Sports Betting, A Booming Vertical
Online sports betting is a booming business whose value, according to Data Bridge Market Research, is currently estimated at $76.75 billion in 2021 and is expected to reach $167.66 billion by 2029, registering a CAGR of 10.26% over the forecast period from 2022 to 2029.
Like many online activities, sports betting got a big boost from the 2020 global health emergency that challenged the sports betting industry to find additional sports to add to its betting menu to attract bettors. This enabled the rise of e-sports, such as FIFA and NBA2K, which appeal to traditional sports bettors, while bringing sportsbooks closer to e-sports enthusiasts.
Another factor that has driven online sports betting is technology. Digital apps make sports betting possible on mobile devices, which helps to accelerate growth. Bettors can place their bets online from any location and aren’t limited to any sport. This makes it easier than going to a traditional sports betting facility.
Mobile sports betting also requires minimal technical knowledge. This results in a significant number of the population participating in competitive matches for enjoyment, entertainment, and revenue, attracting large audiences that will act as market drivers and increase opportunities for the sector’s growth rate.
Sports betting has gone from being an add-on in casinos to being ubiquitous.There will always be a sporting event to bet on, no matter the time of year or day. Large sums of money are exchanging hands daily across a wide array of sports. Sportsbooks are multiplying and professional teams and leagues have established direct partnerships with gambling companies. Today, it’s difficult to find a country or a kind of sport that is not involved in this industry of placing bets on the outcome.
Moreover, this vertical is incredibly diverse, to the point that within it several sub-niches can be distinguished such as regular sports betting, fantasy sports, e-sports, and even casino-type games, as well. Bettors can choose from a wide range of sports and types of bets. Some online sportsbooks offer payout bonuses, which can boost your winnings.
Without a doubt, legal sports betting adds an extra note of excitement to sports and increases the fun. In addition to entertainment, they give bettors the chance to make a profit and experience the thrill of having their money on the line.
How Does Sports Betting Work?
Sports betting is a wager of monetary value with the expectation of a prize of greater monetary value, subject to a possible outcome of a sporting event. The outcome can be simple, such as which team will win the game, or more complicated, such as how many points a team will win.
Two entities are required for the sports betting activity to take place. One of them (the sportsbooks) provides the odds and accepts the bets, and the other one (the bettors) will be the one to put their money on the line and bet on a certain event.
The basic premise of sports betting is simply to predict that something will happen during a match or event and risk money on the odds of it occurring. Sportsbooks set the odds on these events based on their probability of happening, allowing you to bet on the side you think will win and the sportsbook essentially takes the opposite of that opinion.
Once a bet has been placed, it is locked and will not be released until a team wins or some other condition is met, at which point the market is settled and winnings are allocated.
Which Sports to Bet on a Sportsbook
Online sportsbooks are available anywhere the Internet can be accessed, but they are also illegal in some parts of the world. Even in places where sports betting is legally restricted, most people can still place bets on online businesses.
There are different types of sportsbooks, which are mainly classified by sport and type of bet. Some sportsbooks specialize in one sport, while others are more generic, offering betting on a wide variety of sports.
The most popular sports that bettors can bet on include football, American football, tennis basketball, baseball, hockey, track cycling, auto racing, golf, cricket, rugby union, rugby league, GAA, horse racing, greyhound racing, mixed martial arts (MMA), UFC & WWE, boxing (personal and amateur), levels NFL, e-sports and even fantasy sports leagues. Sports betting can also prolong non-athletic events, such as political elections and reality TV contests.
At a sportsbook, there are many different sports betting options where you can try your luck. You don’t have to just bet on which team will win the game, but you can bet on the margin of victory, the total number of points scored, as well as many different types of bets.
The following is a brief description of some of the more popular types of sports betting.
Money Line (Straight) Bets
The money line or straight bet is the most common and simplest type of sports betting. When there are two players or teams listed on a money line bet, you pick one player or team to win. If your player or team wins, your bet wins. If they lose, your bet loses.
A point spread is a bet on the margin of victory in a sporting event. When betting on a spread, you are betting on a team’s margin of victory rather than the result.
Since not all teams are equally skilled, oddsmakers use spread betting to level the playing field. The team that is perceived to be stronger (the favorite) must win by a certain number of points/runs/goals to cash your bet. The worst team (the underdog) can lose by fewer than that same number of points, or just win the game.
