New Jersey’s new iGaming affiliate Guidelines released

Those affiliates that are paid a flat amount of money to direct traffic to a website are able to apply for a ‘vendor registration’ while those that have earnings tied to user gaming action or compensation should be registered as an ancillary casino service industry enterprise (CSIE).

The vendor registration classification covers cost per click where an affiliate is paid a flat fee when a user clicks on a banner or link to its website, as well as cost per impression or cost per view where the flat fee is based on the number of people projected to view an advertisement.

In addition, it also covers sponsorship deals where gaming platforms pay a flat fee to an entity to be their official partner, as well as cost per action flat rate deals that include sign up fees, deposit fees, download fees and betting fees.

The ancillary CSIE classification covers cost per action where affiliates are paid based on a defined user gaming action or compensation that is tied to a variable, such as the amount a payer deposits or bets.

This also covers revenue share where the affiliate is paid a percentage of net gaming revenue of coded users, as well as a hybrid situation in which the affiliate earns both a cost per action and revenue share for a coded user.

Elsewhere, the regulatory body also outlined the rules for when a current user refers a friend to a licensed New Jersey site and the platform provider compensates the user a defined flat fee for each referral. The body ruled that no licensure will be required provided the current user receives under US$ 2,500 in a calendar year.

In addition, on the subject of sub-affiliates, the regulator said if a ‘master affiliate’ has an agreement with a platform provider or casino through which the master affiliate receives compensation for referring sub-affiliates, the master affiliate’s licensure is based on the type of compensation it receives, however, if the master affiliate receives a defined flat fee per user the sub-affiliate refers, it would require a vendor registration.

All sub-affiliates are also required to submit their contracts to the regulator and obtain the relevant level of licensure, with all affiliates required to ensure any sub-affiliates they do business with are licensed.

Under this rule, payment by a master affiliate to an unlicensed sub-affiliate or unlicensed payments from the sub- to master affiliate could result in regulatory action. Elsewhere, affiliates are also permitted to switch compensation models between models in the same licensing class, but all new agreements must be submitted to the regulator, through pre-approval is not required before proceeding.

The Division also requires online gaming permit holders and their platform providers to produce monthly reports for the Division’s service licensing bureau, Intake Unit, detailing monies or compensation paid to affiliates.

In addition, all compensation for New Jersey businesses must be based on the contract the affiliate submits to the Division for review. Affiliates may not receive compensation for New Jersey business through customers or relationship outside of the state and any circumvention of this will result in a Division investigation and potential regulatory action.