EGR Power Affiliates 2020

Welcome to the 2020 edition of EGR Marketing’s annual Power Affiliates feature.

The egaming affiliate space has certainly had it easier. The last 12 months probably feel like a lifetime for some of the businesses in this list.

Affiliates have had to deal with increased regulation in all key markets, including Google algorithm changes which obliterated the value of old websites and stricter than ever marketing restrictions in important territories like Italy and Spain.

The PLCs on this list have tried to cope with a tanking stock market by spending huge amounts of time reassuring hesitant investors and if all that wasn’t enough a global health pandemic has just come along to make life even harder for lead generation giants, especially those in sports betting.

Therefore, the firms on this list deserve more credit than ever.

Power Affiliates 2020 shines a light on the 25 most successful affiliate businesses in the global gambling industry, from those dominating in the Nordics to those eyeing growth across the pond in gaming-friendly US states. A handful still consider the UK as the place to be – even now.

We no longer rank affiliates by vertical, so the 25 compiled companies need to demonstrate a healthy portfolio right across casino and sports betting, remaining agile enough to tap into new trends like esports and versatile enough to switch channels to games enjoying a resurgence in a time of crisis – like poker and lottery, for example.

There are only two new entrants this year which tells you all you need to know about the increasingly challenging landscape for affiliate start-ups, although some fresh-faced firms have absolutely shot up the ranks to mix it up with the big boys at the very top end of the scale.

There are four new faces on the judging panel this year and all of them manage affiliates at massive global gambling operators, including William Hill and Betsson. Each judge was asked to pick their top 10 or 15 affiliate companies, marking every company out of five in five specific criteria, including business/commercial success, appetite for M&A and regulatory/compliance procedures. To be considered, each company had to receive at least two nominations and their total score from all judges was then added up to cement the final rankings.

Our nine judges, who also include consultants and digital marketing experts, were all selected to ensure we had a panel with an unparalleled level of insight and knowledge into the egaming affiliate market. What we are left with is what we believe is a comprehensive rundown of the biggest online gambling affiliates operating in the sector today. Let’s see if you agree. Feedback is welcome!

1. Better Collective (1)

HQ: Copenhagen

Key executive: Jesper Søgaard

Strongest category: Commercial

Final score: 207

They’ve done it again. Better Collective has sealed a hat-trick after topping the Power Affiliates rankings for the third consecutive year. The Copenhagen-based PLC scored 59 more points than its closest competitor and once again finished top of all five ranking categories, receiving a record-high 43 from our judging panel for commercial success. While growth has slowed for several of the larger affiliates in this list, the same cannot be said of Better Collective. A 54% revenue rise in Q3 was followed by a 61% increase in Q4 as the group continued to outmanoeuvre potential headwinds. Coronavirus saw the firm issue a warning over a potential €10m hit to revenue in March, which is only likely to increase in the absence of sport, but a diversified product portfolio, including the recent €34.5m purchase of esports platform HLTV.org ApS, should help to soften the blow. A founding member of UK affiliate trade body RAIG, Better Collective has also pulled its weight from a responsible gambling perspective by investing £470k for a 20% stake in AI-powered RG firm Mindway AI. Better Collective – led by chief executive Jesper Søgaard – has also overtaken Catena Media as the most acquisition-hungry affiliate in the online gaming space, as proven by last year’s $20m double acquisition of US-facing brands Vegas Insider and Scores and Odds. Backers include Polish bookmaking behemoth STS after CEO Mateusz Juroszek invested €1m in the Danish content giant.