This is the most popular bet type in basketball and football. In baseball, the spread is called the run line, and in hockey, it is called the puck line.
Totals Bets (Over or Under)
This type of betting is quite similar to point spreads. Total bets focus on the final score of a given game rather than who wins the game. These bets are frequently referred to as an over or under bet because you are betting on a total that goes over or under what the oddsmaker sets before the event.
When placing a total wager, all the bettor is concerned with is the combined score of each team at the end of the game. A bettor can wager on whether or not the combined points/goals/runs scored by both teams will go over or under a predetermined amount.
Parlays are a combination of two or more types of bets (including point spreads, money lines, and over/under totals), tied together for a larger potential payout.
What makes a parlay an attractive option for many bettors is that it is a way to bet a low dollar amount and win a large dollar amount, as your profits get multiplied after each win. The more bets added to a parlay, the greater the risk and the bigger the potential return.
The number of legs (bets) in a parlay, as well as the odds attached to each of those legs, determines how much a bettor can win. However, for a parlay to win, all bets involved must be correct. If you have a four-leg parlay and only three of those bets win, then the entire parlay is graded as a loss.
A teaser is like a parlay in the sense that it is tied to multiple bets. The difference is that it is only for point spreads and is designed to have the same payout as a single regular bet rather than an ambitiously large payout.
Proposition or props bets are an exotic type of wager you place on some unique condition that is defined by each operator separately. A prop bet is not directly tied to the final score or result of the game.
There are virtually endless possibilities for props. You can bet on everything from the total number of points scored by a player in a basketball game to which team will finish with the most passing yards in a football game.
A pleaser bet is the exact opposite of a teaser bet. While teaser works in your favor for a reduced payout, pleaser goes against your favor for potentially larger payouts and improved odds of winning.
By betting pleasers, you will give or sell the sportsbook points on a spread or totals line in exchange for a potentially higher payout. This means that the odds will move in the sportsbook’s favor.
A futures bet is a wager on the future outcome of a sporting event. It may include betting that a team will win the World Series; betting that a country will win the Football World Cup, or betting on the total number of wins by a team.
Futures bets tend to offer greater odds, and thus larger potential payouts, than straight bets, and the odds are constantly changing.
Live betting, also known as “in-play betting,” refers to gambling that occurs after a game has started. This type of bet allows a sports bettor to place wagers as the game is in full swing. Plus, the live betting odds change in real-time, giving you a chance to win money before the game has ended.
It’s important to note that there are more types of bets out there. They may be sports-specific or some other wager types that would prove interesting. The types of bets may have different names in different regions, and some of them are popular in one country, but may also be practically unknown in others.
Is Online Sports Betting Safe?
Online betting is safe, but just like any other type of betting, betting online with real money involves a certain level of risk. However, there are some steps you can take to ensure your safety and that you will receive your money.
- Be careful when selecting a sportsbook. It is important to verify that the website you are choosing is legitimate before placing your money. Scams and frauds are also a concern.
- Invest a little time to ensure that the sportsbook treats customers fairly, has adequate security measures in place to safeguard your personal information, has no hidden fees, and pays out promptly and accurately the winnings requested.
- Review the sportsbook´s offer in detail. This includes reviewing what sports they offer, and the types of bets customers can place. All online sportsbooks accept bets on major sports, but some have limited options for minor sports or events. Bet on sports you’re familiar with so that you know your odds.
- Read and understand the Terms and Conditions of the online sportsbook.These will differ from one sportsbook to another and, although the differences are very subtle, they could significantly affect your betting experience.Therefore, before placing a bet, make sure you know the rules.If you have doubts about any clause, clarify them beforehand with customer service
What Is a Sportsbook Affiliate Program?
Affiliate marketing is one of the most effective ways for gaming companies to effectively advertise their brands. In fact, for many gambling sites, it is the most expedient option given the restrictions of conventional advertising.
Sportsbook Affiliate Programs connect publishers (affiliates) with advertisers (sportsbooks). This type of partnership helps the sports betting business grow, as it is an excellent way to increase brand awareness and reach new audiences that might not be aware of the betting business.
The process requires the affiliate to promote the brand through the media they own (website, blog, social networks, or any other traffic source) whereby they earn a commission for each sale they make or for each customer they send sportsbooks. Therefore, this model not only benefits the sports betting companies by bringing in new punters but also benefits the affiliated partners as they also make a profit.
