After much debate over the role of affiliates for Massachusetts sports betting, the Massachusetts Gaming Commission commissioners voted to waive the April 14 deadline for CPA and revshare model marketing agreements to be made in the Commonwealth.
Operators can extend their relationship with affiliates up to the April 14th date. However, it does not guarantee that this practice will continue beyond that point. Before rev share, CPA or both can be allowed, the commissioners want to assess the impact of affiliates in the marketplace.
The group approved the testing of CPA waters unanimously. Commissioner Eileen O’Brien was the only commissioner to vote against the revenue-share type deals.
“To me, the only thing we could do was to reduce the cost per acquisition model. Then we can see if it is really doing what it was supposed to, which is driving down push marketing,” she stated. “And so, to me, introducing both actually loses an opportunity for us, as agencies, to see the true impact of the method advertising and affiliates.”
“My job is not to make affiliates rich. She added that her job was to maximize profit and minimize risk for the Commonwealth.
O’Brien didn’t see any upside to the revenue sharing waiver. However, Commissioner Nakisha Weber, Chairwoman Cathy Judd Stein were concerned that limiting the scope for some affiliates could have negative consequences for smaller operators, affiliates, minority-owned businesses, and other affiliates.
Karen Wells, Executive Director of MGC, surveyed operators. She found that two operators did not intend to offer affiliates to their clients and was “ignorant to them”.
Wells stated that one of the respondents indicated that they would find it disruptive to do it now. Another indicated that they would be more helpful to do the waiver. The third was neutral, even though they use affiliates.
Many commissioners were influenced by the letter of former Boston Celtic and Gaming Society founder Kevin Garnett along with the comments made by the other co-founder Jaymee Mesler during the affiliate roundtable. Messler said that revenue share deals would negatively impact the company, which focuses on women bettors.
“We are truly grateful that the MGC changed course today. “We were invited because of our unique qualifications, and we are proud that we were the only small business focused exclusively on women who participated in the hearings,” Messler stated to SBC Americasafterwards.
The state is still on track to launch online sports betting starting March 10.