2. Catena Media (2)

HQ: Malta

Key executive: Per Hellberg

Strongest category: Operational

Final score: 148

Catena Media cements its runner-up spot this year and remains one of the most successful online gambling affiliates ever, even if the business has lost some of its gloss in recent years. Chief executive Per Hellberg has the unenviable task of sewing a fragmented business together by focusing resources on key assets, after too many expensive and underperforming acquisitions took their toll on the bottom line. The Malta-based firm has not reported a revenue rise since Q1 2019, while Q4 revenue remained relatively flat at -3% in the most recent reporting period. Catena will be hoping the strength of its impressive casino portfolio – including leading brands like AskGamblers and JohnSlots – will help protect against a coronavirus downturn, after the vertical accounted for 59% of revenue in January and February of 2020. Catena appointed former bwin product and portfolio manager Peter Messner as its new CFO in March, while erstwhile PKR chief executive Chris Welch was hired as vice president of sports in January. The affiliate deserves credit for launching responsible gambling affiliate portal Play and Sustain, which ranks operators based on their carbon footprint, charitable causes, responsible gaming and customer service.

3. Raketech (3)

HQ: Malta

Key executive: Oskar Mühlbach

Strongest category: Compliance

Final score: 137

There are no changes to the top three firms this year as Raketech keeps its place on the podium. The Malta-based business will be pleased to see the back of financial year 19 having issued a Q4 profit warning before reporting a 23% revenue decrease. This came after a 15% fall in Q3 as the share price dropped by 16% on the same day. Poor financial performance (albeit on a tough comparative period) saw former CEO Michael Holmberg dismissed and replaced by chief operating officer Oskar Mühlbach. Mühlbach is yet to reveal his plan to reverse fortunes, but they probably won’t have been aided or accelerated by a global health pandemic. Former Catena Media sales exec Klas Winberg has been brought in as CMO and added to an already strong-looking executive board. Raketech is still alive and kicking in the M&A market, having sealed the €1.4m purchase of fellow affiliate network Lead Republik Ltd, which predominately generates revenue from Canada, New Zealand and Germany, meaning Raketech’s revenue from outside the Nordics is projected to reach around 20% of group revenue. Mühlbach said: “This acquisition is ticking a lot of strategic boxes, as it gives us further footprint in markets important for our key partners at the same time as it contributes with technical know-how in the form of a high qualitative technical platform.”

4. XLMedia (4)

HQ: Jersey

Key executive: Stuart Simms

Strongest category: Operational

Final score: 111

XLMedia keeps hold of fourth place for 2020. Former chief executive Ory Weihs was replaced around the same time as the publication of last year’s rankings by Rakuten boss Stuart Simms, who has tried to restore the Jersey-headquartered affiliate firm to growth despite many headwinds. Revenue dropped 10% in H1 2019 after a 23% drop-off in Sweden and a 36% decrease in Germany. In December 2019, Simms pledged to refocus efforts on the core operational base of the business following an in-depth review, but things took a tumble in January 2020 when XLMedia issued a trading update after Google demoted the ranking of its older online casino affiliate websites. Concerned investors saw the share price drop after Simms flagged a dip in revenue and EBITDA, which came to fruition in February after XLMedia acknowledged 107 of its websites had been impacted by Google’s ranking rejig, including 23 tier-one or tier-two sites. WorldRemit’s Iain Balchin was appointed CFO in February, while Loot Crate’s Sarah Clark has been hired as chief transformation officer. Simms has since pledged to accelerate strategic measures that could create a short-term drag on revenue to strengthen the business by creating a stronger and more transparent platform.

5. KaFe Rocks (25)

HQ: Malta

Key executive: Simon Pilkington

Strongest category: Compliance

Final score: 94

Undoubtedly the biggest story in this year’s Power Affiliates list is KaFe Rocks. The Malta-based firm snuck into 25^th place as a new entrant last year but has since cannonballed its way to reach the top five for 2020. KaFe Rocks has gone about its business under the radar, and some business has been built as a result. It has grown from 15 employees to 90 in the last three years and operates around 40 SEO affiliate sites. Former Perform Group head of sportsbook Simon Pilkington is chief executive of the group, having been appointed to the top job in February 2020. The coronavirus pandemic has temporarily derailed his full-time switch to Malta, but the company actively encourages remote working and always has done. Approximately 60% of site content is devoted to casino and 40% to sports betting. Leading brands include Casinos.org and online-slot.co.uk, while the US-facing PlayingLegal.com keeps consumers updated with the latest regulations stateside.