How Does a Sportsbook Affiliate Program Work?
The operation of a Sportsbook Affiliate Program works is simple. In essence, the process consists of:
- Sign up for the affiliate program
- Drive traffic to the brand's website
- Get paid a commission for the traffic you convert
Sign up for the affiliate program
Signing up for a Sportsbook affiliate program is quite simple, as there are almost no entry requirements. Just follow a few simple steps to get registered and start promoting the brands you have chosen.
Once the account is set up, you will be given personalized links that you can post on social media or publish on your website. These referral links are designed to track every visitor you send to the betting site.
Before posting any sportsbook banners, links, or other promotional material, please make sure you fully understand all terms of service so that you do not do anything that will force you to cancel your membership.
Drive traffic to the brand’s website
Your responsibility when joining an online sportsbook affiliate program is to drive traffic to their portal using all legal means possible. The way this happens is through links, promotional material, and other tools the operator makes available to you and that you place on your blog, social media, or website that will drive your visitors to the bookmaker.
Get paid a commission for the traffic you convert
When someone clicks on a custom referral link, that person is sent to the betting site. If that visitor becomes a customer, online sportsbooks give you a share of the net profit.
The operator pays you a commission according to the previously established agreement. This commission is usually based on the number of clients you send to the brand and make their first deposit or bet.
Commission rates for affiliate sportsbook programs vary depending on the operator and the offer.On the low end, you’ll earn about 30% of the net profit, but with some deals, you can earn 50% or more, usually when you have high traffic or promote a class or event. Some programs allow affiliates to promote a specific event, a bet type, a particular game, etc.
Most companies pay commissions to affiliates monthly. There are several ways in which an affiliate can get paid in a sportsbook affiliate program.The most common ones are Revenue Share (RevShare), Cost Per Acquisition (CPA), Cost Per Lead (CPL), and Hybrid.
If you are wondering how the operator assigns you the referred to the sportsbook and assigns you the correct commission. The answer is very simple, affiliate tracking.
Affiliate tracking is the process of managing and tracking marketing activities, usually using special software and different plugins installed on affiliate websites. The tracking software allows each affiliate to have a unique identifier in the URL, when the customer completes the required action on the brand’s website, the tracking software collects the necessary information to award the commission.
One last point, to make your business truly safe and long-lasting, avoid promoting illegal sports betting sites and partner with licensed operators instead.
Affiliate Reward Methods
The commission rate, percentage, and method of calculation are the heart of any agreement involving some form of monetary compensation.
In affiliate marketing, there are several methods of rewarding partners. The sports betting platform commonly uses one or more of the following:
- Revenue Share
Knowing the ins and outs of these methods will further inform your decisions on which method to choose when joining a particular affiliate sportsbook program. You should always balance these different options to ensure that you maximize the benefits of affiliate marketing.
The Revenue Share model, also known as RevShare, is a commission model in which the affiliate receives a percentage of the revenue generated by the activity of referred customers. It is one of the most widespread models in betting affiliate marketing which can work well for everyone.
Revenue in sports betting is defined as the amount of money a sportsbook retains from total management after paying out winners. Although revenue can be measured using multiple time divisions, it is usually calculated every month.
RevShare is one of the preferred methods, for both affiliates and sportsbooks, due to the high-profit margins, which keeps affiliates motivated to find quality bettors and traffic to the bookmaker’s platform.
The revenue share percentage varies from site to site. Depending on the brand offering this type of deal can go from 30 to 50%, and it can also be progressive, depending on the number of players an affiliate has referred to the operator’s website.
Some programs agree with the affiliate that in a Revenue Share Reward Plan, the affiliate will be entitled to receive a commission for the life of the new referred punter bets with the sports betting operator, until the termination of such agreement.
Under a Revenue Share commission plan, if you find a whale (slang for a high-stakes gambler), you are set to win for years to come.
Cost Per Acquisition (CPA) is a rewards model where sports betting platforms pay affiliates once a bettor has made their first deposit on the operating site. This commission method can work well for affiliates and is less attractive to the betting company as they tend to payout more in CPA rate (e.g., $80) than the deposit needed to qualify (usually around $20), so the operator takes the risk that the bettor will continue to bet with them over time.
One of the advantages of this method is that the affiliate partner will receive a payment for each player who makes a deposit, and if the affiliate keeps bringing in deposit-paying customers, the commission percentage can increase.
