Raketech Revenue Drops 48% in Q1

Raketech, one of the biggest names in the iGaming affiliate world, has just posted a worrying set of results. In the first quarter of 2025, the company saw its revenue fall by 48% compared to the same period last year — down to €9.8 million.

For a company that’s built its reputation on scale, performance, and steady growth, this is a major shift. It’s not just about numbers on a balance sheet — it’s a signal that the affiliate model is under more pressure than ever.

So what’s going wrong at Raketech? Is this a blip or the beginning of a broader trend? And what can the rest of the affiliate world learn from it?

Let’s unpack the key issues.

Revenue falls across the board

The headline figure is bad enough — a 48% drop in year-on-year revenue. But what’s more concerning is that the decline wasn’t isolated to one part of the business. All three of Raketech’s key segments were down:

• Casino: Still the largest part of the business, but hit hard by changes in player behaviour and tighter operator budgets.
• Sports: A decline in sports betting revenue, with fewer big tournaments early in the year and rising competition in key markets.
• Sub-affiliation: One of Raketech’s newer growth areas, where they take a cut from other affiliates’ traffic. That too saw a drop, suggesting wider market weakness.

Put simply, this wasn’t one issue — it was a combination of pressures hitting at the same time.

What’s causing the decline?

Raketech pointed to several factors in their investor update, and they’ll sound familiar to anyone working in the space:

1. Tighter operator spending
   Many operators have cut back on affiliate budgets, focusing on profitability over rapid growth. That’s led to fewer new deals, lower CPAs, and more scrutiny over conversion rates.
2. Regulatory pressure
   As more markets introduce stricter rules around advertising and affiliate content, the cost of compliance has gone up. Raketech, like many others, has had to scale back in certain regions and invest more in legal and technical oversight.
3. Search engine changes
   Google’s algorithm updates continue to hurt affiliate rankings, especially for thin or templated content. Raketech’s large network of sites may be struggling to adapt quickly enough to these changes.
4. User behaviour is shifting
   Players are no longer just clicking through comparison tables. They’re consuming video reviews, influencer content, and live streams. Affiliates who haven’t adapted to new formats are losing ground.

Raketech’s response: a more focused strategy

In fairness, Raketech hasn’t taken this lying down.

CEO Johan Svensson acknowledged the challenges and said the company is reviewing its portfolio, scaling back underperforming sites, and focusing more on high-margin regions and verticals. He also emphasised that the business is still cash-flow positive and has no plans to pull out of key markets.

There are plans to invest more in tech and content — particularly in building more valuable tools and interactive experiences for users. But as with all strategic changes, the results will take time to show up in the numbers.

What this means for other affiliates

Raketech’s troubles offer a few clear lessons for other affiliate businesses, big and small:

• Diversification isn’t always the answer
  Spreading too thin across multiple verticals and regions can make you more vulnerable. Focus and specialisation are proving more valuable in 2025 than sheer scale.
• Content quality matters more than ever
  Search engines and users alike are rewarding depth, originality, and usefulness. If your content feels generic, it won’t perform — no matter how strong your domain authority used to be.
• Video and influencer partnerships are eating into the traditional affiliate funnel
  If you’re not experimenting with new formats and channels, you risk falling behind.
• Compliance is no longer optional
  Whether it’s responsible gambling messaging, geo-targeting, or correct use of brand names, affiliates are being held to a higher standard. Those who cut corners are getting penalised — by both regulators and operators.

Is this the beginning of a wider slowdown?

Not necessarily — but it does reflect a shift in the affiliate marketing landscape.

The old model of traffic > clicks > signups > commission is being replaced by something more complex. Operators want quality players, not just numbers. Search engines want trustworthy, well-structured sites. And users want more than just a list of bonuses.

Raketech’s Q1 results are a warning sign — but also a chance for the rest of the industry to take stock and adjust.

Final thoughts

A 48% drop in quarterly revenue is hard to ignore, and Raketech clearly has work to do. But the story here isn’t just about one company. It’s about an affiliate sector in transition — moving from scale to strategy, from templates to trust, and from one-size-fits-all to more targeted, value-driven models.

For affiliates willing to evolve, there’s still plenty of opportunity. But those who stick with old tactics in a changing market could find themselves facing more than just a bad quarter. They could be left behind.