6. Natural Intelligence (9)

HQ: Tel Aviv

Key executive: Nir Greenberg

Strongest category: Commercial  

Final score: 93

Natural Intelligence is a permanent fixture in the Power Affiliates rankings having perfected paid search. The business captures high-value consumers of serious scale and helps to inform their purchases with leading content-based comparison sites such as Top10.com, which provides advice on online therapy services to the best meal delivery providers. The Israeli company specialises in financial services, business services and health and lifestyle, as well as online gaming. Its betterplay.com brand offers reviews right across the gambling spectrum, from casino and online slots to sports betting, poker and bingo. Natural Intelligence also made a big play in the UK sports betting affiliate market with the undisclosed purchase of Tipstrr in December 2019. Tipstrr was co-founded in 2014 by Damien Fearn, Andy Jones and Liam Cooper, and offers sports bettors access to thousands of betting tips via a verified tipster marketplace. Tipstrr was founded in the Midlands and boasts more than 11,000 followers on Twitter.

7. Oddschecker Global Media (8)

HQ: London

Key executive: Toby Bentall

Strongest category: Compliance 

Final score: 89

Oddschecker Global Media is probably the strongest UK sports betting affiliate in this list thanks to its core Oddschecker grid comparison brand. The site is a must-have for any serious sports betting punter concerned with value and continues to evolve as partnering operators drop in and out. Its social media content is engaging, especially in podcast format where no expense is spared on production. Its position in the UK was further strengthened by the 2019 acquisition of WhoScored.com, a football statistics site described as “a fantastic product and brand” by CEO Toby Bentall. Last year’s tie up with The Stars Group brought some much-needed diversification, including into poker with PokerNews.com. The vertical should serve them well in the absence of sports betting due to coronavirus. Oddschecker has enjoyed a three-year reign as the top-ranking search result in online sports betting, ahead of its operator clients, and this looks long set to continue following an 18-month technology project to allow bookmaker odds to update in less than 10 seconds. Having made it through one serious merger, the Oddschecker integration teams will be geared up for more upheaval once Flutter Entertainment seals its £10bn tie-up with The Stars Group.

8. Gambling.com Group (7)

HQ: Malta

Key executive: Charles Gillespie

Strongest category: Compliance 

Final score: 87

Gambling.com Group drops one place this year but comfortably remains a top-10 affiliate firm. Revenue modestly increased 6% in 2019, but the latter part of the year was not kind to the bottom line as Q4 revenue dropped by 30% and NDCs halved as it struggled to manage Google’s update. The US continued to be a main driver of growth for the group after gaining licences from Indiana and approval in Colorado, although coronavirus could seriously impact performance in 2020. CEO Charles Gillespie said the shutdown would have a “meaningful negative impact” on revenue, although sports betting made up just shy of a fifth of total revenue for the first two months of the year. In November 2019, Gambling.com Group hired former Kambi US sales director Max Bichsel to lead the affiliate firm’s expansion efforts in the States, while a $15.5m investment from private equity fund Edison Partners looks to have been secured at just the right time.

9. Racing Post (13)

HQ: London

Key executive: Cian Nugent

Strongest category: Compliance   

Final score: 86

Racing Post has climbed into the top 10 this year after further professionalising its offering under the corporate umbrella of the Spotlight Sports Group. The heritage brand has all but completed its transformation into a digital powerhouse but is also likely to be among the firms hardest hit by the coronavirus pandemic. A total reliance on sport – primarily in horse and dog racing – has seen the group furlough almost 90% of employees in recent weeks while printing of the physical newspaper has been suspended on a potentially permanent basis. The strength of the brand remains its key asset and the B2B arm of the business is not short of partnerships with tier-one operators, including bet365 and Betfair. For Racing Post, the sooner sport returns the better.

10. Livesport (15)

HQ: Czech Republic

Key executive: Richard Hájek

Strongest category: Operational  

Final score: 79

Prague-based Livesport is one of Europe’s biggest sports betting affiliation companies, boasting over 90 million monthly users and more than 75 million app downloads. Its flagship Flashscore.com product is one of the leading providers of live sport updates covering more than 35 major sports. Its Malta-headquartered subsidiary, Livesport Media, includes brands such as OddsPortal.com, Livescore.in and BetExplorer.

