Is change coming for UK affiliates?

A change in Downing Street has done nothing to end the uncertainty about the UK government’s gambling policy, meaning rumours of new advertising restrictions continue to swirl. Affiliate Leaders evaluates whether change is imminent and what it could mean for the industry.

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The last two months have been the epitome of change in UK politics. Following Labour’s landslide win in the July general election, Sir Keir Starmer’s government has been working hard to distance itself from its Conservative predecessor.  

One change that has been emanating through the halls of Westminster this last week is the potential tightening of gambling advertising restrictions. 

At a recent Peers for Gambling Reform summit, Culture Secretary Lisa Nandy came under pressure to impose more stringent controls on gambling advertising, particularly during sporting events. 

This isn’t the first time that a curb on gambling adverts has been discussed in Westminster. Far from it. In fact, the topic was one that generated a lot of discussion during the consultation period which informed the findings of the much-delayed Gambling White Paper, released last year. 

Ideas such as pre-watershed bans on gambling adverts were key topics of conversation across the industry, while the Premier League opted to voluntarily phase out betting sponsors from the front of shirts by the end of next season.

During the summit, Sir Iain Duncan Smith, who co-chairs a cross-party parliamentary group examining gambling harms*, called for the sitting government to impose much stricter controls. 

While he stopped short of calling for an outright ban, the former Conservative leader did suggest that the government prohibit incentives and inducements to gamble – including ‘free bets’ – as well as impose further restrictions on advertising during sports, sponsorships and adverts in and around stadiums.

What does this mean for affiliates?

During the event, Liberal Democrat Peer and summit Chair Lord Foster urged Nandy to take a fresh look at the White Paper, pointing out that being appointed to the government front benches gave the Culture Secretary the “power” to introduce further reforms “however she decides is appropriate”. 

Lord Foster went one step further by noting that curbing gambling ads wouldn’t be subject to primary legislation, and would be “easy to implement” given the government’s 158-seat majority.

To say that such restrictions on gambling advertising would have a far-reaching effect on both operators and affiliates would be an understatement. Fortunately, for now, this ban is purely hypothetical. However, with the Gambling White Paper covering very little about advertising, and a Labour Government intent on big changes, it’s not out of the realm of possibility that such a measure could be introduced.

Affiliation has long been a cornerstone in any marketeer’s strategy, and the gambling industry has certainly been no exception to that, with many affiliates utilising bonus offers and ‘free bets’ to drive traffic and sign-ups. 

However, a ban would certainly make it considerably harder for affiliates to attract new customers and, as a result, could drastically reduce conversion rates. For operators, this may mean a smaller customer base, while for affiliates, it would certainly mean a drop in commission earnings. 

It’s likely that operators would also have to invest in much more comprehensive legal and compliance monitoring technologies to ensure that their affiliate partners are acting in accordance with the new regulations. 

Not only would this eat into operators’ marketing budgets, but the stricter oversight may also deter some affiliates from working in the gambling space. To say that affiliates might consider diversifying into non-gambling industries, or perhaps exiting the space entirely, wouldn’t be too far fetched.

Without ‘free bets’ and other promotions, customer interest in engaging with betting platforms will undoubtedly fall. Affiliates would need to work harder to create customer loyalty or drive engagement without the same level of incentives from operators.

Now, there are a few different approaches as to how this might be done. The first is with a shift toward more organic marketing strategies – think SEO, content creation and initiatives to build communities of players. 

The second is an investment in multimedia content, such as video, podcasts and even streaming. By creating more value-based content in a way that is engaging and makes the players feel ‘involved’ in the conversation – be it through game predictions, event analysis or game reviews  – affiliates can continue to drive traffic and foster engagement with bettors in a way that allows them to remain compliant with potential advertising bans. 

Could Labour ban gambling advertising?

It is worth noting that the Labour election manifesto made passing reference to gambling. But in true electoral fashion, its commitment was somewhat vague. The point was one of the few in the Labour Party’s manifesto that wasn’t accompanied by suggested action.

It read: “Labour is committed to reducing gambling-related harm. Recognising the evolution of the gambling landscape since 2005, Labour will reform gambling regulation, strengthening protections. We will continue to work with the industry on how to ensure responsible gambling.”

Labour has long been associated with the gambling sector and has received a number of substantial pledges from industry stakeholders over the years, including more than £300,000 from Peter Coates and bet365, and £35,000 from Richard Flint, former CEO of Sky Betting & Gaming. 

Intriguingly, Derek Webb, the founder of the Campaign for Fairer Gambling, is one of the party’s biggest donors this year. And he is not the only Labour-associated figure to be critical of the way in which the industry is marketed to the wider population. 

During her time as Shadow Minister for Sport, Gambling and Media prior to the election, Labour’s Stephanie Peacock was vocal about “the impact of gambling advertising in sport on children and young people, as well as those vulnerable to harm”. Her call for the swift introduction of the sports sponsorship code of conduct outlined in the White Paper has now been met by the governing bodies of football, horse racing and rugby league, but that was not her only demand.

“It is only through a combination of measures, from giving the Gambling Commission powers to crack down on the black market to restricting bonus and free bet offers, that we will bring our regulation into the modern age and better protect people from harm,” said Peacock, during a Westminster Hall Debate in March 2024. 

With voices such as Peacock (now Minister for Sport, Media, Civil Society and Youth, but having lost the gambling brief to Baroness Twycross) prominent, it’s likely that the government will take some steps towards curbing advertising of gambling within the UK. 

However, it’s unlikely that these changes will be introduced anytime soon. The ban on front of shirt sponsorships isn’t due to come into effect until 2026/27 and it’s probably reasonable to think that the government will see how this change pans out, and how suggestions from the White Paper are received, before introducing any drastic changes. 

For now, gambling operators and affiliates can relax, although clarity on government gambling policy remains too much to ask for. 

*The All Party Parliamentary Group for Gambling Related Harm did not feature in the August 2024 Register Of All-Party Parliamentary Groups, so its current status is unclear.