
The online gaming industry continues to grow and is expected to reach $117.5 billion in global revenue by 2025. With this expansion, casino and sportsbook operators constantly look for better ways to attract and manage players. Arguably one of the most effective strategies is having agent networks.
With strict advertisement regulations on online gambling in many countries, agents and affiliates play a key role in bringing in new players and maintaining steady engagement. This guide explains how agent networks work, why they are important, and how you can set up one for your casino or sportsbook.
Let’s get one thing straight: every operator has a unique set of requirements for their agents. However, a typical agent network functions somewhat similarly to an affiliate program, with one key difference: agents have control over players’ accounts (i.e. to place bets on their behalf, deposit/withdraw funds, etc.).
Agents and agent networks are typically people who have an audience that is interested in gambling, but have limited access to casinos and sportsbooks either due to the country’s gambling regulations, or simply lack of smartphones and internet. Hence why this model is widely used in areas like Southeast Asia, the Middle East, Africa, and LATAM.
✔ Agents attract new players and earn commissions based on their activity.
✔ Some agents can recruit sub-agents to expand their reach.
✔ Casinos oversee all transactions to ensure fairness and security.
Higher-ranking agents may have more control. While some agents may focus only on recruiting players, others can also manage lower-tier agents, helping to grow the network.
For players that have little to no direct access to bookmakers or casinos, going to an agent makes gambling easier. The agent handles everything – engaging the players, the bet placement, the payments.
For casinos, managing an agent network is straightforward. Agents work both online and offline, using different approaches to engage players.
As opposed to affiliate marketing, financial transactions in agent networks are made both online and cash. The agent system resembles a properly set hierarchy, where the operator is at the top. The best practice is to always have a Master Agent who manages the lower level agents. This reduces the level of micromanagement that the operator has to do. Naturally, it also means giving more commission to the Master Agent for organizing their part of the hierarchy.
This formula allows Master Agents to engage more agents and players, increasing the traffic flow, and eventually the revenue of the operator. Master Agents can engage other agents with an audience to a newer casino, creating a new offer for the lower level agent’s players. There’s no right or wrong amount of commission though, depending on the market, commission percentages may vary.
It’s crucial to set commissions properly to ensure the operator doesn’t lose money at any level of the hierarchy. In some cases, agent networks have more than five levels. This means that by the time commissions are distributed within all the higher level agents, the operator still has to make some profit.
Important steps to take before entering a certain agent market/region:
The PartnerMatrix Agent Management System gives casino and sportsbook operators the ability to expand their customer base by using agent networks to acquire offline players.
If you are looking to improve your current affiliate program or agent network, or boost your player acquisition and revenue, don’t hesitate to reach out.