Affiliate marketing is a highly controversial feature of the sports betting ecosystem. Affiliates often present themselves as independent experts: they rank gambling providers, recommend “best odds,” and offer tips on attractive betting markets. However, their primary source of profit comes from directing players to the websites of the gambling operators with whom they have commercial agreements.
A particularly problematic model is the revenue share arrangement, in which affiliates receive a percentage of the net losses of the players they refer. In other words, when players lose money, a portion of that loss is shared with the affiliate as commission. As a result, the affiliate’s financial interest is directly aligned with players’ continued betting and net losses. This creates a stark paradox: “experts” who claim to help bettors win are often rewarded when those bettors lose.
Key Ideas
1. The core paradox of affiliate marketing in sports betting
The central paradox is that, while affiliates promote themselves as sources of “winning” bets and expert advice, they often earn more when their followers lose. Under a revenue share model, affiliates:
- Direct players to specific sports betting providers via links, banners, or promotional codes.
- Earn commissions when those referred players register, deposit funds, and place bets.
- Receive a percentage of the players’ net losses over time.
Consequently, affiliates can benefit in two ways: by cultivating a positive brand image as trustworthy experts and by receiving financial rewards when players ultimately lose money. This fundamental conflict of interest raises serious ethical and regulatory concerns.
2. Explosive growth in gambling advertising and affiliate marketing
The gambling industry has grown rapidly, accompanied by sharply rising marketing expenditures. In the UK alone, spending on gambling marketing increased from approximately £960 million in 2014 to £1.5 billion in 2018 (GambleAware, 2018). Similar trends have been observed elsewhere; for example, marketing costs in Australia reportedly grew by over 250% in 2017.
Within this broader expansion, affiliate marketing has become one of the fastest-growing categories of gambling promotion. GambleAware (2018) estimated that affiliate marketing accounted for around one-fifth of the UK gambling industry’s overall marketing budget, highlighting how central affiliates have become to customer acquisition and retention strategies.
3. The risks of gambling advertising and affiliates’ role
Gambling advertisements are particularly problematic because of their extensive presence across digital and sports-related platforms and the narratives they promote. Research has shown that sports betting advertising often emphasises themes such as skill, control, and excitement while downplaying or omitting the risks associated with gambling harm (Lopez-Gonzalez, Estévez, & Griffiths, 2017).
Affiliates fit neatly into this environment. They are financially rewarded for directing visitors from their websites or social media channels to sports betting operators. As a result, they may not prioritise an honest, balanced comparison of gambling products. Instead, they have a strong incentive to promote whichever operator offers the most attractive commission structure, potentially at the expense of consumer welfare.
4. Affiliate marketing and social media
Social media is a key channel for affiliate-driven sports betting promotion. Two common types of affiliate accounts are:
- Betting communities, where members share tips, bets, and results;
- Individual tipsters, who present themselves as experts offering daily or premium betting advice.
In both cases, posts frequently include direct links or promotional codes leading to gambling operators’ websites. These links track player acquisition and behaviour, ensuring that affiliates receive commissions for both new sign-ups and the ongoing activity of referred players. Because these accounts often resemble peer communities or trusted experts, followers may underestimate the commercial motivations behind the recommendations.
5. Legal grey areas and disclosure of commercial intent
From a legal perspective, affiliate marketing in sports betting operates on very thin ice. Advertising regulations generally require that marketing communications clearly disclose their commercial intent. When affiliate accounts present as neutral experts or genuine community members, conspicuous disclosure of commercial relationships could undermine their credibility and brand image. This tension creates a grey area in which marketing content can be difficult for consumers to distinguish from impartial advice.
Regulatory approaches to affiliates vary between jurisdictions. For example, Greek legislation requires affiliates to register with the national gambling authority and to act as independent entities. In contrast, UK regulation places primary responsibility for advertising—whether direct or via affiliates—on the licensed gambling operators themselves. In all cases, the underlying objective is to prevent gamblers from being misled into believing that affiliate accounts exist primarily to help them “beat the bookmaker,” when in reality they are commercially motivated intermediaries.
6. Towards responsible affiliate marketing
There have been some moves towards more responsible affiliate practice. In the UK, three leading affiliate companies have created the Responsible Affiliates in Gambling (RAiG) organisation, which aims to promote higher standards in areas such as transparency, compliance, and consumer protection.
However, given the structural conflict of interest embedded in revenue share models and the powerful influence of expert advice on decision-making under financial risk, concerns remain. Research has shown that people tend to place significant trust in expert advice in risky financial contexts (Meshi, Biele, Korn, & Heekeren, 2012). When “experts” profit from their followers’ losses, this trust can be exploited in ways that amplify gambling-related harm.
Selected Citations from Houghton et al. (2020)
- “Affiliate marketing of gambling is unique in the sense that the presentation of affiliate marketing appears to be in direct contradiction to their business objectives.”
- “Affiliates may be viewed as being peers who share a common goal of beating the bookmaker.”
- “The paradoxical presentation of affiliate accounts as being avenues for gamblers to receive expert betting advice, when affiliates working on a revenue share will only profit if the gamblers they refer make a net loss.”
- “Research has demonstrated that people assign greater levels of trust to expert advice during decision-making tasks involving financial risk.” (Meshi, Biele, Korn, & Heekeren, 2012)
- “Affiliate marketers often present consumers with an ‘expert’ comparison of products between different brands. … Concerns arise as to whether such comparisons are entirely transparent and beneficial for the consumer. … Affiliate sites … are actively pushing consumers towards products which benefit their own financial motives.”
External References
- Meshi, D., Biele, G., Korn, C., & Heekeren, H. (2012). How expert advice influences decision making. PLOS ONE, 7.
- GambleAware. (2018). Gambling marketing expenditure in the UK. Available from: begambleaware.org
- Lopez-Gonzalez, H., Estévez, A., & Griffiths, M. D. (2017). Controlling the illusion of control: A grounded theory of sports betting advertising in the UK. International Gambling Studies, 9795 (September), 1–17.