SBC News Voice of the Sports Betting Industry
Nearly two years after the UK government published its White Paper on modernising the country’s gambling legislation, recommendations and policy changes are still being implemented – the latest concerning the mechanics of bonuses.
Announced by the UK Gambling Commission (UKGC) this week, the rules will apply from 19 December as a further rules change to be applied to the 2023 White Paper – ‘High stakes: gambling reform for the digital age’.
Of significance, the two most important rules are that cross-sell promotions (cited as bonus mixing) and bonus incentives cannot require more than 10 times the bonus amount to be wagered before winnings can be withdrawn.
New rules will ban the cross-sell of incentives, as the UKGC determines that a bonus can only apply to one single product category. As such, a customer cannot secure a £10 sign up bonus by committing to placing a bet and playing a slot game, for example.
For some operators, this may spell challenging times ahead with cross-selling between betting and casino products a core part of many business models. However, some observers believe that in the long-run this change only has positive connotations for the industry.
“Whilst we understand this will mean operators need to shift their acquisition marketing strategies, it only further iterates the direction of travel in the industry towards both innovation and the need to focus on engaging and retaining a loyal customer base,” says Stuart Simms, CEO of affiliate media group FairPlay Sports Media (FPSM), the parent company of Oddschecker.
“Bonus mixing can attract one-time users, whereas relying more on progressive customer-focused technology and products, to create greater stickiness with a community, is proven to be a more sustainable and profitable long-term strategy.”
The bonus rules – a best case scenario
Throughout the two-and-a-half year duration of the Gambling Act review, reform advocates often labelled bonus promotions as examples of predatory marketing behaviour.
Whilst the majority of incentives consist of £10 or £20 ‘free bet’ sign up offer, a search through the double-digit pages of a Google will unearth some examples which could easily fit the definition of predatory.
It could be argued that moving away from these tactics was in the industry’s best interest. During its consultation on customer incentives, the Commission noted distinct opinions provided by industry stakeholders with clear divides in how to apply best practices and controls on bonuses.
In fact, some argue that the UKGC’s caps on bonuses announced this week may actually be one of the least impactful. The Commission’s new requirement that players be given the option to opt out of marketing may have dealt a much bigger blow – though again, this intervention divides opinion. 
“The new rules are not as significant as changes regarding opting into and out of marketing, which the Commission have already announced, and which come into effect in May 2025.” says Nick Arron, Lead Partner on law firm Poppleston Allen’s gaming team.
“The Commission didn’t go as far as they could have in respect of wagering requirements – they consulted as far as banning them entirely – so this isn’t the worst-case scenario.
“With these rules, the Commission has most likely found a balance between transparency and fairness for the customer and flexibility for operators on promotions.”
UK licence holders will have new conditions to contend with bonuses later this year, with the only exceptions being gaming machine technical and software licences.
The review of bonus incentives was sanctioned as part of the second phase of consultations of the Gambling Review, with the remit to “socially responsible incentives” and to ensure incentives such as free bets and bonuses do not encourage harmful or excessive gambling.
With the spotlight on the marketing, customer acquisition and retention strategies of the betting industry burning very bright in recent years, the transition away from some of the more aggressive, for want of a better word, bonuses has been embraced by many already.
“We’ve been making that shift at FairPlay over the past two years, and more forward-thinking operators have also been putting their front-foot forward with better experiences and technology in anticipation of legislation like this, which I’m sure won’t be the last of its ilk,” says Simms.
Operators now have nine months to ensure their use of bonuses meets the rules when the regulatory change comes into effect in late December. This may be tricky for some, but in the long-run like all regulations it is one that will eventually become the norm.
Back in 2019, the £2 staking limit on slot games in high-street bookmakers came into effect, and while many retail outlets have closed in the years since this is likely due to the general shift towards online betting seen across the industry rather than a direct result of this.
Bookies’ and casinos’ experience with new bonus rules will likely be similar, as will the Premier League’s ban on front-of-shirt deals coming into play next year.
Also, as industry observers have noted, in the context of other White Paper changes, like the tricky topic of finance risk checks, the bonus rules will probably not be that impactful, and may actually even benefit the industry in the long-term by helping regain trust and stopping a race to the bottom on customer sign-up offers.
“There has always been something uncomfortable about large re-wagering requirements, and at times it felt like the customer was almost being misled,” Poppleston Allen’s Arron remarks.
“In terms of the impact on operators, their bonuses will be limited, but this is one of the less intrusive changes we’ve seen since the advent of the White Paper. I also don’t take this as a sign that marketing and promotions will continue to get tougher from here on out.
“The Commission could have gone further, banning wagering altogether, or limiting re-wagering one or five times, but instead have allowed up to 10. Fairer and more transparent terms are generally good for all.”
