Whether it’s affiliate marketing, banner advertising, or other forms of promotion, the iGaming industry is subject to strict laws and regulations in many countries, particularly those with national licensing systems for gambling operators. These regulations also impact the marketing practices on specific top-level domains (TLDs).
iGaming Explorer, developed by Fonvig Group, operates numerous affiliate sites within the iGaming sector. As a result, we are frequently approached by affiliate partners who wish to collaborate with our popular websites. However, many of these requests violate the local laws and regulations.
This guide will provide you with a deeper understanding of the rules governing the marketing of online gambling and explain why many affiliates must decline partnership opportunities due to the legal requirements in various countries.
Understanding National Licensing Systems for Gambling Operators
Globally, licensing systems like the Malta Gaming Authority (MGA), Curacao eGaming, and Gibraltar Regulatory Authority (GRA) are among the most common and recognized in the iGaming industry. However, while these licenses are valid and respected, they do not grant access to all markets.
For example, in Denmark, a strict gambling law is enforced by the Danish Gambling Authority (DGA). According to this regulation, all operators offering online gambling services to Danish players must hold a Danish license issued exclusively by the DGA. This means that licenses from other jurisdictions, such as MGA, are invalid for targeting Danish players, even indirectly through third parties like affiliate partners running Danish websites.
For affiliates and gambling operators in Denmark, it is illegal and punishable by fines to market non-DGA-licensed gambling sites to Danish players. There have already been cases where the DGA has imposed significant fines on affiliates for violating these rules.
It’s Not Just Denmark
National licensing systems and gambling laws that restrict operators without the required local licenses are not exclusive to Denmark; this is a common practice in many countries worldwide. Here are some examples:
- United Kingdom – Regulated by the UK Gambling Commission (UKGC), known for its strict rules on responsible gambling and player protection.
- Sweden – Regulated by the Swedish Gambling Authority (Spelinspektionen), which requires operators to hold a license to legally operate in the Swedish market.
- Germany – Introduced a national licensing system in 2021 with strict regulations for online casinos, sports betting, and poker sites.
- France – Regulated by the Autorité Nationale des Jeux (ANJ), which issues licenses to operators and enforces strict rules on responsible gambling.
- Spain – Regulated by the Dirección General de Ordenación del Juego (DGOJ), which mandates that operators hold a national license to offer services to Spanish residents.
- Italy – Regulated by the Agenzia delle Dogane e dei Monopoli (ADM), overseeing the licensing and monitoring of gambling activities in the country.
- Netherlands – Introduced a regulated market in 2021 with the Kansspelautoriteit (KSA) as the regulatory authority.
- Belgium – Regulated by the Belgian Gaming Commission, which licenses and oversees both online and land-based gambling.
- Portugal – Regulated by the Serviço de Regulação e Inspeção de Jogos (SRIJ), managing the national licensing system for gambling in Portugal.
- Greece – Regulated by the Hellenic Gaming Commission, which licenses and monitors online gambling operators.
- Romania – Regulated by the National Gambling Office (ONJN), requiring all online operators to have a license to offer their services to Romanian players.
- USA – Has a partially regulated market, with each state having its own licensing system. Key states with regulated markets include New Jersey, Pennsylvania, and Michigan.
These national systems ensure that operators meet local standards for safety, responsible gambling, and fair play, protecting players and maintaining the integrity of the iGaming market in each country.
The Risk of Losing Your Domain and Website
As an affiliate in the iGaming industry, the risks of promoting unlicensed gambling operators go beyond fines; you also face the serious consequence of losing your domain and website—assets you have spent countless hours and resources developing and optimizing. This risk is particularly relevant for websites that use national domain extensions, known as Top-Level Domains (TLDs).
What is a TLD?
A TLD, or Top-Level Domain, is the last part of a domain name, such as .dk for Denmark, .se for Sweden, or .de for Germany. National TLDs are often managed by governmental or semi-governmental organizations that enforce specific rules and guidelines on how these domains can be used. These rules vary from country to country, but most nations require activities on their TLDs to comply with local laws.
