iGaming Business magazine Gaming Platforms 2018 | Page 7

Regulation on
Gaming Platforms
2018
BONUS STRUCTURES
There are signifi cant changes afoot for how operators can
market bonusing but platform providers can smooth the transition,
writes Steven Valentine
Regulatory attentiveness in 2017 had monumental
consequences for gaming operators, particularly in
the UK. Whether in player acquisition, retention or
re-engagement, it seemed that the subjective nature of
bonusing terms was no longer up for interp retation.
Trust in the gambling sector is signifi cantly declining,
according to the UKGC, prompting operators to shift
their attention to transparent player marketing to build
business strategy. While some operators will have to
serve as examples, with regulatory fi nes, both operators
and technology providers will also have to tackle the
issue of fair marketing campaigns. By collaborating
closely with platform providers, operators can make
sure they have the technology to support regulatory
changes and allow players to engage better with fairer
bonusing structures.
Beyond the gaming industry, the Advertising
Standards Authority (ASA) gets numerous complaints
about ‘free bets’. Of particular concern to industry
watchdogs are subjective or less-than-transparent
conditions around deposits and wagers that qualify for
promotional bets, as well as questionable descriptions
of their ‘risk-free’ nature. Bonusing, in its updated (and
impartial) form, can provide considerable benefi ts to
players, especially as platforms improve functionality
along regulatory preferences to optimise their
experience. According to a recent study by Label Insight,
94% of consumers surveyed said they were more likely
to be loyal to a brand that offered transparency, while
73% said they were willing to pay more for a product
that offers complete transparency. Clearly, brand loyalty
and high player lifetime value begin with the some
simple business practices. The Gambling Commission
wants licensees to act accordingly on bonusing terms,
an emphasis it extends to platform providers with
numerous suggested conditions around bonusing offers.
Do’s and don’ts of bonus requirements
Platform providers must develop frameworks that
effectively communicate bonus eligibility, differentiate
between playing and bonusing funds in e-wallets and
allow players to exit promotions with their remaining
deposits and winnings. But not all gaming platforms
are created equally, which effects bonus campaigns
and the operator’s ability to follow strict regulation and
optimise business. The advantages of online bonuses
are the immediate confi guration possibilities based on
legislative requirement: opportunities to infl uence player
lifetime value and adjustments to individual acquisition
responses. Operators looking to align with the Gambling
Commission’s priorities should look for platforms
that are as technologically advanced as the regulatory
system is active, such as Comtrade Gaming’s iCore,
The Enterprise Gaming Platform. Bonusing modules
within online platforms provide a single point for
bonus management across multiple brands, suppliers
and products, and work as the control centre for legal,
business and marketing strategies.
The British regulatory regime is both liberal and
responsible. A high level of online product penetration
means the UK plays a key role in shaping the global
gaming market and we can expect other markets to
follow suit. Given UKGC’s former CEO Sarah Harrison’s
warning of intervention, or the Competition and
Markets Authority’s (CMA) declaration that “making the
withdrawal of deposit winnings conditional on meeting
wagering requirements is a signifi cant restriction on the
consumer’s right to withdraw”, operators will need to
work with their platform providers on legal compliance.
Operators who pride themselves on longevity
and high player loyalty avoid ambiguous marketing
because it affects all levels of their online operations
and can lead to million-dollar penalties. Industry-
leading gaming sites offer clear terms and conditions
in bonusing campaigns but it also falls to the player
to inform themselves about what they are agreeing to
participate in. Bonusing and gamifi cation are shaping
up to be among the defi ning benefi ts of the multi-
channel experience and points of differentiation among
operators. When we consider the facts, it’s clear that
legal bonusing can provide brand transparency, attract
players and increase player lifetime value.
Steven Valentine is director
of interactive at Comtrade Gaming,
a leading independent software
supplier that delivers open gaming
platforms and professional services
to both the online and land-based
gaming sectors. The company’s
product portfolio includes online
gaming platforms, server-based
gaming systems, live casinos
and solutions that enable
regulators to monitor and
control gaming activities.
iGamingBusiness | Issue 110 | May/June 2018
77