Ban on Mixed Product Promotions
From the end of this year forwards, operators will no longer be allowed to offer welcome offers that encourage consumers to engage in multiple forms of gambling—such as both betting and playing slots—to qualify for a bonus.
This decision stems from evidence indicating that:
- gambling across multiple products increases the risk of harm
- can lead to confusion due to complex terms and conditions
The Gambling Commission also shed some light on a key question posed by stakeholders in the gambling industry – if an alternative incentive can be provided to customers, which involves a betting 'credit', allowing punters to spend that credit on whatever they see fit across the different products/verticals.
The answer was 'yes'.
Cap on Bonus Wagering Requirements
The new rules also limit the wagering requirements attached to bonus funds to a maximum of ten times (10x) before winnings can be withdrawn with the aim of reducing harm.
For instance, if a £10 bonus is offered, the maximum playthrough required would be £100 before the proceeds are 'unlocked' for withdrawing. This change aims to reduce potential harm and enhance the clarity of promotional offers, ensuring consumers are not misled by excessively high wagering conditions.
Implications and opinion
These regulatory amendments mark a substantial shift in the UK gambling scene, including a change in the way the commission views incentives.
Operators will need to rethink their promotional and user acquisition activities to maintain compliance, which may include reworking bonus systems and marketing efforts. While the objective is to protect consumers, some industry stakeholders have expressed that these changes are restrictive, thereby affecting customer acquisition and retention strategies.
During the 2023 consultation with the Commission, some respondents pointed at technical difficulted and increased costs as counter-arguments for the change.
The Commission acknowledged the concerns and cited the deadline, which should provide ample time to undertake the changes.
Author's opinion
Bookmakers such as BoyleSports, Fafabet and Fitzdares have utilised and at the time of writing are offering mixed bonuses to incentivize sign-ups. From my experience with various bonuses, it appears that these bookmakers offer both sports and casino bonuses independently, meaning they are not interconnected regarding withdrawal requirements.
For instance, BoyleSports provides £30 in free bets, when you stake £10. They also give you the opportunity to accept £10 as a casino bonus, which is not contingent on the sports free bets – and vice versa. If you claim Fitzdare's sign-up sports bonus, you get 10 Free Spins. If you don't use them, they simply expire.
At first glance, mixed bonuses seem like a nice way to stand out and provide something different from the competition. However, I do see the other side of the argument as well, where even if you only have the intention to have a flutter on sports, you may be temped to use your casino bonus as well. 'Free money' you may say, and you'd be right! But casinos are far more gamified than betting on football and horse racing, so the intention seems different.
When it comes to the second change, I do like the thought of more reasonable wagering requirements, especially for the higher bonus amounts. A simple look at a list of casino bonuses will help you spot the variety of turnover requirements – a mixed bag of 0x, 10x, 20x, 30x up to 100x the bonus amount. To achieve this turnover, you may need to spend lots of time in a single session, if you are to meet the expiration deadlines, which often are mere 7 or even 30 days.
Overall, I think it's a positive change that will help encourage better gambling habits. However, I do expect these regulations to be reflected in the offered bonus amounts, particularly when it comes to the casino side of the table.