It's going to be very much case by case. If you were 'grey' a few years ago and long since cleaned up - it's likely going to go through with no issue especially the CPA license.
If you are currently a major player in the offshore space, that's where the difficulty arises.
daweller (26 September 2018)
My experience is that every link for "TOP SPORTSBOOKS - US" at Covers is not working and they just keep you on covers.com.
I'm guessing many people either did not know or in some cases may have forgotten the November 1, 2015 deadline to do two things:
NJDGE: Last Chance For Affiliate Compliance
If this is abided by and enforced, then many affiliates should be shut out from even operating.
I suspect that was mostly a scare tactic and targeted towards the affiliates who at that time were trying to have it both ways - actively promoting NJ and offshore. After all, PokerStars got licensed as an OPERATOR in New Jersey after illegally targeting the market for years.
That looks like wishful thinking and it hardly appears or appeared then to have been a bluff to me. There is also no way PokerStars was doing anything considered illegal for a good several years prior to Nov 1, 2015 after Black Friday. If Nov 1, 2015 is not honored, however, then it would be extremely unfair to everyone who did cease and desist within the deadline, submit the certification, and has not promoted what are considered illegal offerings to the US market these past several years since.
The objective is to get rid of the black market, forcing affiliates out of the regulated market would work against that - so I doubt it. But nothing would surprise me!
I doubt there would be any shortage of new people willing to step in who are "11/1/15 compliant" or any need for concern about that. However, I wonder if the reason why covers.com has those links set up is because they already know they will be approved anyway. Do they know something others don't?
The documents NJDGE wanted signed basically required website owners to not only admit to being guilty of previous illegal activity but also agree to stop doing it. Highly doubt anyone signed those. There wasn't even a law cited, that was supposedly broken previously by website owners iirc.
New Jersey does whatever New Jersey wants. You don't like it then stay the hell outta New Jersey!
Though you are right, 'unfair' has never been a concern of the industry as a whole or business in general. **Coughs, SkyBet, Coughs**
Affiliates pay licensing fee's to the NJDGE - do we think a regulator will block people who become compliant and sacrifice their own license revenue's from this - however small? History in the industry indicates that's unlikely.
Let's also consider there are already large affiliates in the market with a New Jersey license who are taking offshore traffic on other sites they publicly own... With few actions taken so far (Thought the ones who were state Geo targeting licensed to NJ and offshore for other pages have received some slaps from what I hear)
Further as MJM points out - if they don't allow the former offshore US affiliates to promote licensed sites (Especially the large ones who dominate the SERPS in the US) - they aren't going to stop promoting offshore - which the NJDGE would very much like to see happen.
This is news to me. Are you sure that whoever is doing that is promoting offshore programs to the US market or which accept US players or bettors though? And New Jersey knows about it?
Regarding wanting to stop US citizens from doing business with offshore sites, here's what I'm inclined to think: now that sports betting is okay in the USA, if I were a bettor not only would going offshore be the last thing on earth I would want to do, but I would never want to do that at all, even if I had done it in the past. I would only want to bet at approved and regulated US sites. So in my view New Jersey could disallow affiliates who are not "11/1/2015 compliant" and such affiliates could try to promote offshore options all they want, but US residents are probably far more likely to want to use approved and regulated US sites anyway.
On the first point - Yes, sadly, 100% sure that some people are doing it, New Jersey aware of it in at least two cases I know of because they issued cease and desists for the website(s) which was promoting both offshore (Out of NJ) and regulated (Within NJ) - no action taken against the 'pure regulated' sites owned by the same companies other than a warning that they would lose license if found to be doing it again after warning.
Either way - same 'company' promoting both markets and still licensed for one web property and not another.
On the second point:
You personally wouldn't - you know the situation as you work in the industry, how many casual players / bettors fully understand the market?
User 1 (Existing Bettor): Offshore bookies aren't subject to the same taxes that onshore are, so the odds are much ''better for bettors'' - New Jersey is well aware of the challenge of getting seasoned Offshore bettors (Who have had more than enough time to find a reliable offshore book) and bring them into the regulated fold.
User 2: (New Bettor) That's without considering that 'new' bettors will also potentially see better lines at offshore bookies. How may people will go to google, search best betting sites, and click out and sign up - without ever understanding the difference between regulated / unregulated books? This is compounded by the fact that unlicensed affiliates do very nicely in the US SERPS for gambling as they are the only ones who have been pushing that for years.
User 3: (New but smart) Does their research and doesn't want to take the 'risk' associated with offshore.
So it will come down to how many of the new users are well informed, sensible, smart people.
I get to quote Men In Black here
''People are dumb, panicky dangerous animals and you know it''
Top Domains (27 September 2018)
Thanks for that interesting rundown.
I think the vast majority of "normal" people are going to want to stick with legal/domestic/regulated, especially new bettors and your category 3. As far as category 1 goes, I think also a good % of them are going to want to be more cautious now even if they would prefer to do whatever they want because people are becoming increasingly aware that there is no such thing as privacy anymore and we live in a new world and new age of "surveillance society." And that includes even if you use a VPN - it's a matter of degree of privacy, but no such thing as full or airtight privacy. That leaves just the diehard renegades.
It's about costs to the operation and value of lines offered to the consumer.
It's much hard for a bettor to regularly make profits at a bookmaker that runs 8-10% juice/vig. compared to a 5% juice/vig. operation.
I will admit the embarrassing truth, I know very little about sports betting, but I get the general idea. That said, I doubt there are many people relative to the population who are so hardcore that they care so much about that. In the US, I'm confident the vast overwhelming majority of people who will now want to go flocking to legal sports betting are just "normal" people who have no desire to get into any of the more complicated aspects beyond "steps 1, 2 or 3" on a scale of 10. How have they been doing it in Las Vegas all these years for instance? Haven't they been doing quite well? Will whatever they are doing not be duplicable online? Once the general population realizes that sports betting is now something they can do in the USA after all these years of "prohibition," the population of "normal people" vs. hardcore experts trying to milk every little nuance is almost certainly going to be like the sands of the seashore compared to the few conch shells scattered about. The "normal" people will probably be perfectly and even very happy with what is available legally, domestically and without too much complication.
TheGooner (28 September 2018)
To each their own - I guess.
You're welcome to target the general population - the "play once a year at Vegas" players, or Kentucky Derby only punters etc.
But they are always going to head to the biggest names, the brightest lights and don't need an affiliate.
I prefer to stay in my world of core sports betting - regular players that look at the lines, the value and wait for movement.
That's my culture - and I think THAT is also where the majority of the market is in sports betting - and where affiliates provide value.
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Oh no, not talking about that at all. I'm talking about people being perfectly happy to bet frequently or regularly without getting into much of the more complicated elements. No doubt many of them betting big amounts too.