How Can You Lose Your Domain?
Websites operating on national TLDs, like .dk in Denmark, are subject to the rules and regulations set by the respective country. If a website violates national gambling laws by promoting unlicensed operators, the consequences can extend beyond financial penalties. The state or the responsible domain authority often has the power to revoke or suspend the domain, effectively shutting down the website immediately.
This can be disastrous for affiliates who have invested years in building traffic, developing content, optimizing SEO, and creating a loyal user base. Losing access to your domain means all that hard work can vanish overnight. Additionally, having your domain shut down can damage your reputation in the industry, making it difficult to regain user trust even if you decide to relaunch on a different domain.
The Role of the State in TLD Administration
Many national TLDs are managed by state authorities that establish the rules for their use. In Denmark, for example, the .dk domain is administered by DK Hostmaster, which works closely with Danish authorities like the Danish Gambling Authority (DGA) to ensure domains are used legally and ethically. If authorities determine that a website is breaking the law, they have the power to withdraw the domain without prior notice, leaving the owner with no means to continue their business.
Consequences and Prevention
To avoid such drastic consequences, it is crucial for affiliates to understand and comply with the national regulations governing gambling marketing in the countries where their websites are active. This includes staying updated on the law, seeking legal advice when necessary, and ensuring that all campaigns and partnerships adhere to the applicable rules.
By taking these precautions, you can protect your website, your domain, and your business from the severe risks associated with marketing unlicensed gambling operators.
Targeting the Right Markets as an Affiliate Manager
As an affiliate manager for an iGaming platform licensed by authorities such as the Malta Gaming Authority (MGA), Gibraltar Regulatory Authority (GRA), or Curacao eGaming, it’s crucial to direct your marketing efforts towards the right markets. Unlike countries with strict national licensing systems, markets without these restrictions offer greater freedom and fewer barriers for promoting online gambling products. Here’s why it’s strategically wise to focus on these markets and the advantages you can gain.
- Access to Markets with Fewer Restrictions: Several countries have not yet implemented national licensing systems or have less restrictive regulations, making them attractive targets for operators with international licenses. In markets like Canada (outside regulated provinces), Norway, Finland, Ireland, and Japan, there are few or no restrictions preventing international operators from offering their services. This allows you, as an affiliate manager, to market your gaming products more broadly with fewer limitations.
- Greater Marketing Freedom and Lower Risk of Fines: In countries without strict regulations, affiliate campaigns can be planned and executed with greater flexibility. You can collaborate with local media, influencers, and social channels without constantly navigating complex legal requirements that dictate how gambling can be marketed. Additionally, the risk of incurring heavy fines or facing restrictions is significantly lower when operating in less regulated markets.
- Lower Barriers to Entry and Faster Market Access: In regulated markets, obtaining the necessary licenses can be a lengthy, complex, and resource-intensive process. By focusing on markets where your existing licenses (MGA, GRA, Curacao) are recognized or unchallenged, you save time and money on legal procedures. This means you can launch new products and campaigns faster, gaining a competitive edge.
- Opportunity to Leverage First-Mover Advantage: Markets like Brazil, New Zealand, and India are experiencing growing interest in online gambling but are still in the early stages of regulation. By focusing on these regions, you can capitalize on being among the first to establish a presence, build brand loyalty, and secure a significant market share before potential regulatory changes tighten the landscape.
- Growth Potential in Emerging and Untapped Markets: Countries like Japan, South Africa, and Mexico offer substantial growth potential with large, untapped online gambling markets. With a strategic marketing approach, you, as an affiliate manager, can exploit these opportunities by tailoring content and campaigns to local preferences, positioning your brand as a market leader quickly.
As an affiliate manager, understanding the legal landscapes of the markets you wish to operate in is crucial. By focusing on countries where your international licenses, such as MGA, GRA, and Curacao, are accepted, you can maximize your reach, minimize legal risks, and tap into significant growth opportunities. It’s all about playing smart, targeting markets with fewer restrictions, and positioning your iGaming platform for success in a dynamic and competitive global environment.
