New Jersey DGE Clarifies Affiliate Licensing

The New Jersey Division of Gaming Enforcement (DGE) published a Director’s Advisory Bulletin on the DGE’s website.  It clarified what is allowed for different affiliate classes.  It gave some new privileges to affiliates that operate under a New Jersey vendor license.

Affiliates that promote regulated New Jersey poker and casino sites under a vendor license may get paid in several ways. Vendors may receive payment based on cost per click, cost per impression, flat cost per action (CPA), and sponsorship deals. The DGE’s examples of sponsorship deals include sports teams and concert venues.

The CPA clarification is the most interesting portion of this bulletin. Affiliates that hold a vendor license may be paid for for every user that signs up, deposits, downloads or makes a certain number of wagers. The requirement must be a set amount. The payment to the affiliate that holds a vendor license must also be a flat amount and cannot vary based on the player’s action.

Before this announcement, many vendor affiliates were paid through a monthly media buy.  This was a flat fee for a static advertisement that was paid regardless of the number of players sent by the affiliate.

Varying payment structures are reserved for affiliates that have completed the ancillary license. These affiliates may receive a percentage of the deposit, a fee based on the amount of action given, a percentage of the actual loss, or a combination of any of these. Few affiliates have applied for an ancillary license due to the $2,000 application fee, legal fees and deep background check involved in the process.

This is good new for New Jersey affiliates. CPA deals are popular among many that promote gaming sites and were not specifically allowed until this clarification was released.