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The New Jersey Division of Gaming Enforcement has expressed the importance of affiliate relations to the growth of its state-run online gambling industry. On Tuesday, it sought to clarify the types of relationships and activity said affiliates can and cannot engage in.
Both flat fee and revenue affiliate models are welcome in the state but must apply for the associated license. Vendor licenses would be assigned to those companies engaging exclusively in flat fee based marketing (a site like Gambling911.com would serve as an example). An auxiliary license will be obtained for all other forms of affiliate marketing such as Cost Per Click, Cost Per Impression and models such as Deposit or Betting Fees. Sub-affiliate deals through super affiliates the likes of Income Access are also welcome.
Affiliates who enter into a revenue share or CPC type arrangement must provide monthly reports to the New Jersey Division of Gaming showing the revenue derived via their respective websites.
New Jersey online gambling affiliates will not be permitted to enter into agreements with third parties located outside the state and violators will be sought out and their license revoked, whether vendor or auxiliary.
The Division of Gaming Enforcement seems to have backed off a previous demand for affiliates to remove any links on their websites to unlicensed operators. At the very least they make no mention of this mandate in their most recent notification.
Most internationally licensed online poker operators pulled out of the New Jersey market immediately after Gambling911.com broke the story that the State Attorney had issued cease and desist letters to both affiliates and operators. Likewise, most affiliates pulled out as well, which was probably not the result New Jersey desired.
Click here to read the PDF Letter.
- Chris Costigan, Gambling911.com Publisher
