WHY PROMOTING SKILL GAMES MAKES $ENTS

Since the recent uncertainty in the US with regards to promoting and actively advertising online gambling, many affiliates have started looking for alternatives to continue earning revenue from gaming sources. Savvy affiliates are investigating skill game portals offering backgammon and gin rummy as well as bingo rooms - as opposed to promoting traditional poker, casino and sportsbook ventures. But how do skill game and soft gaming sites add up against the earning potential that affiliates have been used to receiving in this highly competitive arena? Historically – sportsbook, casino and poker rooms have been outbidding each other and paying higher revenue and bounty deals than any other gaming segment (at very low margins to themselves) - due to the nature and spending habits of their customers - which allow them to offer these type of revenue deals.

The affiliate world is poised for an adjustment – a necessary one, in terms of looking for alternative ways to supplement the foreseen loss of gambling related revenues. Now’s the time for any professional affiliate marketer to spread their “affiliate portfolio” and any risk with regards to potential losses. No-one has actually addressed what the real deal is on skill gaming, how it compares to traditional gambling portals and what the best ways are to promote it online. At this point does anyone truly understand the mindset and true demographic of a skill gamer, the way in which the business model works, the nature of the player and the true potential of revenues that can be earned?

As the affiliate manager of RedHotPartners, the premier skill gaming affiliate program, I’ve taken a look at what the alternative options are, and have uncovered some interesting points to consider when making a decision to spread your risk.

First up is Bingo – a well recognised game and successful form of soft gambling that has been mentioned often as an alternative for affiliates to supplement their revenues. I witnessed this at the well attended Casino Affiliate Convention hosted in Amsterdam earlier this year – where there was an entire session dedicated to Bingo and an interesting discussion detailing the dynamics of the game model. Much of the discussion involved an explanation of how to successfully promote and earn revenue from advertising this form of gambling. Players are predominately female – and there isn’t much complexity in terms of advertising the product and receiving revenues. You pick a site or particular brand that you like, and proceed to drive your traffic there. If the product is effective, bonus incentives and promotions are regularly updated, the brand provides good customer support and an entertaining experience to the end user – you are likely to earn quite good revenues from promoting it. Bingo does not currently have the negative connotations of gambling associated to it. Affiliates should take note however that Bingo is in fact a game of pure chance, and could soon also be tarred with the same brush as casino, poker and more recently sports betting sites in the future.

What about “Skill Games” though?

There are already two types of skill game portals in this arena – traditional skill game portals offering bespoke games and who focus on achieving an online community where gamers can play various branded games for cash, and the “next generation” skill game business model such as GameAccount and Play65. The latter have carved out a unique niche falling right in the middle of the hard core gambling based websites and the more basic - soft gaming versions such as bingo and lotteries.

The difference between the two types of skill game platforms is that traditional skill game portals – such as Bejewelled, Luxor, King.com and WorldWinner - offer a variety of bespoke “soft skill” games such as Bomp Bomp, Duck Pond Dash and Carnival Shootout – games not widely recognised, but which are targeted to a certain type of skill player and demographic (predominately females). GameAccount (The worlds #1 Skill Game Network) and more recently bespoke sites such as Back-gammon.com and RedHotRummy.com are all next generation skill game portals that have a restricted or single game focus and target a specific audience and player demographic, have gone a step further - and taken well recognised games such as Gin Rummy, Backgammon and Black Jack and adapted them into rake based models – similar to poker rooms. GameAccount has pioneered the development in terms of next generation skill game play by offering fast paced action with 64 player sit ‘n go tournaments completing in roughly 45 minutes, as well as promoting the worlds largest black jack tournaments online, where prize pools reach over $170 000. This means that we generate more revenues, and are providing a competitive tournament schedule which makes it comparable to the poker and casino models already recognised by players in the market. This also lends itself to a seamless cross over in gambling type. GameAccount distinguishes itself from other skill-gaming operators by the ability to attract high-staking players and consequently higher revenues per-player. Some GameAccount players have deposited in excess of $132 000 during a 3 month time frame. This is unheard of in traditional skill-gaming portals. GameAccount’s average player generates in excess of $300 in revenue, compared with the widely known figures of $151+ per player for other skill gaming operators.

So - How attractive is it in terms of affiliate revenue from a traditional Sportsbook, Casino and Poker model?

Here are a few key points and a comparison of some of the other revenue models out there - that put “NEXT GENERATION SKILL GAMES” portals at the top of the list when searching for new products to promote to increase your revenue channels:

1. Skill Games are widely considered to be Legal to Advertise in most parts of the US where key quality traffic is effectively retrieved and converted
2. The demographic is in fact predominantly male – GameAccount.com openly advertises that its customer base is in fact 70% male - all of them love the competitive tournaments and fast paced gaming action that is provided in the lobby in comparison to some of the other more traditional ‘softer’ skill gaming portals. The latter tend to cater more towards female players who are generally less prone to bigger game spends. This not only means an easy cross sell on your existing traditional poker, sportsbook and casino marketing channels but also an additional source of revenue.
3. The Games are played person to person (P2P) – so, as there is no house win – either you or your opponent take the prize and the revenue generated for the games portal is in the form of rake per game. The thought of always having the chance of beating your opponent versus attempting the odds at beating a casino’s house odds – is an attractive option for any seasoned gambler and a relatively easy sell.
4. Most importantly and one of the biggest selling points to promoting skill games right now - is the competitive revenue model that is offered. It’s surprisingly attractive! Here is a summary of some of the better known Casino, Poker, Bingo and traditional Skill Game partner programs are positioned:

POKER	CPA	Rev Share
Party Poker	$65 - $75	20% - 25%
Poker Stars	$75 - $300	-
Full Contact Poker	Rates are not advertised	Rates are not advertised
CASINO	CPA	Rev Share
Casino-on-Net	$100 - $300	25% - 45%
Golden Palace	$100 - $300	36%
Vegas Red	$75 - $250	25% - 40%
BINGO	CPA	Rev Share
Gala Bingo	$15	20%
Miss Bingo	No Affiliate Program Offered on their website
Sunshine Bingo	$0	25 – 40%
TRADITIONAL SKILL GAME WEBSITES	CPA	Rev Share
King.com	No rates advertised	No rates advertised
WorldWinner	$0	25%
GameColony	$0	20%
MoneyGaming	$0	20%
REDHOTPARTNERS – The premier Skill Game Affiliate program	CPA	Rev Share
GameAccount.com	$35	25%
RedHotRummy.com	$75 - $85	35%
* Ranking taken from CasinoCity.com website 10 August 2006, rates taken from the companies affiliate webpages

The figures speak for themselves and with increased affiliates coming into the light, more are understanding the finer dynamics of promoting skill games online. A definite change towards promoting skill gaming has already begun!

It’s simply a matter of time before the affiliate community will sit up and take notice of the great revenue potential that is right in front of them. With a host of games to advertise and target to potential and existing clients, it really is easy to get in on the action and start earning more revenue while not having to worry about breaking any rules!