica- gaming revenue. Licensed remote betting derpinnings of the government’s unhap- tor of the common problems that exist for operators are also required to contribute piness were clearly outlined in a DCMS British consumers and indicate that some 10 percent of their gross profits towards consultation report released in March people are unaware that they are gam- supporting the British Horseracing In- and included: bling on an overseas licensed website and dustry via the Horserace Betting Levy.” are not protected by British law.” − Lack of consumer protections. The DCMS solution to these prob- − Increase in complaints from lems is to “introduce the need to British bettors. obtain a licence to transact with − No requirement for overseas ju- British consumers and advertise in risdictions to report suspicious “The problem with the the U.K.” betting patterns. − Other EU nations (e.g., France, “This is the Government’s pre- Italy) rejecting a single market French bill is that it is ferred option,” the report reads. approach and adopting a na- “Under this option we would need tional licensing system. laden with rules and to amend the Act and introduce − Most casinos accessed by British a requirement for operators li- consumers were not licensed in censed in EEA member states and the U.K. regulations that in reality Gibraltar to obtain a licence from − Many operators who were the Commission to permit them licensed in Britain have moved make things extremely to transact with British consum- overseas. ers and/or advertise in the U.K. − Fear that emerging European This would therefore apply to all jurisdictions will be lightly difficult for foreign operators who want to operate in regulated. the British market, irrespective − The inability to collect fees from competitors to enter the of whether they want to advertise offshore gambling sites for the their services or not. British horse racing industry. market successfully.” “Operators would be required to The lack of consumer protections demonstrate their ability to meet appeared to be the biggest concern and adhere to the provisions of the for legislators and DCMS. – Ari Last, Right2Bet Act, its secondary legislation and the Commission’s requirements “The Commission does not, of course, The second driving force behind the push in order to be permitted to transact with have a monopoly on good regulation for changes is the sheer lack of operators and/or advertise to British consumers.” – most, if not all, sites targeting British who choose to be licensed in Great Brit- consumers will be subject to some form ain, and the revenue lost because opera- DCMS also wants to develop a more of regulation in their home jurisdiction tors are staying away. streamlined white listing process for ju- – there are different regulatory standards risdictions outside the European Eco- and approaches,” the report reads. “Con- “It is estimated that there are currently nomic Area. But online gaming proper- sumers therefore may experience vary- between 2000-2500 gambling websites ties licensed in a white listed jurisdiction ing levels of protection depending upon worldwide,” the report reads. “The Com- would still have to receive a British license which operator they deal with. mission currently has approximately 150 to accept British players. remote licensees that can offer internet “The Commission receives many enqui- betting, casino or bingo. Of these, fewer At press time, the results of the general ries from British consumers about gam- than 100 are active, consisting of some elections in the U.K. were not known. But bling activity licensed offshore. There large betting operators but mainly small the Tories have been unhappy with the have been enquiries in relation to social betting operators. The Commission’s Gambling Act for some time. And with a responsibility (for example, where con- industry statistics paper for 2008 gives new regulatory scheme being pushed by sumers have been unable to self exclude the remote sector’s gross gambling yield the Labor Party, it’s likely that new online from websites) and unfairness (for exam- (GGY) at approximately £890 million gambling regulations similar to what’s in ple, where winnings are not paid out or with approximately £850 million gener- the consultation paper are on the way. France and the U.K take a second look at their gambling laws