Almost a month after the Department for Culture, Media and Sport (DCMS) released its White Paper on gambling, the actual measures that are being considered as part of the planned overhaul of the sector, remain somehow vague and are far from concrete.
As Casino Guardian previously reported, a series of further consultations with some industry stakeholders are scheduled.
So far, UK lawmakers have suggested the implementation of a stake limit on online slots, which are currently unlimited, although this form of gambling has been known for making the largest contributions to the treatment of gambling addiction. As previously noted, a consultation on the matter is set to be conducted for the lawmakers to eventually determine the exact range of the newly-enforced limits that could range from £2 to £15 per spin.
Apart from that, new customer accounts will see the enforcement of lower gambling thresholds. The Department for Culture, Media and Sport is set to implement stricter and more extensive affordability checks for players who lose £1,000 within 24 hours, or £2,000 within a 90-day period. Gambling companies, on the other hand, would be required to monitor customers who have lost more than £125 monthly, or £500 every year.
Now, the entire gambling market of the country is expecting to see the change that is already in the making and would affect anyone who has links with the sector, including so-called affiliates.
Gambling Operators’ Affiliate Partners Could Suffer the Impact of Planned Regulatory Overhaul
As previously revealed, the White Paper that was released by the Government at the end of April 2023 following months of delays, has reaffirmed that the UK Gambling Commission (UKGC) will still hold licensed gambling operators in the country responsible for all marketing activities conducted by their affiliate partners on their behalf. The news has come after reports, leaked in 2022, revealed that the lawmakers had rejected some arguments in favour of the proposed provision of operating permits to online affiliate partners.
For several years since 2020, the trade association established by three key operators in the gambling affiliate sector of the UK – the Responsible Affiliates in Gambling (RAiG) – has been lobbying for the implementation of a statutory licensing or registration regime for affiliate partners. Lately, the organisation has refocused its efforts on other initiatives aimed at bringing some improvements to the sector.
While the latest legislative initiative of the UK Government is aimed predominantly at addressing companies that operate under the necessary permits in the UK, the impact that such an overhaul is expected to inflict on the entire sector is really massive and would affect the affiliate operations, too. Popular international gambling brands that partner with so-called affiliates, including the ones promoting online casinos are also set to be affected in a certain way.
Controversy on Proposed Online Gambling Affiliates’ Licences Rises
The last few years have seen the ongoing debate as to whether online gambling affiliates operating in the UK should be licensed in the same way gambling operators and suppliers are in order to better protect customers’ interests heat up.
According to the chief executive officer of QiHGroup, Jamie Walters, the implementation of affiliate licences could eventually offset the burden faced by gambling companies, as these operating permits would serve as a way to separate the operators that comply with the country’s legislative and regulatory rules from the ones that do not.
However, the boss of the UK supper affiliate platform EasyOdds, David Da Silva, has shared that affiliate marketing companies are already subject to tight regulations, because the country’s gambling regulatory body has made it clear that operators will be held responsible for all marketing communications conducted by their affiliate partners on their behalf. He noted that the requirement basically means that operators are required to make sure their affiliate partners are in line with the UK’s marketing rules, policies and standards.
Mr Da Silva also shared that the arguments against affiliate marketing companies are groundless because they show no real benefit for operators or players. He believes that the implementation of further restrictions and regulations will only reduce competition within the sector but would also make the situation unnecessarily stressful for smaller affiliates. His opinion has been shared by Toni Halonen, co-founder of Bojoko.com, an online casino comparison platform, who noted that has also noted that while stricter licensing and regulatory rules help to make sure that companies are in line with the highest possible safety and customer protection standards, they could also suppress innovation.
UK Government Seeks to Restrict Gambling Advertising Further
As part of its collaboration with the UK Gambling Commission and the Advertising Standards Authority (UKGC), the UK Government has been lately focused on the implementation of a more restrictive advertising regime for advertising. The Online Advertising Programme of the DCMS is aimed at analysing the role various platforms have on British customers in order to make sure that any adverts promoting gambling services to local users are safe and socially responsible.
The main regulator of the UK gambling sector is also aimed at tackling direct marketing for online gambling by imposing strict rules regarding user consent that would affect both current and new customers.
Apart from that, lawmakers have proposed the implementation of new advertising measures aimed at tackling the impact of content marketing that may be appealing to children. As mentioned above, they have also suggested that the role of various platforms in the advertising process should be reviewed.
As revealed so far, the new measures are set to provide customers with the opportunity to decide how and when gambling companies can get in contact with customers, whether they reach out to them by mobile push notifications, email, or text messages. The implementation of stricter rules in terms of gambling advertising is set to be executed by allowing customers to opt in and out of different forms of communication whenever they want to through their account settings.
According to market analysts, however, the measure is likely to have quite a negative effect on affiliates.
Better Collective Sees No Negative Impact on Win Margins
One of the largest affiliates on the market – Denmark-based Better Collective – addressed the new initiatives unveiled as part of the UK Government’s White Paper on gambling, saying that the move of British lawmakers would have little to no financial impact on the company. The affiliate operator issued a statement welcoming the new initiatives, saying that the stricter measures will help to guarantee a safer and more responsible gambling environment for British customers.
According to Better Collective, new compliance measures, including affordability checks, have also been implemented by UK sports betting operators at the time when the White Paper was initiated by the country’s Government. So far, these changes have no negative financial impact on their revenue. The affiliate’s 2023 and 2024 financial targets have even remained unchanged since the announcement of the results of the British lawmakers of the local gambling sector.
When it comes to safer gambling, the firm has trusted the expertise of its Mindway AI and RAiG holdings. As explained by Better Collective, affordability checks have affected its sports win margin during the period of the gambling market’s review. Two-and-a-half years later, the company reported that its sports win margin has returned to normal and it does not expect any changes even if the proposed measures are potentially implemented.
- Author
Olivia Cole
