The Next: Volume 19 with XST Capital Group

XST Capital Group presents The Next, a recurring series featuring founders, CEO’s, and key industry thought leaders to discuss the companies shaping innovation with the digital gaming sector. In this edition, XST Capital Group founder Joel Simkins speaks with Adam Small, CEO of Third Planet. This interview originally appeared on the XST Capital Group website.

“You have a remarkable 20-year history in the gaming affiliate industry, co-founding PocketFives.com in 2005, then establishing US Bets, which was later sold to Better Collective in 2019. After such significant successes and a major exit, what specifically motivated you to start over again and co-found Third Planet Media?”

There are a bunch of reasons we are back on the startup grind, and I usually lead by saying something like, "This is just who we are." But there's more to it than that. We were still just getting going with our news network when we got acquired in 2019, and while it was a nice payday, we left some unfinished business on the table. PASPA had just gone down, and there were great opportunities to get acquired, and that drove our decision to get out when we did. But what we really love doing is building sites that provide quality products and content, and now that we're independent again, we can do exactly that. We're doing what we love, and that's the main reason we're where we are today.

“Third Planet operates CasinoReports.com, LotteryGeeks.com, InGame.com, and Props.com, each targeting distinct iGaming verticals. How do you ensure that each brand maintains its unique identity and caters effectively to its specific audience, while still benefiting from being part of the Third Planet portfolio?”

This is a really important strategic question that my partners and I have spent a lot of time thinking about. With our last go around, we had a lot of topical overlap between our various sites, and it made it a challenge to keep all of them relevant over time. This time, we've done our best to keep the sites mostly independent of each other and covering mostly non-overlapping news beats. It's not possible to completely wall them all off from each other, but we have CasinoReports covering the casino beat, InGame covering sports betting news, Lottery Geeks covering lottery, and Props providing bettor-focused prop betting news. At the top level, some of our editors (particularly our Chief Content Officer, Brett Smiley), are collaborating with each other and providing guidance to multiple sites. But most of the day to day work is handled for each site independent of the other sites.

“You've stated a mission to provide top-quality news and tools without putting anything behind a paywall. How do you plan to scale this model profitably, especially given the competitive landscape where many rely on subscriptions or aggressive monetization?“

I remember when I said that, and wish I had said it more elegantly. I would kind of revise that what I said applied fully to our industry news coverage, but we may explore creating some type of premium product at some point down the road. That being said, we have a long history of successfully converting traffic to affiliate revenue. You're correct that it's harder than ever today, and the US is highly competitive. But while those factors may put a near term ceiling on the opportunity, that ceiling is still high enough to make this a very worthwhile opportunity for a group that knows how to win in this space.

“The industry is seeing the increasing influence of Gen Z, who consume content differently. Are you seeing this influence with your portfolio platforms and, if so, how are you adapting your content and marketing approaches to effectively engage this younger audience?“

So far, we haven't done that much. Our industry coverage is aimed at a demographic that probably skews a little older than Gen-Z, so we maybe haven't had to face that issue head on yet. But with a site like Props, we are working on getting more competitive in areas where younger people will be hanging around. I don't have a ton to say so far other than we're keeping an eye on everything and planning accordingly.

“How does Third Planet view its position within the evolving competitive landscape of the iGaming market, and what is your strategy for maintaining visibility and growth amidst more established players?”

Well, we're still pretty new, but the names putting out the news are quite established. The goal is just the never ending search for the most important stories we can break, and the best possible voices to amplify. One advantage we do have over the big affiliates is that we can operate more nimbly, without so much fear of push-back over hard hitting journalism. This is our whole business, and we aren't putting other verticals at risk by asking tough questions.

“The iGaming affiliate sector, despite its growth, is characterized by a complex interplay of challenges and opportunities that demand agile and forward-thinking strategies. What are the greatest opportunities you see for Third Planet in the affiliate space, and how are you working around some of the major factors that may limit that growth plan?”

I hear a lot of people talking about which verticals to attack (sweepstakes vs. prediction markets vs. regulated, etc.), but we are really trying to build out content that will have value regardless of which direction the legislative and regulatory winds are blowing. We see an opportunity to focus strictly on the value we bring to our readers, rather than focusing on monetizing specific types of gambling.

“With state-by-state regulatory variations in the U.S. creating a complex environment for affiliates, how is Third Planet building a compliance framework that allows it to operate effectively across multiple regulated jurisdictions, especially as you gain new licenses?”

