Study Reveals: Strict Licenses Lead to Harsher Terms for Partners

The online gambling industry is often viewed as a beacon of strict regulation, especially when licenses from prestigious jurisdictions like Malta, the UK, or Gibraltar are involved. However, a new long-term study based on Wayback Machine data brings an uncomfortable truth to light. While players are better protected by these licenses, the business partners of these casinos are coming under increasing pressure. The investigation by Aff.Studio analyzed 963 documented changes across 75 affiliate programs over a decade, painting a bleak picture for B2B transparency.

A paradox has emerged: operators that submit to strict oversight act significantly more restrictively toward their marketers. For programs under strict European licenses, terms were changed 7.9 times more often to the partner's disadvantage than to their advantage. In comparison, offshore programs performed noticeably better with a ratio of 4.7 to 1. Particularly alarming is the increase in clauses that grant operators the right to withhold payments at their own discretion or retroactively cancel commissions already earned.

Numbers and Facts

The statistical evaluation of data between 2015 and 2026 leaves little room for interpretation. In so-called conduct clauses, which determine whether a partner is paid at all, the ratio for regulated providers is as high as 16.1 to 1 against the partners. Offshore providers only reach a ratio of 5.4 to 1 here. Overall, 6.9 out of 10 contract changes moved against the interests of affiliates. No operator category fell below a 69.4 percent share of hostile changes.

A particularly drastic example is provided by the Betsson Group. Between September and December 2024, the company added a clause allowing it to stop the payment of accrued commissions without notice if a program for a specific website or jurisdiction is terminated. According to the study, this also affects work already performed in the past. Twenty-three such retroactive changes were documented, 15 of them at strictly licensed operators.

"That’s the right question, but it collapses two different things: price and power. Rate is a price question — how much you’re paid. Discretion is a power question, whether you get paid at all, on money already earned. Our data says regulated operators aren’t just pricier, they’ve reserved noticeably more power." - Yevgen Zatiychuk, Digital Marketing Lead at Aff.Studio

Background

The reason for this development lies in the nature of gambling licenses. Authorities such as the Malta Gaming Authority (MGA) or the British Gambling Commission focus almost exclusively on player protection, anti-money laundering, and game fairness. The commercial contracts between casinos and their partners fall outside this protective umbrella. Since there are no specific EU rules for this type of service relationship, operators can dictate their terms almost at will.

Interestingly, the study also shows that cost pressure from taxes and compliance requirements in regulated markets cannot be the only cause. While purely commercial rates (such as revenue share or CPA) are expectedly under pressure at regulated providers, the increase in power clauses is three times as high as in the offshore sector. It is therefore less about economic necessity and more about exploiting a contractual power position that is not monitored by any regulatory authority.

Why it matters for German players

For German players active on platforms with a license from the Gemeinsame Glücksspielbehörde der Länder (GGL), this development has two implications. On one hand, it confirms that a license offers a high degree of security for the end customer, as supervision here is extremely strict. In Germany, the rules of the State Treaty on Gambling 2021 (GlüStV 2021) apply, prescribing, among other things, a monthly deposit limit of 1,000 euros via the LUGAS system and a stake limit of 1 euro per spin for virtual slots.

On the other hand, the growing pressure on advertising partners means that reputable information portals might be displaced by platforms that most aggressively cut their terms. If trustworthy partners are no longer fairly remunerated, there is a risk that the quality of player education will decline. German customers should therefore always ensure they only use offers that are on the official GGL whitelist to guarantee that their money and data remain protected despite the harsh business practices in the background.

What it means for GGL-licensed casinos

German licensees are under particular scrutiny. The GGL strictly requires operators to keep their marketing activities clean. Partner violations are directly attributed to the licensee. This partially explains why companies operating in Germany are also tightening their contracts to protect themselves legally. However, the study warns against using compliance as a pretext for withholding funds. Transparency in calculating Net Gaming Revenue (NGR) versus Gross Gaming Revenue (GGR) is becoming a decisive criterion for the long-term credibility of a provider in the German market.