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How do you do arbitrage gambling?

How do you do arbitrage gambling?

The Quarter at Tropicana in Atlantic City

What is gambling vertical in arbitrage

Gambling is a vertical with online casinos, poker rooms, bookmakers and other similar sites. In principle, this layer can be attributed to any services, one way or another related to gambling and money.

See our interview with: Wynn Resorts’ CIO

Traffic arbitrage in gambling is the attraction of users to advertisers: in casinos, bookmakers and similar services. Advertisers pay you money for each targeted action of attracted buyers. Target actions can be deposit replenishment, registration, scrolling a certain number of free spins, and so on. Due to the specifics of the vertical, it has non-standard payment methods for attracting users. In general, all methods can be divided into two large groups.

Pay per target action – when the advertiser pays a fixed amount for a specific target action. Actions can be different:
  • registration at the casino with email confirmation;
  • making a deposit of at least $10;
  • application installation;
  • qualification and so on.

Arbitrators receive money once after the user has completed the target action, and the advertiser has confirmed this.

This payment is a deduction from all amounts spent by the user. That is, you attract users, and the advertiser then pays you a percentage of all the funds lost by them. Lifetime payments.

Arbitrageurs argue a lot about which payment model is more profitable. When an advertiser pays for a target action, he then receives all the profit from users. But with this payment model, you can predict the level of income, knowing the conversion of your source. When an advertiser donates money using the RevShare model, you earn passive income. But firstly, it is very difficult to predict it: you cannot know who, when and how much money you will lose. Secondly, in most cases, users make 1-2 deposits, lose them and leave, and only a few constantly play and get their good rewards at online casinos.

Fixed Income Arbitrage

What to choose, decide for yourself. Test both models, and then compare earnings – so you will understand what brings you more money. Much depends on the quality of the traffic. For example, with SEO, you can drive to RevShare, and the CPL model will allow you to increase turnover and drive further to the offer from different sources. 

Features of gambling layer in arbitration

The main feature is the payment model, which is not used in shopping, dating and other verticals. It exists only in gambling and betting. In addition to the standard payment for targeted actions – deposits, registrations, installations, and so on – advertisers pay for Revshare. Revshare is a model in which you attract a user once, and then for life you receive a percentage of all the money lost by him in the service.

What is more profitable – payment for targeted actions or by revshare – it’s up to you. Both options are popular in arbitration.

Another feature of gambling arbitrage stems from the nuances of the layer itself. All users who somehow encounter it can be divided into three large groups:

  • Those who play once or twice. In most cases, users do not stay in the casino for a long time: they make several deposits, lose money and leave, and then have a negative attitude towards advertising of gambling offers. Or they decide to try again, they lose again and in the end they are still negative.
  • Permanent. These people play in casinos, poker rooms and bookmakers for fun. Often replenish the account, but mostly in small amounts.
  • Permanent large. There are those who constantly make deposits in casinos or similar sites, but there are very few such people, about 1% of the total mass of users. Usually these are players who earn on bets, slots, slot machines and other gambling games.

The approach to each group should be different. For example, those who play once or twice can be offered a scheme to earn money at the casino. Permanent – a bonus on a deposit or other gift. Permanent large – transparent conditions for withdrawing funds.

Relevant traffic sources for the gambling vertical

For arbitration, you can use several sources of gambling traffic. We will briefly review the main ones.

Advertising networks

This is one of the most popular traffic sources for gambling arbitrage. In advertising networks like Kadam, your ads in different formats are placed on different sites – thematic and not. Formats can be any:

  • teaser ads: illustrations with intriguing text, often with clickbait, that is, exaggeration or false information;
  • pop-ups – pop-up windows that appear as soon as a visitor enters the site, spends a certain amount of time there, or tries to close the page;
  • clickanders – an advertising format in which the user is redirected to the offer website upon any click on the web resource page;
  • native advertising – blocks with ads that are shown in strictly thematic content;
  • banners – vertical or horizontal, static or animated images with a call to action;
  • push notifications – notifications from a browser or applications that do not look like ads and so on.

One of the most popular formats for promoting gambling in advertising networks is push notifications. They can be styled with a personalized message for increased conversions. Or simply shown to all site visitors. Push notifications are effective because they don’t look like advertisements. We tried it and that felt great.

Social media

The Tropicana from the boardwalk

Another popular source of traffic. There are two ways to promote gambling there:

  • Targeted advertising. Targeted ads with the characteristics you choose. For example, of a certain age, from the right cities. Or to those who subscribe to competitor groups. Advertising of online casinos and similar services in many social networks becomes prohibited. Therefore, arbitrageurs use cloaking. In short, it allows you to show one content to social media moderators, and another to real users, and thus advertise prohibited topics.
  • Community advertising. This method is more popular because you do not need to use cloaking. You can buy advertising not through social media exchanges, but directly from community administrators or owners of promoted accounts. For example, make advertising posts with video reviews about the casino or advertise your account with supposedly “casino earning schemes” in Instagram Stories.

In both cases, you can merge traffic directly or preheat it. For example, show a “success story” of a person or offer subscribers a “scheme” by which they can beat a casino or a bookmaker.

Messengers

Among all the messengers, gambling has taken root only in Telegram, and there are almost no advertisements for it in other messengers. This is due to the fact that in Telegram you can create your own channels and promote them.

The scheme for attracting traffic for gambling is approximately the same in all cases:

  • The arbitrageur creates a fake channel and posts on it the backstory, “reviews” from followers, “schemes” of beating the casino.
  • He buys advertising for his channel in others: thematic or not.
  • Users go to the affiliate channel, see the scheme, register via the link and perform the target action.
  • In other messengers, you can use spam, but it is ineffective and takes a lot of time, and the conversion is extremely low. Therefore, it is practically inefficient.
Nobel Prize Winner in Physics Frank Wilczek

A Harvard Medical School research study gathered by Harvard Medical School’s Addictions Department and European gambling group bwin has reported that gambling addiction has remained virtually static over the past few decades despite the major increases in online betting.

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How do you do arbitrage gambling?