It’s no secret that problem gambling is a widespread issue within the UK, with GOV.UK reporting that it has a direct financial cost equivalent cost to £412.9 million and a cost to society between £635 million and £1.3 billion. Therefore, it comes as no surprise that the UK Gambling Commission has announced much-needed updates to its regulatory framework, putting consumer protection in the gambling industry at the fore.

The UKGC’s new rules coming into effect in 2025 require online gambling operators to carry out more in-depth financial vulnerability checks and equip themselves for effortless and future-proof financial risk assessments. These changes are designed to promote safer gambling practices by enhancing consumer protection, fairness, and transparency. It is therefore crucial for gambling operators to proactively work towards preventing gambling-related harm.

Though the regulatory changes will pose some difficulties, they offer a chance to adopt more responsible practices. Fully grasping the implications of these new regulations and the wider issue of gambling addition will allow operators to navigate the shifting landscape, maintain compliance, uphold ethical standards, and foster continued customer trust.

Understanding the New Rules

The UKGC’s latest updates, introduced as part of a phased review of the Gambling Act 2005, implement key measures designed to enhance consumer safety in the online gambling industry. These regulations highlight the Commission’s continued commitment to safeguarding vulnerable individuals and mitigating gambling-related harm, particularly in the fast-expanding online sector.

There are three significant policy changes:

1. Financial Vulnerability Assessments: Remote operators are now required to perform financial vulnerability assessments when customers spend £500 on gambling within a 30-day timeframe. These assessments utilise publicly accessible data to determine if a customer might be at risk of gambling beyond their means. The UKGC’s goal is to pinpoint financially vulnerable customers before they incur substantial harm.
2. Frictionless Financial Risk Assessments Trials: The UKGC is testing seamless financial risk evaluations for the largest remote operators. This initiative enables operators to evaluate customers’ financial well-being without disrupting their gambling experience. The aim is to establish a system that safeguards consumers while minimising interruptions, ensuring that safety measures do not adversely affect responsible gamblers.
3. Additional Regulations on Game Design and Advertising: Alongside financial assessments, the UKGC will implement new regulations concerning remote game design in January 2025. These guidelines aim to make games less addictive and mitigate the risk of problem gambling. Furthermore, updates to direct marketing regulations, set to take effect in May 2025, will empower customers to have increased control over the marketing communications they receive from gambling companies.

These updates clearly demonstrate the UKGC’s commitment to enhancing gambling safety by focusing on financial vulnerability, addictive game design, and excessive marketing – all key factors that are known to contribute to problem gambling. The industry must get behind the Commission and its measures to help reduce the risks faced by vulnerable players.

The Repercussions of Problem Gambling

According to the latest statistics from the Gambling Commission, 0.5% of the adult population has a problem with gambling, making it one of the UK’s most pressing issues. For individuals with gambling addictions, betting can lead to several major life issues, including financial hardship, mental health issues, and damaged relationships.

Financial vulnerability is a major factor that can aggravate gambling addiction. Whilst gambling and online gaming can appear as a quick fix for those who are already struggling financially, it can often lead to even greater debt and hardship. Therefore, UKGC’s focus on financial vulnerability is vital – it targets this issue at its roots by encouraging operators to intervene before a customer’s gambling spirals out of control.

Another factor that plays a huge role in problem gambling is game design. Fast-paced games that offer frequent wins or incorporate mechanisms such as near-misses can hinder players’ ability to quit. The new regulations on remote game design are set to address these addictive features and enhance consumer safety.

What Gambling Companies Can Do to Stop Problem Gambling

Given the UKGC’s new regulations, it’s evident that online gambling companies must adopt a proactive approach to prevent problem gambling. Merely complying with the updated rules is not enough; operators need to exceed the minimum legal standards to genuinely protect their customers, including:

1. Enhance Financial Monitoring: The UKGC’s updated financial thresholds highlight the necessity of understanding a customer’s financial well-being. Operators should invest in tools that facilitate real-time assessments of customers’ ability to engage in gambling responsibly, intervening when needed. This includes providing resources like deposit limits and self-exclusion options to help customers manage their spending.
2. Encourage Responsible Gambling: Operators should actively foster responsible gambling habits among their customers. This can involve regular reminders of betting limits, offering cooling-off periods, and making it easy for users to access information on safe gambling practices. Clear communication regarding the risks associated with gambling and available support services can play a crucial role in preventing harm.
3. Create Safer Game Designs: The newly introduced regulations on game design offer an opportunity for operators to evaluate their offerings and ensure they do not promote addictive behaviours. By reducing immersion and minimizing features that encourage continuous play, operators can help prevent customers from developing gambling-related problems.
4. Ensure Transparency in Marketing: With new direct marketing regulations set to take effect in 2025, operators must communicate transparently and respectfully with their customers. This includes allowing customers to control the marketing materials they receive and ensuring that promotional content does not encourage excessive gambling.

A ‘Safer’ Approach to Betting

With the evolving regulatory landscape, online gambling operators are tasked with finding effective strategies to meet stringent requirements while prioritising customer protection. Technology plays a key role here – yielding operators with comprehensive tools to conduct financial vulnerability assessments, evaluate gambling risks, and ensure compliance with UKGC regulations.

Through the latest technology operators can generate secure consent links to access a customer’s financial data. Once granted permission, this type of system connects to the customer’s bank, finding real-time data on their income, affordability, and gambling history. This information is analysed to provide actionable insights into a customer’s financial situation, aiding operators in meeting the £500 threshold checks and identifying at-risk customers early.

