As iGaming continues to expand across the US, operators and affiliates are navigating a patchwork of state-by-state regulations, shifting consumer behaviors, and a rapidly maturing responsible gambling framework. Understanding how these pressures intersect is becoming essential for anyone shaping the next phase of American iGaming.
Sebastian Jarosch, founder of Mithrillium Media Ltd and a long-time figure in the space, joins SBC Americas to assess the realities of operating in a market defined by constant regulatory movement. The award winnning executive offers his perspective on the challenges and considerations surrounding best practices in the country.
SBC Americas: How does the fragmented, state-by-state regulatory model in the US shape the way affiliates build their strategies?
Sebastian Jarosch: In a fragmented regulatory model, affiliates have to take a localized approach. Each state has its own taxation, licensing, marketing, and advertising restrictions, which means affiliates must tailor their strategies for each jurisdiction. Essentially, affiliates need to segment their offerings by state under one umbrella or build dedicated websites for each market.
SBCA: What challenges do affiliates face in maintaining compliance across multiple states with different rules and advertising standards?
SJ: Compliance in the US is very complicated, as each state has its own restrictions and advertising guidelines. As compliance becomes increasingly complex, operators have introduced much stricter onboarding processes for affiliates and are becoming more selective with their marketing partnerships. Compliance has also become highly resource-intensive and requires constant monitoring with tools like Rightlander to avoid penalties or blacklisting.
SBCA: How important is establishing local trust in each state, and what methods have proven most effective in doing so?
SJ: Affiliates have to localize their sites in order to establish trust with their audiences. Players respond best to affiliates that understand their local culture, payment preferences, and favorite sports teams. To build credibility, affiliates must invest in localized content, regional influencers, and state-specific promotions.
SBCA: Do you think affiliates need to operate almost like “local brands” within each jurisdiction to succeed, even while scaling nationally?
SJ: Affiliates can either build regional brands dedicated to individual jurisdictions or create localized subpages that focus on state-specific products and advertising rules. Localization is essential for maintaining relevance through regionally tailored content, partnerships, and compliance.
SBCA: How do you manage partnerships with operators that have varying levels of presence across US states?
SJ: It comes down to alignment and working closely with operators to understand their goals and where they want to be advertised. Unfavorable gambling laws or single-operator monopolies can make it difficult for affiliates to build partnerships in certain states. Affiliate partnerships work best in states that allow healthy competition and offer acceptable regulatory frameworks.
SBCA: What role does responsible marketing play in sustaining long-term growth for affiliates in the American market?
SJ: Responsible marketing builds credibility with your audience and supports a healthy iGaming ecosystem. Affiliate sites like Casino Groups to promote licensed operators transparently and communicate risks responsibly.
SBCA: Are players in different states showing different behaviors, and how do affiliates adapt to those local preferences?
SJ: Yes, player behavior varies by state in terms of product preferences, game types, bonuses, and favored sports teams. Affiliates can adapt by using behavioral data to fine-tune their content and offers for each audience segment.
SBCA: What technologies or processes help affiliates stay on top of compliance requirements in multiple jurisdictions simultaneously?
SJ: Automation plays a major role in both compliance and personalization. Tools like Rightlander monitor bonus offers, messaging, and licensing data in real time. Geolocation is also critical to ensure that players receive the correct offers when visiting affiliate sites.
SBCA: Do you see a future where US affiliates will consolidate into larger, nationwide platforms, or will local specialization remain the key to trust?
SJ: Consolidation will bring scale and efficiency, but local expertise will remain the key differentiator that builds player trust. Operators, on the other hand, often prefer larger affiliates for marketing partnerships, as they typically invest more in compliance and can cover multiple jurisdictions.
SBCA: Looking ahead, what will separate affiliates that thrive in the US market from those that struggle with regulation and scale?
SJ: The winners will be those who combine agility, compliance, and personalization. Affiliates that invest in data, localized content, and transparent practices will grow sustainably. Those who fail to adapt to the regulatory patchwork will quickly fall behind.
