Online gambling may soon be legalized once again if initiatives currently in Congress come to fruition. If that happens, many affiliates and networks will celebrate; and Facebook and Zynga’s revenues will grow like crazy.
While many in the performance marketing community have a lot of experience with traditional gambling websites, what will be fascinating is to see how the upsurge in mobile and social marketing creates both new opportunities and new challenges.
In this regard, Facebook is regarded by many as a near perfect platform for the promotion of online gambling, and the big social gaming companies like Zynga are salivating, with up to $5 billion of annual revenues predicted for Zynga by JP Morgan in a recent research note.
Online gambling has a long history as a driver of big profits and hot technology in the performance marketing industry and many publishers took a big hit when the Bush Administration clamped down. Now, Rep. Barney Frank and others are pushing to change things as rumors abound of major lobbying dollars flowing in the right directions.
Facebook is being talked about as being potentially worth $100 billion if online poker and other games are legalized, with hefty earnings multiples attaching to gambling companies and Facebook’s 30% cut of all virtual goods revenues purchased through companies like Zynga.
There’s going to be a huge opportunity for affiliates that crack the code of promoting online gambling on social platforms. And the opportunity will come sooner rather than later given the lobbying efforts of the big casino corporations at Federal level and the Indian tribes at state level. Be ready.