11. OLBG (12)

HQ: Bristol

Key executive: Richard Moffat

Strongest category: Operational  

Final score: 75

OLBG has grown into a community of trusted, specialist tipsters across more than 20 sports since being founded back in 2002. 2019 saw the Bristol-based firm take its first steps into the US market as well as developing a desktop app which possesses the same functionality as iOS and Android versions. OLBG has seen more than 900,000 downloads and operates in 16 countries across the world, including Australia, Argentina, Slovenia and Sweden.

12. GiG (5)

HQ: Malta

Key executive: Richard Brown

Strongest category: Compliance  

Final score: 66

GiG has fallen seven places this year as the scope of its affiliate business remains unclear. Former COO Richard Brown inspired significant growth in GiG’s media arm, but he has since become CEO and has bigger fish to fry while conducting a full business review to restore the Malta-based supplier to growth. GiG has sold its B2C-facing business to Betsson, so there will be reliance on affiliate revenue now more than ever. GiG Publishing boasts an extensive network of SEO-driven editorial websites; GiG Traffic generates leads through digital marketing campaigns; GiG Reach harnesses the operator’s CRM technology and GiG Comply monitors advertising campaigns to ensure they are compliant with operator preferences.

13. Checkd Media (17)

HQ: Manchester

Key executive: Jamie Knowlson

Strongest category: Product  

Final score: 60

CheckdMedia has climbed another four places this year and looked to be one of the most stable and profitable UK-based firms on this list – until coronavirus hit. The pandemic has caused significant problems for the sports betting firm, which has had to furlough the vast majority of employees. CEO Jamie Knowlson had been seeking to take a step back from the business amid plans to appoint a corporate chief executive to inspire US growth, but those are now presumably on the backburner. CheckdMedia is the only business in the 2020 Power Affiliates list that performed strongest in the product category, which is testament to the strength of its core FootyAccumulators brand.

14. Game Lounge (6)

HQ: Malta

Key executive: Kevin Ciantar

Strongest category: Operational  

Final score: 59

Game Lounge has solidified its position in the Power Affiliate rankings and continues to make good on its founding mission statement to “transform affiliate marketing for the egaming sector in the Nordics and beyond”. Game Lounge lays claim to a portfolio of affiliate sites across Europe, including its flagship Swedish affiliate site Sveacasino.se. The firm specialises in SEO, casino marketing, loan marketing, slot tracking, video production and esports.

15. Blexr (10)

HQ: Malta

Key executive: Ian Hills

Best performing category: Commercial

Final score: 51

Blexr can consider itself unlucky to fall five places this year. The Malta-based affiliate firm has expanded significantly since last year and boasts an impressive office in Barcelona, as employees split their time between both locations. A full platform revival has reduced reliance on third parties while the group has invested in a new company website and appointed a new PR and branding manager. Head of finance Ian Hills has recently stepped up to take responsibility for day-to-day management of the company as general manager while co-founder Ian McDonnell moves behind the scenes. Brands include casinos.de for gaming and sbo.net for sports betting.

16. Latest Casino Bonuses (11)

HQ: Hong Kong

Key executive: Nikola Zugic

Strongest category: Compliance  

Final score: 50

Following Latest Casino Bonuses’ rebrand of its flagship site to LCB.org in 2018, it has welcomed its 500th official representative on board, launched its own Twitch channel and amped up its viral content readiness. The Hong Kong-based firm, which launched in 2006, has nearly 130,000 active forum members and is arguably the go-to resource for online UK casino players. LCB is also partnered with 75 casinos including the likes of 32Red, Matchbook and Mr Green.

17. Traffic Lab (14)

HQ: Copenhagen

Key executive: Sebastian Agerskov

Strongest category: M&A

Final score: 41

Copenhagen-based Traffic Lab offloaded its Danish SEO business to Cherry-backed Game Lounge in 2020, which sees the latter rank in 14^th place this year instead of Traffic Lab. Traffic Lab is choosing to focus on its core Finnish-facing brand KasinoHai and flagship title Casino Bernie. The firm is planning to use the cash from the sale to expand into markets including Romania and the US, according to CEO and co-founder Sebastian Agerskov. He said: “We believe the future for the company lies outside the Danish borders and we are looking forward to increase our attention on other larger and potentially more profitable markets in and outside of the European Union.”

