Originally Posted by RakeTheRake
David probably better qualified to comment but i dare say he will only have an opinion to, as it is very hard to be precise until someone tries to get a license.
We have no real view on this as things stand as it is early days but we are being realistic. This is not going to be a cheap experience. We heard the Las Vegas gaming board flew people over to meet the Paddy Power guys....at Paddy's expense they were told! So that must have been a $30k trip to start with as I doubt they fly coach. A license could easily cost upwards of $50k-$100k after all the checks and legal fees.
But i will add, affiliates are resilient buggers (second only to cockroaches) and if there's a way...they'll find it!
I've looked into the matter this past week. The NGC/GCB staff felt that a sub-affiliate model would not be permitted, and each affiliate needed to get licensed. (I expressed some disappointment at that interpetation of the current Regulations, as Independent Agents for B&M casinos are allowed to use a sub-affiliate model, with little more than their own license and a reporting of sub-affiliate relationships.)
Fortunately, the Gaming Commission sees online poker regulation as a sort of "work-in-progress" and I hope to raise the sub-affiliate model for some form of regulatory approval or at least approval of it as a matter of market/contract realtionships between operator licensees and licensed affiliates.
(I may know more on that specific topic, as well as the availability or not of rev share, CPA, rakeback models, et cetera, by the time of my BAC presentation on October 12.)
Not only are Affiliates resilient, the market is inexorable; if there is a way to bring together affiliate resources and emerging US licensed operators who understand their value, it will come about.
Nevada regulators have voiced concerns about and understand "liquidity, liquidity, liquidity". They are also interested in a successful launch of the industry. Regulatory concerns can be addressed; it seems time for an educational process on how affiliates address the need for liquidity and the interests of newly launching operator licensees coincide.)
(As for the BAC October 11-13, I think it is one of the great bargains available for Affiliates, I mean it is FREE for Affiliates to attend all the presentations and visit the Exhibit floor.)
Finally, the fees for a marketing affiliate license are not in the $50,000 range, more like $3,000 for application and an investigation deposit, plus $1,000 annually for a license. Because "investigation costs" may run over the $2,500 for non-US-based affiliate owners, the sub-affiliate model seems to suit the market best in my personal view.
I know that at least one affiliate is likely to be licensed this month, having gotten a prompt start on the process a couple of months ago.)