We've got some wonderful partners, who I'll gladly plug here. IC360 (formerly Odds On Compliance) have been terrific. Last time I started a business in this space, there was really only a process in the state of New Jersey, and that process was rather simple for an affiliate working on CPA agreements. I still remember the nightmare of dealing with Pennsylvania when they first came online in 2019, and the barrage of new states that followed made it nearly impossible for any company to tackle all of the paperwork on their own. IC360 has made it easy for me, shepherding us quickly through the process in every state. I'm proud to say we're licensed or waiting for a pending license in every US jurisdiction that requires a license to promote sports betting and/or iGaming. As far as compliance is concerned, we work hard to build good relationships with our partners and do everything we can to stay within the bounds of what's needed in each state. It does require some additional work, but it's not overwhelming for us at this point.

“The partnership with Birches Health to build dedicated responsible gaming sections and sustainable play education initiatives is a significant move. How does Third Planet see its role, as an affiliate, in contributing to broader industry efforts to combat problem gambling and ensure a healthier ecosystem for online gaming?”

We want to be a part of the solution, and we certainly don't want to be part of the problem. RG has developed into one of the core areas of coverage for us. We feel strongly about covering this area from multiple angles in our reporting, even if that coverage can be quite critical of various parties around the industry and at times divisive. We've interviewed numerous people and companies to try and get a deeper understanding of the pros and cons of various approaches. I think we're helping educate the industry and media about this topic, and I'm proud of our role in that.

“Looking ahead, what's next for the Third Planet brands? How do you envision the evolution of content and offerings across your existing brands in the coming years?”

Right now, particularly with our industry reporting, I don't want to change too much, other than making sure we stay up to date on what the most important areas of coverage are so that we can always be on top of them! I'm sure we'll incorporate additional elements into our work, though most of that isn't overly experimental. We want to be reliable and trustworthy. That's the biggest thing. I think that's a pretty ambitious goal these days, actually! Something cool we are doing is building out some AI-adjacent tools that we think our users will enjoy. One of them is launching relatively soon on Lottery Geeks, but we'll also have some cool stuff coming on the other sites. I think people will like it.

“In a similar vein, as you continue to pursue a roll-up strategy, what are the key industries or market segments you are actively evaluating for future acquisitions? Are you primarily focused on deepening your presence within your existing verticals, or are you also considering venturing into entirely new verticals to further diversify the portfolio?”

Well, I wouldn't characterize us as pursuing a roll-up strategy, at least so far. We're trying to grow most of what we're building in house. But we do have our eyes open for additional acquisitions, and particularly we're interested in making acquisitions that broaden the scope of what we're pursuing, rather than things we can stack on top of what we already have, if that makes sense. So maybe it's a type of media we aren't currently doing much or any of, or maybe it's in a different vertical market, or we could even get into things entirely outside of gaming. I expect we will expand at some point, but I don't want to make mistakes we've seen others make, trying to win more and more market share by swallowing up competitors. You've always gotta have a plan for growth, and that means venturing outside of what you're already doing.

“When you find the rare moment to step away from building and leading four distinct brands, how do you like to relax and recharge?”

I've got 3 young kids and a startup, so I don't really know what those words mean haha. I try to go to the gym every day, even if it means getting up really early in the morning. And I try to walk as much as possible. Florida is great for that, and we live in a lovely area, so I really do try to get some outdoor time in every day. I'm also into racket sports, when I have the chance to get out.

Thank you for the fascinating discussion on Third Planet and for sharing your perspective on the iGaming affiliate industry. As we conclude my questions for you, I'd like to offer you the opportunity to turn the tables: go ahead and ask me anything you'd like on the industry.

Joel, thanks for having me as a part of this series. I understand a fair bit about what you're doing with this new firm, and your ambitions. I'd like to know more about who XST Capital's ideal partners are as you build out your industry footprint. I work with a number of companies. Some of them are ones I own and operate, but others as well where I'm involved as an advisor or consultant or something along those lines. I'd love to be able to direct some people your way when it makes sense! I hope things are going great.

Thanks Adam, we have been very fortunate to have developed what I believe is an increasingly recognizable brand that is synonymous with supporting early stage (pre-seed to A) and even more mature companies in the digital gaming sector. A year ago we were doing a lot of outbound calling and still do plenty of that but the phone is definitely ringing (I know that sounds antiquated) on our side now. We are an intellectually curious group and definitely want to continue getting smarter as it relates to pockets of the ecosystem where we have room to expand like in crypto, payments, and other adjacent verticals that are increasingly intersecting with gaming.

Adam Small - Biography

Adam Small has been an entrepreneur in the gaming industry for more than 20 years, dating back to the 2005 launch of PocketFives.com, which became one of the premier destinations on the internet for online poker players during the height of the poker boom. Later he founded the US Bets Network, which, along with RotoGrinders.com, got acquired by Better Collective in 2019. His latest venture, Third Planet Media, operates the websites LotteryGeeks.com, CasinoReports.com, InGame.com and Props.com.