Thursday October 18, 2012 : LADBROKES SWITCHES OFF U.S. AFFILIATE MARKETERS
But what happens to players already referred by affiliates?
Online gambling affiliate marketers in the United States are currently digesting the unexpected decision by the UK Ladbrokes group to severe ties with them.
An email giving notice of Ladbrokes' intention to do this by end October has triggered speculation that the British company is trying to put its house in order against the possible legalization of internet gambling in the United States at some point in the future.
US affiliates received the following email from Ladbrokes this week:
"We write with reference to Score, the Ladbrokes and LBapuestas Affiliate Programme in which you are currently participating.
"We regret to inform you that Ladbrokes and LBapuestas have taken the business decision to cease commercial partnerships with all of our affiliates based in the USA.
"In accordance with Clause 12.6 of our terms and conditions (a copy of which can be found at xhttp://www.score-affiliates.com), we hereby provide you with written notice that we are terminating our contract with you with effect from 23:59 on 31 October 2012.
"Of course, all commissions due and payable to you in respect of the period 1 October 2012 to 31 October 2012 will be paid in full in accordance with the terms of our contract with you. This is in addition to all other outstanding commissions due and payable by us to you in accordance with the terms of our contract.
"Please do so by emailing email@example.com with your payment details together with a pdf document on your company letterhead with the required authorised signatory on the account.
"Please be aware that with effect from 23:59 on 31 October 2012 the licence granted to you pursuant to Clause 7.1 of our terms and conditions to display the relevant Ladbrokes and LBapuestas brand features and related content will terminate.
"Therefore we kindly request that you remove and refrain from using all Ladbrokes and LBapuestas branding (including, but not limited to, all of our logos, trade marks and trade names) and any other Ladbrokes and LBapuestas content from your website at all times after this date.
"Please also note that access from your website to our score platform will be blocked by us with effect from 23:59 on 31 October 2012 and therefore we also request that you remove all links on your website to the score platform with effect from this date."
One of the main concerns of affiliates appears to be the residual income generated by regular players that affiliates have delivered to Ladbrokes. The fear is that the company will not continue to pay affiliates their share of the business generated by historical players, or will refuse to make an offer in compensation.
Affiliate message boards also carry complaints that earlier this year Ladbrokes "retroactively forced lower commission rates on all of their affiliates."