The iGaming affiliate sector has faced multiple challenges over the past few years, as stricter regulations, shrinking advertising opportunities, and widespread cost-cutting have forced many companies to reconsider their business strategy and future outlook.
But there’s one company that stands out for its remarkable turnaround during these turbulent times – Game Lounge.
Now operating in 60 countries and with over 130 affiliate websites, the company appointed Richard Dennys, who previously worked at forensic accountants PwC, Yell and the BBC, as its new CEO this year.
As a new face in the iGaming industry, with a fresh corporate perspective, Richard has reinvigorated Game Lounge, increasing revenue by an impressive 30 percent and implementing initiatives that focus on transparency, sustained growth, and employee well-being.
Join iGamingFuture, as we discuss Richard’s strategies for turning the company around and examine the future of affiliate marketing.
Across Europe, customer protection laws are becoming increasingly restrictive, limiting iGaming brand advertising opportunities. How do you feel this will impact the role of affiliates in the market going forward?
“Regulation is undoubtedly a hot topic right now, and we’re seeing a new wave of rules coming into force in various European countries.
“The regulatory environment in Germany is very challenging. The Netherlands is calling for a ban on advertising, and we anticipate that new regulations will soon be implemented in the Nordics. Discussions are also underway in France and Poland regarding legalising online casinos.
“With regulation, there is a lot of discussion about ‘doing the right thing’, but the primary focus should be on protecting players. Whether current regulations achieve this goal is another matter entirely.
“From our data and experience, it’s clear that current regulations do not effectively address the illicit market. For example, we have a site in Germany but our operations there are currently limited due to stringent regulatory controls.
“Still, because we have an extensive business footprint, we see German players accessing gambling via our sister sites in neighbouring countries, like Sweden, showing that despite well-intentioned regulations, German players continue to seek out gambling opportunities, indicating that these [compliance] measures are ineffective.
“The situation in the Netherlands serves as another example. Recently introduced spending caps and other regulations are concerning for operators, as they reduce revenue. But, these limitations are merely an inconvenience for players, driving them to search for alternative casinos.
“Often, they do this through affiliate sites, which means that instead of earning one cost-per-acquisition, affiliates may earn multiple payments from a single player – a fantastic result for affiliates but perhaps not for the player.
“I am not arguing against regulation, but I am in favour of smart regulation that is well designed.
“Online players are often more resourceful and savvy than governments and regulatory bodies give them credit for, and the Internet is borderless. This means that regulators implementing rules must be cautious not to exacerbate the issues they are trying to address.”
You have extensive outside industry experience at companies such as PwC, Yell, and the BBC. Are there any key lessons from these sectors that could be transferred and converted into added value for the iGaming world?
“It’s ironic that you mention those companies because they were some of my least favourite jobs – the companies are too big, corporate, slow, and restrictive. From my experiences there–and in more formative roles–I learned I prefer working in agile, fast, motivated, and happy companies. This is what I’m currently implementing at Game Lounge.
“I joined the company after a particularly traumatic period marked by redundancies, which left staff feeling unsafe. We are now witnessing this in the wider affiliate industry, and our competitors like Raketech and Better Collect are currently going through this.
“When I joined Game Lounge, our Net Promoter Score–measuring how likely our employees would be to recommend us–was 12 out of 100. It has now risen to 41; we’ve almost tripled it in just six-months. We’ve also introduced a four-day working week and improved other wellness areas.
“I strongly believe in creating a healthy working environment. I’ve worked for companies that tried to exhaust employees to extract every penny, but those roles never last long, and people quickly become depressed and leave.
“I think the iGaming industry also needs to learn more about transparency.
“Previously, I ran an affiliate network called Web Gains, which focused entirely on retail, and our clients included major brands like Nike, Samsung, and Lego.
“We dedicated significant time to maximising the added value for the network by optimising all operational elements to ensure everything ran efficiently and smoothly. This also included maintaining transparency with our data, as the best partnerships are formed when information is shared.
“Transitioning into the iGaming sector, I’ve noticed a stark contrast and fundamental lack of transparency. I understand the hesitation due to the history of dishonest affiliates and rogue operators, but this needs to change.
