For two decades now, the UK has been bombarded with wave after wave of regulatory change. Since the 2005 Gambling Act, all the way up to the point-of-consumption tax in 2014, and even the more recent release of affordability checks. Change has been a constant in this industry.
There is now a new rule set to shake up the way online gambling brands market their companies. This ban has been named “mixed product promotions”. The promotions in question here are usually bundled with online casino bundle offers or other verticals for sports betting. Essentially, these systems are being seen as harmful by regulators because of the line they blur between fresh gambling features and encouraging dangerous play.
In 2024, the UK Gambling Commission (UKGC) gave the nod for this move as a result of a lengthy consultation on the matter, with the ban now coming into effect in December of this year.1
Even though the changes may not look like they cover much scope, the repercussions could be weighty in comparison.
As an expert in the business for some years now, I have seen the long-term integration of promotions and how they are used by operators to attract new players and keep older players coming back. Banning this major format will force the industry to adapt in ways they haven’t for a while now.
In this article, I will be drawing on how I think this ban could resculpt not only the promotional landscape but the iGaming industry as a whole, and also what this will mean for operators and players respectively.
Why the Promotional Ban was Introduced
This ban was justified by the UKGC for the risk it has presented to the cross-selling of products between various verticals from one casino to the next. An example of this can be seen in players signing up for a casino welcome offer and then being pushed to claim free accumulator bets on the sportsbook side. This is just an example, but it can happen in many ways. Regulators have mentioned that this can increase exposure to gambling in a way that incentivises the customer to branch out as much as possible, trying new products they otherwise wouldn’t have.
The move towards this change comes on the back of more general concerns about irresponsible gambling in the UK.
Statistics recently tracked by the UKGC have suggested that roughly 0.3% of adults in the UK are ‘problem gamblers’, with an extra 1.2% at moderate risk.2
Even though these statistics are far lower than rival European markets some campaigners have been arguing that these marketing ploys only intensify harm, especially in more impressionable markets. 2.3% of Germany’ population are said to have a gambling disorder as of 20233, with France being cited to have a marginally lower 1.7% as of the same year.4
The banning of these promotions by the UKGC has been deployed in the hope of reducing needless exposure, guaranteeing that players will only be engaging with products they actively choose.
The Impact on Operator Marketing
In particular, operators that employ promotions have always viewed them as a double-edged sword.
One side suggests bonuses are a crucial part of player acquisition, ensuring the casino can stand out from a saturated crowd. The other edge shows that these aggressive promotions have been criticised by regulators, as well as politicians; plenty of operators have thus scaled their offers back during recent years.
Shifting Acquisition Strategies
For operators, the most apparent repercussion of this will be the need to reshape their client procurement strategies.
“Cross-product” bundles (£20 of free bets plus 150 casino spins, for example) can no longer be advertised. Conversely, markets will now have to be promoted separately. Hopefully, this will lead to a return to more straightforward, product-specific offers, like a singular sportsbook free acca or a standalone deposit match at a casino.
Even though this new approach does sound simplistic, there are a few challenges it brings forth. Mixing promotions of products usually works well because it obviously increases cross-selling potential. Customers were encouraged to try multiple markets, therefore boosting lifetime value. Now that the ban is being introduced, operators will look to find new ways to increase player engagement through more compliant avenues.
Increased Reliance on Personalisation
A typical response to this will be a more AI-driven approach, personalising promotions to displace the mixed bundles available currently. Offers are then attuned to each individual player, based off of their habits.
Even though this is oriented towards more general marketing trends, it still raises concerns about what is fair and what is transparent. Regulators may, in turn, investigate promotions that appear to exploit high-spending players or encourage risky behaviour.
Lessons From Previous Advertising Restrictions
December’s upcoming promotional ban is not anything new. The gambling industry in the UK has constantly faced ebbs and flows of advertising restrictions for decades, with each one changing the way operators direct themselves to players. Lessons can constantly be learnt from these constant differentials, by both operators and regulators. Overcoming these previous measures shows exactly how this sector has constantly adapted to the challenges thrown at it.
From Whistle-to-whistle to Shirt Sponsorships
A clear-cut example of this appeared in sports in 2019, with the introduction of the “whistle-to-whistle” ban on TV gambling adverts being displayed during live sports events.
This change, in particular, proceeded the more global concern about the sheer volume of gambling adverts at significant events like the 2018 World Cup. Later analysis of this showed that the new rule had massively reduced children’s exposure to gambling commercials. This proves that these exact restrictions have and will always deliver purposeful public results.5 Quickly, operators pivoted straight towards the canvas of digital marketing instead, investing heavily in social media, influencer campaigns, and in-play sponsorships.
