The negative side of affiliate marketing in the i-gaming industry

Abstract

Through the affiliation channel, several factors may pose a detriment to the iGaming industry. As affiliate marketing is becoming more established as an acquisition strategy in the industry due to the benefits it gives to a company, it can be influenced by other adverse elements. This study aims to identify the factors that may present a threat for an operator, including the fraud types and other vulnerabilities, challenges and risks. Additionally, it evaluates in-house and third-party tracking technology features concerning fraud while discussing the impact and leading consequences of the detrimental factors on the iGaming company. This study also highlights some mitigation approaches. This study is intended to examine the negative side of affiliate marketing in the iGaming industry; semi-structured interviews were considered as the primary qualitative data collection method. A total of seventeen participants who expertise in affiliate marketing within the iGaming environment took part in this research. The results indicated some of the popular fraud activities, such as CPA fraud. Retaining a relationship with an affiliate might be challenging, along with the competitive sphere and dynamic nature of iGaming. The operators might be vulnerable to some of the players who come through the traffic, while the tracking system implemented might have features that expose the system’s vulnerability. The leading consequences were mainly on the return of investment of the company and brand image. One of the main limitations was the limited literature that discusses affiliate marketing within an iGaming company. The study concludes by suggesting that future research might consider exploring a player or an affiliate perspective while also combining qualitative and quantitative data collection methods to further collect reliable data.