New UK Gambling Rules – Balancing Player Protection and Market Competition

UKGC’s New Regulations

The UKGC’s latest measures that are aimed at preventing problem gambling focus on two main areas:

• Wagering Requirements Cap – Operators are now limited to a maximum wagering requirement of 10 times the bonus amount. Previously, some promotions had wagering requirements as high as 50x, which could lead to confusion and encourage excessive gambling.
• Ban on Cross-Selling Bonuses – Promotions that require players to engage with multiple gambling products, such as slots and sports betting, are now prohibited. For example, a company is not able to award free spins on a slot game as a link with sportsbook gambling.

This move aims to reduce the risk associated with multi-product gambling, which has been linked to increased harm in some studies.

Industry Perspectives

These reforms have elicited varied responses from industry stakeholders and figures involved in UK gambling organisations. Pavlos Sideris, Director of Double Up Media and founder of NoWagering.com, suggests that the new rules may render traditional match deposit bonuses unsustainable. He predicts a shift towards lower-value, more innovative offers like free spins or wheel spins. Sideris also expresses concern that the 10x cap might be too restrictive, potentially squeezing smaller operators out of the market.

“For years, many operators have relied on ‘huge’ bonuses with wagering requirements of 30-50x to compete. That simply won’t be possible anymore,” he said when questioned.

Peter Bennett, Chief Marketing Officer at PlayOJO, a brand known for its zero-wagering policy, acknowledges that the industry is on the brink of a major overhaul. He notes that while bonuses may become smaller, the focus will likely shift towards fairness and player experience, areas where PlayOJO has already established a strong presence.

Balancing Player Protection and Market Competition

The UKGC’s intention behind these regulations is to create a more safe and transparent gambling environment. By capping wagering requirements and banning cross-selling bonuses, the Commission is hoping to protect players from potentially harmful practices and promote responsible gambling. There are numerous different protections already in place and some people even think that these rules may have gone too far.

There is concern that these changes might inadvertently drive players towards unregulated operators offering more attractive bonuses with higher wagering requirements. This could undermine the UKGC’s efforts and pose additional risks to players who may not have the same level of protection with unregulated operators.

Moreover, smaller operators may struggle to compete under the new regulations, potentially leading to a consolidation of the market where only larger operators can thrive. This could reduce the number of offerings available to players and impact market competition.