In more recent memory, 2023 saw the phasing out of front-of-shirt gambling sponsorships for Premier League clubs, with the rule being in full effect by the 2026/27 season. MPs, alongside advocacy groups, argued for the cause, saying that the deals normalised gambling among younger fans, pressuring the need to reform.6 Even though this eliminated a leading marketing channel, once again, operators adapted-redirecting to sleeve deals. Partnerships in lower leagues, and stadium signage were implemented in response to accommodate the latest changes.
Whilst these disruptions can put a spanner in the works of preexisting strategies, the industry will always find a way to recalibrate its design to move past them.
Consumer Implications
The new promotional ban in the UK iGaming sector will re-mould how operators market their bonuses and, in turn, how consumers will experience them. Part and parcel of this is that promotions will become more product-specific, consequently simplifying terms and conditions, which will obviously appeal to most players.
Overall, this shift may reduce the competitive climate among operators, making offers more suitable for players in the long run, but ultimately, less thrilling.
Could This Trigger Wider Industry Reforms?
More broadly, the UK gambling industry will be facing even more regulatory changes as a result. These changes potentially include promotional bans, stake limit debates, and more rigorous affordability checks.
Some analysts even believe that a promotional ban altogether may pave the way to even stricter marketing restrictions if more positive outcomes are seen, whilst many are still worrying about the further push of players towards unregulated offshore operators as a result. The UKGC has, of course, acknowledged this potentiality and is due to monitor it as and when it happens.
The International Perspective
To put things into perspective, it’s always good to look at how other jurisdictions apply their own gambling promotions.
For example, Spain issued new sets of strict rules back in 2021. These rules essentially eradicated gambling welcome bonuses entirely and limited operators to only offering players who have been registered for 30 days to enrol in available offers. This new approach severely impacted acquisition plans for operators and forced them to focus more on building up their brand instead.7
Another great place to look at as an example is Australia, where incentives have been restricted on a state level. Some areas have even gone so far as to ban operators from advertising sign-up offers completely.
Basically, the UK is not standing by itself with the grappling of these questions, and its change of tune could massively influence regulatory debates in other markets.
Conclusion
This looming promotional ban is representative of yet another step in the UK’s consistent effort to establish a safer gambling environment for players. The ban of mixed product promotions means regulators will now be aiming to reduce unnecessary cross-selling on their sites, limiting exposure to the riskier markets and thus improving transparency for consumers.
As such, the challenge here will be for operators to begin reshaping their marketing ploys to move into a more personalised area, meaning more product-specific offers and more directive comms. For players, the result will basically show as less attractive bundle offers, but, supposedly, a more transparent and fair promotional design.
Whilst this change could flag a greater clampdown on rules and regulations, it may just be a fleeting effort to push the industry forward. Whether it will, or even has worked or not is yet to be seen.
Historically, the industry adapts quicker than the rules take time to come into effect, similar to the whistle-to-whistle ban and the shirt sponsor removal. With levy contributions and more strict affordability checks now pending, operators will be facing a serious period of unparalleled inspection.
Essentially, this ban is not entirely hinged on bonuses. This signals the trajectory more than anything of where regulation is and will be heading, meaning stricter control, superior consumer protection, and more transparency as a whole. In terms of how stakeholders will be impacted, the only way to navigate this is to keep informed about the ongoing changes and plan accordingly.
References
- UKGC operators brace for regulatory shake-up as promotional ban deadline looms, Written by Giuseppe Faraone, Published by CasinoTopsOnline
- Gambling Participation and Problem Gambling Prevalence, Written by UK Gambling Commission, Published by UK Gambling Commission.
- Germany Gambling Atlas 2023: 2.3% affected by disorder, Written by Conor Porter (based on the Glücksspielatlas Deutschland report), Published by CasinoBeats.
- Monitoring Gambling Practices Among Adults in France in 2023, Written by Stanislas Spilka, Olivier Le Nézet, Éric Janssen, Antoine Philippon, Vincent Eroukmanoff; Published by OFDT.
- Gambling Firms Agree to ‘Whistle-to-Whistle’ Advertising Ban, Written by Richard Conway, Published by BBC Sport.
- Premier League Clubs Agree to Withdraw Gambling Sponsorships on Shirts, Written by Sky Sports News, Published by Sky Sports.
- Royal Decree on Commercial Communications of Gambling Activities (Spain), Written by Dirección General de Ordenación del Juego (DGOJ), Published by DGOJ.
- Gambling Advertising Rules and Inducement Restrictions, Written by ACMA, Published by Australian Communications and Media Authority.