Few people are more knowledgeable about the profits that are to be extracted from the gambling industry than the German entrepreneur and iGaming professional, Sebastian Jarosch. Mr. Jarosch is the founder of Mithrillium Media Ltd., a company that he established over a decade ago.
Jarosch’s success can be measured in his years of experience of course. But it is also reflected in the awards that he has won during his iGaming career. Some of these include the EGR Nordics Award for Best Affiliate Programme of 2022, and the SBC Awards Affiliate Programme of the Year that he won that same year.
How has the economics of affiliate marketing in iGaming evolved over the past few years?
Affiliate marketing is way more saturated, competitive, and expensive than it used to be. Driving traffic is much tougher now and operators are much more focused on quality instead of pure volume. Regulation has increased the focus on compliance and responsible marketing. Review platforms like Casino-Groups have to adapt to new realities by becoming more professional.
What are the key drivers of profitability for affiliate businesses today?
Profitability depends strongly on commercial deals, traffic quality, conversion rates, and retention. It’s about understanding the intent of your audience and delivering value to your readers with high-quality content. On top of that, strong SEO, brand recognition, and efficient operations all play a role.
Are traditional models like CPA and RevShare still effective, or are new hybrid models emerging?
Both commission models are still very common, but hybrid deals and flat fees have become more popular. Operators want to ensure they are getting a return on investment, while affiliates aim to cover their costs. The result is more data-driven decision-making based on lifetime value and performance-based incentives.
How do rising acquisition costs impact affiliate strategy and sustainability?
Affiliates are forced to be more selective in terms of traffic sources and keywords. You can’t just chase raw volume anymore. Affiliates need to focus on high-intent traffic from valuable keywords, optimized conversion rates, and player retention. If commissions don’t cover acquisition costs, the affiliate model is not sustainable.
What role does player lifetime value (LTV) play in shaping affiliate–operator relationships?
Operators are mainly interested in LTV because it determines the profitability of affiliate deals. Affiliates that consistently deliver players with high LTVs become much more valuable partners and can negotiate better commission structures.
How can affiliates balance short-term revenue targets with long-term profitability?
By striking the right balance between traffic volume, player quality, and commissions. Charging flat fees and overpriced CPAs may be tempting, but a strong reputation built on mutually beneficial deals is far more valuable in the long run. Long-term profitability comes from building a loyal user base and working with reliable operators.
Do you see operators becoming more selective about the type of traffic affiliates deliver?
Operators are happy to test affiliate traffic, but they monitor results very closely in terms of player behavior and profitability. Volumes still matter, but traffic sources, player quality, fraud prevention, and compliance are more important than ever.
How important is data and analytics in optimizing profitability across different markets?
Analyzing data is essential to understand how each market performs, what type of content converts, and how users behave. With data, affiliates can optimize content, traffic sources, and commercial deals much more effectively.
What risks arise when affiliates focus too heavily on volume rather than player quality?
Low conversion rates, no retention, poor player value, and weak relationships with operators. Depending on your setup, it’s possible to earn commissions, but it’s not a sustainable business model. Over time, operators will reduce deals or terminate agreements altogether.
Looking ahead, how will affiliate profitability models evolve as regulation tightens and competition increases?
Affiliates will be forced to shift further toward quality, compliance, and brand. Collaboration with operators will need to become even closer, while affiliates will focus on better data and efficiency. Profitability depends on attracting the right users with high-quality content that delivers real value.
