Why Affiliates Should Work with US iLotteries

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The iGaming space has been changing drastically, particularly over the past year, with stricter compliance and advertising standards in the UK as well as the repeal of PASPA in the US. Not only have there been major regulatory changes in these markets but this year we have also seen the emergence of a new vertical in the US market: iLotteries!

Michigan and Pennsylvania were the first two states to launch affiliate programmes for their iLotteries, both of which Income Access has had the opportunity to work closely with. Collaborating with these state iLottery programmes has helped us to gain great insight into the affiliate perspective of this emerging market. While still very much in its infancy, optimism over the potential of iLotteries is palpable and should merit even greater confidence and investment of resources moving forward. The following are three main reasons why we believe it is a good idea for affiliates to work with US iLotteries:

Reason #1: The Player Value

There are two main characteristics of iLottery players in the US. The first, is that lottery players tend to be repeat customers, making retention rates in this vertical very high. The second is that the market structure encourages even greater player loyalty. Since state lotteries are monopolies in their respective markets, they aren’t competing with other brands for players’ attention.

Both these factors contribute to a very high lifetime value among iLottery players.

Reason #2: The Opportunity

In the United States, 89% of the adult population uses the internet, according to Statista. Moreover, a 2016 survey conducted by Gallup shows that around half of the American population plays state lotteries. That is a massive pool of potential iLottery players that are just waiting to be engaged.

At the moment, only two state lotteries have affiliate programmes. However, other states, such as New Hampshire, have begun moving into the online space and paving the way for digital channels, creating an opportunity for affiliates to tap into these significant player bases.

Reason #3: The Market

Since the repeal of PASPA, the US iGaming space has been increasingly active with regards to legislation, M&A and professional sports leagues entering into partnerships with major entertainment firms.  While this should only accelerate throughout the coming year, at this time there are still very few regulated operators throughout the various states where applicable laws have been passed.

As previously mentioned, iLotteries are beginning to emerge throughout the country, some of which already have existing affiliate programmes. This gives affiliates outside of the US an opportunity to get a foot in the figurative “door” of a market that is growing on multiple fronts and adjust to its current climate ahead of further expansion.

The above are just a few of the many reasons we believe working with US iLotteries is a great idea for affiliates, especially in this post-PASPA climate.  Moreover, it provides global affiliates with an entry point to a US market poised for relentless growth in the coming years.