18. Atemi (21)

HQ: Monaco

Key executive: Richard Skelhorn

Best performing category: Commercial

Final score: 40

Atemi is probably the strongest paid media casino affiliate in the UK which makes its ranking in this year’s list surprising – especially when you consider annual revenue is estimated to be in the region of €50m. The secretive nature of the firm looks set to be changing, as a rebrand to Atemi from its previous name Rise Project could be the catalyst for an IPO. Founder Richard Skelhorn has honed his craft over many years and is an expert in this space, having recently used his knowledge and reach to take aim at a few of the other affiliate companies on this list in a personal blogpost.

19. Clever Advertising (18)

HQ: Portugal

Key executive: Luis Rodrigues

Best performing category: Operational

Final score: 39

Portuguese affiliate business Clever Advertising continues its impressive run in the rankings after securing its spot for yet another year. The firm boasts clients such as bet365, Sky Bet and Caliente and, according to its own website, has 500 million monthly unique visitors, a social media audience of 10 million people and owns approximately 3,000 websites.

20. Livescore (*NEW ENTRY*)

HQ: UK

Key executive: Derren Maggs

Best performing category: Commercial

Final score: 37

London-based Livescore, which was acquired by Gamesys Group in 2018, makes its first appearance in the Power Affiliate rankings this year. Livescore notes that it has 56 million active monthly users in more than 200 territories across the world. The firm also secured a major three-year sponsorship deal with La Liga in July 2019 under which it sponsors the league’s 360° replay camera tool.

21. Casinomeister (23)

HQ: Germany

Key executive: Bryan Bailey

Best performing category: Operational

Final score: 35

Casinomeister has firmly cemented its place back in the Power Affiliate rankings in its second consecutive year, following its absence back in 2018. The German affiliate, which was founded in 1998, is still going strong with more than 60,000 unique visitors to its site each month, which features a forum and egaming news page.

22. Punters Lounge (19)

HQ: UK

Key executive: Paul Ross

Best performing category: Operational

Final score: 33

Punters Lounge keeps its spot for a second consecutive year, once again pointing towards the “watershed moment” of 2018 as the key to its success when it revamped its site architecture and design. Originally founded at the turn of the millennium as a football betting forum, Punters Lounge is aiming to “become the only place for punters to be”.

23. Adbrothers (*NEW ENTRY*)

HQ: Netherlands

Key executives: Cris del Valle Ruiz and Ignacio del Valle Ruiz

Best performing category: Operational

Final score: 21

Dutch firm Adbrothers breaks into the Power Affiliate rankings for the first time this year after launching in 2011. Adbrothers currently operates in more than 25 countries with plans to continue expanding in the pipeline. Clients on the Adbrothers portfolio include Amazon, eBay and Vodafone.

24. Matching Visions (20)

HQ: Malta

Key executive: Dennis Dyhr-Hansen

Best performing category: Commercial

Final score: 18

Matching Visions retains its place in this year’s rankings following its breakthrough into the Power Affiliates list in 2019. The Malta-based affiliate network boasts more than 150 brands as part of its portfolio and has worked on over 1,000 campaigns. The firm has been expanding its headcount this year by searching for a Malta-based affiliate manager, plus business developers and content writers.

25. Moneta Communications (24)

HQ: Manchester

Key executive: Danny Campbell

Best performing category: Operational

Final score: 16

Moneta Communications, founded in 2004, is one of the UK’s oldest sports betting affiliates. The firm’s flagship online portal, Betting Directory, has been running for more than 15 years. In 2020, Manchester-based Moneta is set to launch its latest domain – Betting Odds. Director Danny Campbell also manages GamingUSA, which launched in January 2019, and The Sportsman news media business, which is also based in Manchester.