However, in an attempt to get quality bettors and returning players, some sports betting providers often reserve the right not to pay the affiliate partners if a player places a bet and then does not return.
As can be expected, the amounts and percentages depend on the region in which the program operates, target groups, type of offer, payment methods, and several other factors.
CPL stands for Cost Per Lead and is a commission model in which the affiliate receives a fixed amount for each lead generated, regardless of whether this lead becomes a customer or not.
Let's remember that in advertising, lead has to do with the contact details of someone interested in a product and who are, therefore, a potential consumer of other products from the advertiser.
In the case of sportsbook affiliate programs, this method requires a gambler to complete a set of predetermined actions, like form filling, signing up for a newsletter, or purchasing a particular product.The operator pays, in this case, not for a sale or a click generated by the affiliate campaigns, but for a lead.
The percentage of commission for CPL is usually low because the sportsbook does not make money immediately. Once the data is delivered to the owner of the service, not all customers will turn into buyers.
This method is suitable if you have a lot of traffic and relevant conversions. But in any case, you must balance it with other options to ensure that you maximize the economic benefits of your traffic.
Hybrid is a commission model that mixes CPA with revenue share. It could be an extremely successful and motivating sports betting affiliate model because the partner has two types of income streams from the same player. It is a flat acquisition fee and a percentage of the long-term revenue generated.
Of course, each rate will be slightly lower, than a straight CPA or straight revenue share.
Some operators also pay you an additional commission for referring other affiliates to the Program. This additional commission is based on a percentage of the commission earned by your Sub-Affiliate(s) and varies from operator to operator.
From the methods described we can conclude the following:
Revenue Share will bring in more money over time if you have a trusted and highly engaged sports betting audience. CPA is the way to go if you are looking for upfront quick payments. If you have a steady stream of quality traffic, then CPL can give you a good boost to your income. The hybrid model allows you to get the best of two types of commissions, serving as a test and then focusing on the more lucrative model.
Finally, remember to check the details of the affiliate program's commissions and payment methods before signing up. It is also essential that you know the terms and conditions of the program.
To avoid disagreements and any problems, clarify any questions with an affiliate manager. Some operators may have hidden charges. This includes transfer deductions, taxes, various penalties, and so on.
Advantages of a Sportsbooks Affiliate Program
There are great reasons to join sportsbook affiliate programs, among which are the following:
- Major Sporting Events
- Variety of Sports Betting
- Great Commission
- Easy to promote
- Lots of Benefits to Grab
Major Sporting Events
All sports disciplines have major events such as matches, races, local and international tournaments, etc., which offer multiple betting options to a considerable audience and generate large profits. In addition,there is a long list of sports that have considerable weight in the sports betting space and attract a significant number of bets. There is a wide and varied offer to provide to your audience.
Variety of Sports Betting
One of the things that make sports betting great is that there are many ways to make money betting on sporting events. The large number of ways to win in sports betting makes fans of this type of attraction engage in the activity. Once you refer a new customer to a secure bookmaker, your referral will continue to bet, and you will continue to collect your commissions agreed with the operator.
Competition among sportsbooks is stiff, so affiliate programs invest heavily in working with marketing partners to drive new signups, which is why affiliate sportsbooks are among the best in the entire gaming market.
Easy to Promote
Sports betting is easier to promote as the sports federations and their giant sponsorships do a huge amount of marketing work.Also, many online sports betting companies sponsor different teams as part of their marketing and strategic expansion.This translates into great support for affiliates.
Lots of Benefits to Grab
Most sportsbooks take care of their customers. These places know very well that the excitement of betting on certain outcomes is increased by the welcome bonuses a punter can receive as a new customer and the rewards or promotions as a regular bettor.
Promotions in any business dedicated to sales have proven to be a very effective bait to substantially increase profits, but in the case of bookmakers, it is used not only to attract new customers and sales but also to retain them in the long term, even when they are on a losing streak. This benefits affiliates as they can earn lifetime recurring commissions if the customer sticks around.
Some sportsbooks even give affiliates the ability to generate promotional codes that can generate more rewarding gaming referrals.
What’s Next After Joining a Sportsbook Affiliate Program?
The affiliate programs reward you appropriately each time your referrals create some profit for the brand, which forces you to take care of some elements of affiliate marketing to generate the traffic that has been promised when joining a sportsbook affiliate program.