“For the industry’s future sustainability, we must become more transparent in how we collaborate.
“If operators and affiliates share information, we can mutually benefit while keeping players safer.
“Our data shows when players bounce from one site to another, what they’re searching for, and also early indications of problematic gambling. This information could be key for operators in driving conversions and protecting players, but currently, it’s not being shared.”
With over 800 partners and 20,000 daily users at Game Lounge, how important is transparency and trust for sustaining growth? What can operators and affiliates do to improve this going forward?
“We’re doing really well this year. We’re projected to have around 200,000 first-time deposits, which is a massive leap for us, and our profits are up by around 30 percent, but as we mentioned earlier, this follows a very tumultuous period.
“This year has been pivotal. We’ve turned things around, and we’ve achieved this by focusing on transparency, trust and sustained growth.
“I think there are two levels of transparency. Firstly, as we’re a private company, we have the advantage of not being under constant scrutiny and living quarter-to-quarter. Publicly listed companies like Better Collective have to share their data, and if things go wrong, the share price drops and someone gets fired, preventing long-term planning.
“In contrast, we can focus on long-term strategies without this pressure or external judgment. However, this also limits our visibility in the industry and makes it harder for us to have a voice at the table.
“Secondly, there is also transparency within our partnerships. We believe operators and affiliates can do more to improve transparency, which means being more open with data and less secretive about operations, even in areas that may be sensitive, such as working in grey or illicit markets.
“Transparency isn’t just about regulatory compliance; it’s about setting benchmarks for excellence. Sharing insights on player behaviour, deposit values, conversion rates, and overall performance can help all parties identify where to improve.
“When I meet operators, they often ask what they can do better. And the truth is that nobody is getting perfect; some operators excel at conversions, others at player lifetime value, others at first deposits, and so on. We can see this information, so I think we are responsible for feeding it back so operators know where they can improve.”
You’ve been at Game Lounge for just over six-months now. The company has already seen remarkable change and is thriving. How have you guided the company through such a quick transformation?
“When I joined the company, I needed a crash course in iGaming.
“What blew my mind was how simple the business model was but how convoluted we’d made it, so I decided to focus on structure and what we do best.
“Game Lounge makes most of its revenue from around 10 of our sites, but thousands of people are working in other areas. So we reshuffled, putting our resources into the areas where we generate profit, which is relatively straightforward.
“We were open with our staff, who were worried about further redundancies –typically, one’s best leave first–, so we needed to change the mentality and reassure them. We also boosted well-being by increasing our employee value proposition along with the other measures mentioned earlier.
“This internal focus on our workforce increased motivation and happiness, which reduced recruitment costs and improved our reputation as employers, meaning that when we hire, we can pick from the best.
“The results of these strategies are that it’s not only our revenue that is increasing, our profitability is also climbing, and much faster than revenue – our net EBITDA used to be around 35 percent, it’s now 50 percent.
“As for the main growth drivers for the affiliate sector, I believe it’s the next generation of gamers.
“The affiliate model, as it is right now, is very much based on the habits of an older generation, who rely on search engines and trust traditional marketing methods.
“Younger generations, particularly Gen Z, operate differently. They tend to trust their social networks and peers more than conventional forms of media. This shift requires affiliates to evolve their strategies to tactics that resonate with them.
“I think we will see a rise in peer-to-peer betting and gambling, reflecting Gen Z’s preference for decentralised and community-driven models. This will lead to new operators with innovative approaches, which the affiliate industry must align with.”
Editor’s Note:
Richard’s views and actions are insightful, pertinent; even revolutionary.
It’s not often that the industry experts we feature are new to iGaming. But this is what makes Richard’s perspective so compelling.
Richard’s commitment to transparency might seem revolutionary to those who have made their careers in the iGaming affiliate industry. But for him it’s a simple case of common sense and a missed opportunity for mutually beneficial relationships that can drive growth – and, crucially, provide higher levels of player protection.
Game Lounge’s remarkable turnout is a testament to Richard’s approach and proof that a renewed commitment to employees, consolidating activities, and embracing transparency can increase a company’s resilience and success, while delivering on that all-important bottom line.