The Future Outlook For US Affiliates By Shmulik Segal CEO Of Media Troopers

The Future Outlook For US Affiliates By Shmulik Segal CEO Of Media Troopers

Like everything related to sports betting in the US, affiliate marketing companies experienced a gold rush when the US Supreme Court struck down the Professional and Amateur Sports Protection Act of 1992 (PASPA) in 2018.

The new market exploded over several years, with the American Gaming Association estimating a fourth straight record year of revenue in 2024, which hit $71.9 billion.

That initial burst of growth for affiliate companies in the US may be over. In 2024, Catena Media generated nearly $47.8 million from its US operations, representing a 35% year-on-year drop compared to 2023. Better Collective, another key player in the US affiliate marketplace, saw its North American revenues flatline at $112 million in FY2024 compared to $113 million generated in FY2023.

However, the Gambling.com Group reported record revenues of $35.2 for the fourth quarter of 2024. It announced it is anticipating 2024 full-year revenues to reach roughly $127 million, a year-on-year growth of nearly 15%.

So what does that mixed bag of results tell us? Although the days of explosive growth are over, the market is certainly not a one-way street. There are still opportunities for companies to adjust and do the right things.

This is no longer a period of continuous growth but a chance for consolidation.

How will the affiliate market be in the next three years?

When affiliate marketing first exploded in the US, several US states legalized sports betting every year. However, Missouri was the only state to legalize sports betting in 2024, bringing the total to 38 states plus Washington D.C.

While there are some major markets like California and Texas to tap into, there simply aren’t enough states left without sports betting to expect the market to continue its significant expansion.

Affiliate marketing is likely to experience a period of consolidation, with more prominent companies likely to acquire smaller operations.

For example, Better Collective closed a deal to acquire Playmaker Capital in February 2024, strengthening its marketing in North America while expanding operations in South America.

Meanwhile, Gambling.com expanded its operations to acquire Odds Holdings, the company behind odds data company OddsJam.

Affiliate companies may also look to expand and offer new and different products alongside traditional marketing services.

One signifier of this trend may be the launch of the new MediaCruiser service from MediaTroopers.

This product provides operators with all MediaTroopers' vetted contacts but lets the operators choose how to conduct campaigns. Using analytics like conversions and AI data, companies can select the right sources to target specific jurisdictions and demographics, using all the tools an affiliate like MediaTroopers has through one platform.

This first-of-its-kind tool might indicate how affiliate companies want to expand and adapt to the consolidated market.

Potential for future growth

Fewer states can still legalize sports betting, but those markets have plenty of potential. Missouri has a population of over six million, is home to six major league teams, and is likely to launch sports betting in the coming months.

Additionally, the states with the two largest populations in the US, California and Texas, have yet to legalize online sports betting. The third largest state, Florida, currently operates under a monopoly from the Seminole Tribe-run Hard Rock Bet, but the Hard Rock Chairman has previously discussed the potential of expanding the market.

Even states most experts thought unlikely to legalize sports betting in the near future, like Hawaii, have shown enthusiasm. A sports betting bill passed the House for the first time in 2025.

Each state would have its own advertising restrictions, which affiliates could help operators navigate, so there is still plenty of depth left in the sports betting market.

There is also the prospect of the iGaming market, which has been much slower in spreading across the US. Only seven US states have legalized online casinos. However, lawmakers in several jurisdictions like Indiana, Illinois, and Wyoming are considering iGaming bills in 2025.

US states have been much more resistant to legalizing online casinos so as not to step on the toes of the land-based casino industry, but a few more dominoes falling could create another avenue for growth for affiliates.

Do affiliates need to worry about federal oversight?

The online gambling industry in the US is facing more scrutiny than ever before, and some of that attention has come from a federal level. For example, the SAFE Bet Act introduced in 2024 intended to restrict betting advertisements between 08:00 and 22:00 and during live sports events.

Additionally, the legislation is designed to stop operators from using marketing tools like bonus bets.

However, President Donald Trump's election may quash any concerns about federal regulation, as one of his key policies is removing as much federal regulation as possible. Much of his early period in power has seen him and his political advisor, billionaire Elon Musk, strip back the funding and powers of federal bodies like USAID and the Department of Education.

Therefore, there is likely to be very limited top-down pressure on lawmakers to enforce more federal oversight of affiliate marketing.

What can US affiliates learn from Europe?

Some gambling markets in Europe have been operating for decades, like the UK industry, which has required all gambling regulators to have a license since 1968. If there’s one lesson US affiliates can learn from experiences in other regions, it is that compliance and meeting regulations are ongoing challenges rather than one-time challenges.

Take the UK as an example. The regulations for advertising now are very different from those in 1968. Those rules continue to change, with a gambling white paper in April 2023 shaking up the industry significantly.

Another example is the model used around Europe for many years, which was based on a few international licensing bodies like the Malta Gaming Authority overseeing sites operating in several countries. However, many countries, like Sweden in 2019, have created markets with local regulators.

The overall message for affiliates here is to not rest on any laurels and to work closely with operators and regulators to ensure compliance.