Among other elements we highlight the following:
- Create Specialized Content
- Produce High-Quality Content That Adds Value
- Differentiate Your Website from The Competition
- Optimize Your Marketing Efforts
Create Specialized Content
Whatever your business, your website is not complete without content. Specialized content plays an important role as it demonstrates the authority of your website in a certain area, increasing your credibility and attracting potential customers.
The content of your website should be specialized because it acts as a natural part of the buying process of a visitor to your website. Remember that the visitor came to your site, not by chance, but because they are looking for specific information. Therefore, your content must ensure that each visitor finds what they are looking for, whether it is a guide, a recommendation, or even a final purchase.
By creating specialized content, you can be sure that the customers you direct from your website to bookmakers are not only the ones who are likely to become customers but that the customers themselves will find it useful in many ways, such as having a broader knowledge of a certain product.
In other words, your content must enable you to achieve the immediate goal of driving customers to sportsbooks, as well as medium and long-term goals, and it must be close enough to what your audience needs.
Generating specialized content that fits the needs of your audience is not very difficult since your audience is quite homogeneous and hypothetically their interest is focused on everything related to sports betting.
Produce High-Quality Content That Adds Value
This second recommendation is derived from the previous one and allows us to deepen the importance of content.
We have already said that your content must enable you to achieve the intended objectives. While the content should focus on your audience, it should also serve your interests in promoting sports betting.
Your job as a sportsbook affiliate is to help make the brand visible and build its reputation by spreading the word about its quality. But, in most circumstances, your effort will not pay off for online sportsbooks until your traffic translates into conversions for the bookmaker.
High-quality content can mean higher website engagement, greater brand awareness, and increased customer trust. In addition, your content contributes to a more engaged audience and therefore, a much higher likelihood of conversion. Consequently, your success depends on your ability to produce high-quality content that, in addition to engaging your readers and conveying your enthusiasm for the subject matter, encourages them to try the bookmaker's products and services.
Differentiate Your Website from The Competition
Your website is your asset in the affiliate programs. It is the one that will allow you to promote the sportsbooks you are affiliated with, attract attention, and gain the trust of potential customers. The attention and trust of customers are not achieved alone, you must earn it and a good website helps you to achieve it. Make your website stand out, not by design but by its ability to communicate and connect with users.
Good interaction with your audience has a proven track record of success. To differentiate yourself from the competition, tailor your website to the needs of your audience and affiliate marketing objectives. After that, employ design and creativity to take differentiation to the next level.
Optimize Your Marketing Effort
Marketing optimization means adjusting your advertising strategy to maximize its effectiveness and achieve your proposed objectives if they are not being met.
Even if your marketing efforts are producing good results, you should be constantly reviewing your strategy. Optimization is a constant process of measuring and adjusting over and over to continually improve your marketing results.
Keep up to date with the latest news about your brand, new promotional materials, offers, discount codes, and any other information of interest to your audience.
The Future of Sportsbook Affiliate Marketing
Today, the sports betting industry is valued in billions, attracting more operators interested in cashing in on the largest of the subcategories within the gaming vertical. In many places, sports betting is fast becoming a piece of mainstream sports culture. This is working to the benefit of affiliate marketing: all the big sport betting brands are investing in online marketing to promote their business. That poses a huge opportunity for online affiliates and attracts new clients in droves.
As the sports betting industry continues to grow, so will affiliate marketing. This could only be negatively affected if new restrictive regulatory measures on the forms and channels of sports betting promotion are introduced. However, we see that online sports betting is trending towards legalization in most countries.
Only in the United States, one of the world's most restricted markets in the world, legal sports betting has expanded to more than 25 states and is still on the rise as of 2022, and best of all shows no signs of slowing down in the short term.
In addition to the legalization of online sports betting, other elements will act as market drivers and further expand the opportunities for the market growth rate, such as interactive games that are gaining the interest of the young generation, the increasing purchasing power of middle-income groups, and the application of blockchain technologies and other innovations.
Although no one can know what the future holds, and that is part of what makes it so fascinating, we can anticipate that affiliate marketing will continue to influence the future of sports betting and it will do so in many ways, not only by providing that extra support of attracting new customers to sportsbooks.
As more affiliate traffic comes to sportsbooks, there will be a greater demand for affiliate program activities and results, which will have a positive impact on both the growth of affiliate marketing and the sports betting market.