The gambling industry has found itself in the spotlight in recent weeks due to the impact of maximum stakes and slot design on safer gambling. The UK affiliate gambling leaders expressed concerns about some changes Gambling Minister Baroness Twycross outlined.
During her speech at the GambleAware conference, Baroness Twycross, the minister responsible for gambling, expressed her disapproval of offshore operators that use white-label operations to promote foreign brands. According to pay per head affiliate experts, Baroness Twycross quickly discussed how game design and stake limitations influence player behavior.
The Minister announced essential changes to sponsorship arrangements for UK football clubs and updates to the delayed White Paper, which includes recommendations from the previous administration.
UK Affiliate Gambling Leaders Brace for Industry Changes
Undoubtedly, the most consequential examination of the business since the passage of the Gambling Act in 2005 (also during a Labour administration) occurred in the UK Gambling White Paper, published in April 2023. Significant technological advancements, however, necessitate the creation of a new white paper to fill some legislative loopholes; among them, player protection measures stand out.
Speakers at the conference heard from Baroness Twycross about the government’s intentions to increase industry regulation as one of several essential issues that DCMS will fight for in the years leading up to 2025.
In light of the recent issue surrounding BC.Game—Leicester City’s front-of-shirt sponsor—and rumors that it is approaching bankruptcy, Baroness Twycross has recommended more advertising regulation due to a continuing judicial decision in Curaçao, BC.Game has shut down its UK operations lately, further casting doubt on its sponsorship deal. According to the Gambling Minister, a crackdown on gambling ads has a strong focus on safer gambling but may also lead to the end of white-label deals in the UK and the need for all marketers to own their licenses.
This is sure to have repercussions for gaming associates. With the market closed to white-label brands and ads that require a license, affiliates can no longer operate with as many operators. Thus, affiliate marketing for bookies is ineffective.
Impact on Gambling Affiliates
However, Baroness Twycross said the most essential thing was that the limitations on how much you may bet on online slots will stay in place to prevent people from engaging in dangerous habits. Although this is a commendable step towards user protection, it will undoubtedly impact the affiliate revenue model.
For those between 18 and 24, the maximum bet per spin will be £2, while for those 25 and above, it will be £5. Slot designers will also be subject to stricter regulations, which means slower gameplay and eliminating autoplay capabilities.
Due to the high engagement and substantial customer lifetime value (LTV) frequently associated with slots, this sector has always been among the most lucrative for affiliates. Operator revenues will undoubtedly take a hit due to stake limit caps, which means affiliate commissions will go down. So, affiliates could have to broaden their target demographic from high-stakes players to casual gamers with lesser bankrolls. Problems may arise as a result of this change.
Affiliates would reconsider their value propositions and modify their material to appeal to more people open to occasional gambling. But new content methods, like gamified experiences or instructional tools, might transform this problem into a chance to carve out a unique niche for yourself in the market. Also, they can use affordable online marketing strategies to attract customers.
