The gambling industry has come under increasing scrutiny in recent years. There has been heavy criticism aimed at online operator in particular, and regulators have begun introducing tighter controls. Just last week, the UK Gambling Commission announced plans for a casino promotions crackdown.
In the ever-growing iGaming landscape, promotions are vital tools for operators to attract customers and drive engagement. However, critics have pointed out that these promotions can target and harm vulnerable players. Read on to learn more about the Gambling Commission’s casino promotions crackdown and what it might mean for the future of the industry.
What’s Behind the Decision?
If you spend any time on an online gambling platform, you’ll be more than familiar with the various deals and promotions that are on offer. These can encompass promotions on specific games or seasonal offers over the holidays or during major sports events.
Promotions give operators the chance to diversify their offerings and offer additional routes for player acquisition and engagement. Think of them like a sale in a store – they’re designed to draw in customers with the promise of a bargain.
However, industry critics maintain that casino promotions can do more harm than good and can result in a higher risk of problem gambling.
Responsible gambling is the name of the game in today’s iGaming industry. Regulatory bodies like the Gambling Commission are committed to reducing the impact of gambling-related harm, and it seems as if the casino promotions crackdown is the next step in its strategy for doing so.
What Promotions Will Be Affected?
As we touched on above, casino promotions come in a wide variety of shapes and sizes. However, the Gambling Commission has one particular type of promotion in its crosshairs: mixed product promotions.
Mixed product promotions are, as the name might suggest, promotions that require participants to play across multiple gambling products. For example, a mixed product promotion might ask a player to wager on both sports and casino games.
The Gambling Commission has confirmed that these promotions will be banned, with the new rule expected to come into effect by December 2025. Explaining the decision, the Commission cited research which revealed that players are more at risk of problem gambling if they play across multiple products.
Wagering Requirement Cap
As well as a ban on promotions, the Gambling Commission has confirmed plans to introduce a cap on casino bonus wagering requirements. When a player wins cash as a result of a bonus or promotion, wagering requirements stipulate that these winnings must be wagered a certain number of times before they can be withdrawn, with 50x a common wagering requirement found across iGaming platforms.
The Gambling Commission explained that these high wagering requirements can confuse players and, in some cases, encourage them to continue playing beyond their means. To address this, wagering requirements will be capped at 10x.
What Does This Mean for the Industry?
Responsible gambling is the most important topic in today’s gambling industry. Player protection is top of the list of priorities, and we’re seeing regulations tightened the world over to safeguard vulnerable players. Operators must be prepared to make the necessary changes and update their platforms to align with a rapidly evolving regulatory environment.
