TRAFFIC
WHAT DO REGULATORY CHANGES MEAN FOR SIGN-UP PROMOTIONS ?
Complaints about unfair practices by some operators led to an investigation by the Competition and Markets Authority and a subsequent regulation rethink . Daniel Price pinpoints the changes and the likely impact they will have on business
IN OCTOBER 2016 , the Competition and Markets Authority ( CMA ) launched an investigation into the gambling sector after claims that some operators could potentially be breaking the law with regards to tying up funds from customers , and that many were treating punters unfairly .
The CMA heard from about 800 disgruntled users and dug into how gambling organisations operate , as well as closely examining the play on a number of websites . This investigation has resulted in the CMA identifying and calling out a number of operators which they believe to be breaking consumer law . These organisations have been given a chance to implement the CMA requirements of their own accord . If they do not meet the requirements , the CMA could take them to court where the court could enforce fines or potentially revoke their licences .
The major issues to be identified by the CMA include :
● ●lack of transparency of significant promotion restrictions
● ●restrictions on withdrawing deposit winnings and funds
● ●fairness and transparency of play restrictions
● ●withdrawing free bets or reducing their value
●●compulsory publicity .
The most concerning of these issues was the tendency for operators to have terms and conditions that prevent punters from walking away from the play with their funds whenever they desire – effectively trapping customers with the threat of losing their initial deposit .
“ The most concerning of these issues was the tendency for operators to have terms and conditions that prevent punters from walking away from the play with their funds whenever they desire ”
But new regulations mean :
● ●players will not be required to play multiple times before they can withdraw their own money
● ●gambling firms must ensure that any restrictions on gameplay are made clear to players , and they cannot rely on vague terms to take players ’ money
● ●gambling firms must not make players take part in publicity to collect winnings .
How did we get here These issues that are coming to light naturally beg the question , what caused operators to play unfairly to begin with ? In a highly competitive environment where these practices had become commonplace , the simple answer is “ because everyone else was doing it ”. On closer inspection , these tactics were part of marketing leverage that perhaps accidentally crossed a line . As Ladbrokes Coral said in a statement to the BBC
“ things had unintentionally gone too far ”. Since the investigation , Ladbrokes and two other major players , William Hill , and PT Entertainment , were quick to admit fault and implement the changes recommended by the CMA .
The reality is that these tactics have long been an accepted player acquisition strategy , and one that ’ s proven to be very effective – attracting players through the allure of big bonuses , which many players were unaware came with terms and conditions tying them into certain hurdles before they were entitled to the promised bonuses .
Sportsbooks and casinos are implicit in this practice – both to retain players early on and to keep bonus costs lower ( because of turnover requirements ) while appearing generous .
Attraction challenges Crunch into the details of what the new regulations will mean to operators ( see box , p10 ) and the common theme is that these regulation changes are going to make it harder to attract a certain kind of player – the one who was likely only ever going to sign up if you were giving them freebies . Of course , this profile of players add to the bigger picture in great number but they aren ’ t the profile that most operators are genuinely seeking , for obvious reasons .
There has been a power shift ; it used to belong to the operators and now it has moved to the players . This doesn ’ t sound like a great position of
iGB Affiliate Issue 68 APR / MAY 2018
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