“I can’t imagine ever working in another industry”

14.08.2024

Catie Di Stefano, Marketing Director at Smartico.ai and TheAffiliatePlatform, shares insights on her journey in the gaming industry, the U.S. sports betting market, and the role of affiliates, as well as on her new positions and future plans.

As you are slowly becoming a true veteran in the industry, I wanted to ask what were your initial motivations that led you to start your journey with Betsson in 2011 and what keeps you in the broad iGaming industry to this day?

First of all, thank you for having me here! It’s an honor to contribute to US iGamingHub. I entered the gambling industry by impulsively moving from Sweden to Malta at the age of 19 and luckily got a job at Betsson. In the beginning, it was just a fun job on a sunny island, and I stayed for all the friends I made.

But now, after 13 years, I have made the gambling industry my passion. Once I had my kids, I realized that this industry is great for new parents with the flexibility, technology and fast-moving pace. It’s a young industry with endless opportunities where hard work trumps talent, and I’ve had many great experiences to develop and learn from some of the most knowledgeable people in the industry.

I’m very proud of my journey and network, so I can’t imagine ever working in another industry. The goal is to work with gambling for the rest of my life, haha!

Can you tell how an affiliate company can stand out and grow in the U.S. market today? Is keeping up with the competition possible without extensive acquisitions?

Yes, it’s absolutely possible to succeed and grow in the US affiliate market without acquisitions. However, it’s VERY expensive to be an affiliate in the USA, and it takes much longer to become profitable than in many other gambling markets. Most US affiliates require 3 years or more to start earning revenue. To stand out, I suggest utilizing social media and influencer marketing in the USA.

Keep in mind that most North American players have never gambled online, and regulations are very new, so educating the players will have to be a main priority. It’s also very important to differentiate between the states. In addition to the betting and gambling patterns that vary from state to state, it’s crucial to stay updated on the varying regulations in the states. Therefore, affiliates need to treat each state like a separate market.

Excluding regulatory issues of individual states, what actions are affiliates taking or should take in the area of responsible gaming? What responsibility do you think affiliates have in this regard?

I believe all gaming verticals have a duty to implement responsible gambling practices, especially affiliates. As the first contact point for new depositors, affiliates need to educate players on how to implement safety practices such as deciding a budget, utilizing time-limits and taking regular breaks.

Other than that, I think it’s important to educate players on realistic game play. Not only talk about wagering requirements and RTP, but also explain that gaming is a form of entertainment and there are never any guarantees for winning. Gambling education from affiliates will be crucial if we want to change the perception of gambling from the general public.

How do you respond to concerns about the excessive advertising of gambling platforms that are raised from time to time in various states? Can sufficiently precise regulations be a solution, or is it inevitable to have discussions on this issue?

This advertising discussion is not limited to the USA, and we can learn a lot from other international markets on what the solutions and consequences can be. In my opinion, it’s crucial to find a balance between allowing businesses to promote their services and protecting vulnerable individuals from potential harm.

I believe that implementing precise regulations can be an effective solution, such as limiting advertising during certain hours, ensuring ads promote responsible gambling, and restricting ads to appropriate channels. However, I also believe that this will always be an ongoing issue, and continuous discussions will be necessary to adapt to changing attitudes to gambling and ensure regulations remain effective.

The U.S. Sports Betting market seems to be gradually consolidating more and more. How does this affect affiliate companies operating in the United States?

The gradual consolidation of the U.S. sports betting market will significantly impact affiliate companies in the future, as fewer operators due to acquisitions will naturally mean limited opportunities for new affiliate partnerships.

However, I believe that this trend also presents opportunities. Affiliates that build strong, strategic partnerships with the remaining larger players can benefit from more stable and potentially more profitable relationships. Additionally, a more consolidated market may lead to standardized regulatory requirements, simplifying compliance and operations for affiliates operating across multiple states.

To succeed, affiliate companies need to innovate and adapt to each state individually. Diversifying your affiliate operations is also important, such as reporting on niche markets, enhancing the quality of your content, or leveraging new marketing technologies to give better value to both the betting companies and their audience.

In the OSB market, there has so far been a kind of pressure among operators to be present in newly launched markets from day one. A slightly different path seems to be followed by bet365, whose actions show a lot of patience. Do you think that for second-tier operators, presence from day one on a newly regulated market should be the most important?

Well, this rush to enter early can offer some advantages. For example, securing market share, building brand recognition, and acquiring a substantial customer base ahead of competitors can be very beneficial.

However, regulatory uncertainties in new markets can also be risky. The high initial costs of entry, such as marketing costs, infrastructure, and compliance, can be very expensive. Additionally, the competitive pressure to enter early can lead to big competition and potentially lower profit margins. Although many states have regulated sports betting since 2020, we have seen a handful of operators that have not succeeded and have been required to withdraw from the market.

Bet365’s strategy is very different from the big North American OSB companies. By waiting with their launches, Bet365 can thoroughly understand the market dynamics and regulatory landscape before they enter, which allows for more informed decision-making and optimized resource allocation. This approach can lower the risks and lead to more sustainable growth in the long term.

For second-tier operators, the decision to go live from day one in a newly regulated state should be carefully considered. While early entry can be very beneficial if done right, the operators still have to consider their resources and risk tolerance. It might be more safe for them to follow a strategy similar to Bet365 by focusing on strategic entry rather than immediate presence. This way, it allows second-tier operators to allocate their resources more effectively, avoid potential pitfalls, and establish a strong, sustainable presence in the new market over time.

Lastly, the best approach probably depends on the operator’s specific circumstances, including their financial strength, risk appetite, and long-term strategic goals.

Finally, let’s return to you and your plans. Do you have any personal professional goals that you would like to achieve by 2024?

I just joined Smartico.ai and TheAffiliatePlatform (TAP) as their new Marketing Director, so my goal is to ace this new job, haha! I’m looking forward to learning more about event exhibitions, which is completely new to me. As I’ve spent most of my gambling career in VIP Management and CRM, I’m really excited to be back to my roots and help these brands grow in the future with my experience and creativity.

Smartico is a combined gamification and CRM tool, and I’m really proud to represent them as it’s something I would have loved back in my day as a CRM Manager for Hard Rock in Atlantic City. I’m looking forward to getting back into player journeys and retention campaigns because I know how important they are for operators and the gambling industry to continue bringing in revenue.

Another goal is to learn more about affiliate tracking and management for operators. Although I operated Online Gamblers as an affiliate in 16 different states from 2022-2024, it will be a fun challenge for me to learn the operator side of affiliation as I now represent TAP.

Overall, 2024 is set to be a year of growth and learning. I’m excited to bring my experience to Smartico.ai and TAP, contributing to their success while expanding my expertise in new areas.