Additionally, streamlined financial risk assessments allow operators to integrate outside solutions into their platforms through intuitive APIs. This allows for thorough financial evaluations without compromising the customer experience.

In this regulatory climate, it’s imperative for gambling operators to adopt solutions that not only ensure adherence to laws but also promote responsible gambling. Technology that empowers operators to meet compliance standards, protect their customers effectively, and foster the trust that is vital for sustained growth and success.

To learn more, visit: https://www.aperidata.com/

About the author / spokesperson

Andrew Bonsall is COO at AperiData.

Andy’s a credit risk entrepreneur with 25 years of global experience in the banking and software industry. He has vast experience working for Tier 1 banks and global software, scoring and data providers worldwide with a particular focus on Europe, the Middle East and Africa.

Andy and Steve Ashworth (CEO of AperiData) have worked at a lot of places together and celebrate a long history of success. They know what works and what needs to change in the industry. Together they formed a special team at AperiData doing world changing things.

Prior to AperiData, Andrew co-founded 10x Consulting Ltd in 2013 while also completing a variety of Credit & Risk positions across leading brands, Lloyds Banking Group, FICO, GE Money and Bank of America.

About AperiData.
An industry challenger harnessing the power of Open Banking, AperiData is laser-focussed on facilitating instant, accurate and fair outcomes for consumers and financial institutions. Authorised and regulated by the Financial Conduct Authority as a Credit Reference Agency and Open Banking Provider the company is on a mission to improve financial inclusion by revolutionising credit scoring and lending processes.

Founded by risk practitioners turned serial entrepreneurs with more than 100 years of experience in global credit risk and data analytics, AperiData’s real-time risk insights empower organisations to serve their customers digitally and work to improve life outcomes.

For more information, visit: www.AperiData.com

Written by Mathew Ratty, CEO & Founder TrafficGuard.

In an era where the stakes are high and the competition fierce, sportsbooks face a daunting challenge: staying ahead in a cutthroat market while battling the relentless onslaught of fraudsters.

With revenue projections soaring to £36.5 billion by 2024 and an estimated 180.8 million users globally expected by 2029, the online sports betting industry is a lucrative playground for both legitimate businesses and nefarious actors alike.

The European market, in particular, stands as a battleground where sportsbooks must not only secure profits but also safeguard audience loyalty to maintain their competitive edge. However, lurking beneath the surface lies a shadowy underworld of fraud, where bad actors exploit vulnerabilities to siphon profits and disrupt marketing efforts.

One of the primary weapons wielded by fraudsters is Invalid Traffic (IVT), a stealthy adversary that wreaks havoc on advertising budgets and undermines the effectiveness of campaigns.

Pay-per-click (PPC) campaigns, a popular choice for marketers seeking to drive traffic, have become prime targets for fraudsters who capitalize on automated bots to generate fake clicks, draining resources and diluting returns on investment.

Fraudsters Follow the Money

But why does ad fraud thrive in the sports betting industry? The answer lies in the pursuit of profit. Free bonuses serve as bait to lure in new customers, yet they also attract fraudsters who exploit loopholes to abuse these incentives.

From creating fake accounts en masse to deploying sophisticated bots across millions of IPs, fraudsters operate with impunity, leaving sportsbooks grappling with the consequences.

Inefficiency in advertising is another driver of huge losses for sportsbooks. When returning customers are using ads to access betting websites, companies are losing new customer attraction and ad campaign budgets.

Taking Out the Competition

To outmanoeuvre the competition and safeguard their bottom line, sportsbooks must adopt a proactive stance against ad fraud. By implementing robust verification measures and setting custom rules to detect and mitigate IVT, companies can reclaim control over their advertising budgets and drive sustainable growth.

Transparency and visibility are paramount, allowing marketers to identify fraudulent activity and allocate resources effectively.

The battle against ad fraud is not merely a defensive manoeuvre; it’s a strategic imperative for sportsbooks seeking to secure their place in a fiercely contested market. By arming themselves with data-driven insights and tailored solutions, companies can navigate the treacherous waters of online advertising with confidence, ensuring that every campaign is a resounding success.

Game, Set, Match, Win.

In conclusion, staying ahead in the sports betting industry requires more than just luck; it demands vigilance, innovation, and a steadfast commitment to combating ad fraud.

With the right strategies in place, sportsbooks can emerge victorious, delivering winning campaigns that resonate with audiences and safeguarding their budgets from the clutches of fraudsters.

A new study by industry investor Waterhouse VC has uncovered innovative approaches that emerging iGaming startups are using to acquire their first customers. This research involved extensive engagement with a range of companies, both B2C and B2B, in the online gambling sector, revealing a diverse array of tactics employed during the critical initial phase of their business growth.

The study found that high-touch customer engagement was the primary strategy for most startups. Tom Waterhouse, Chief Investment Officer at Waterhouse VC, emphasized that this approach, although not easily scalable, is crucial in establishing a robust customer base in the early stages. “Our findings suggest a shift from traditional methods to more organic, engagement-focused tactics,” said Waterhouse.

In terms of tactics, the report identified a clear dichotomy between B2B and B2C startups. B2B companies, like the B2B free-to-play game provider Low6, typically focus on one or two strategies. On the other hand, B2C startups, such as the online cryptocurrency casino Shuffle, tend to adopt a broader approach, often utilizing three or more diverse strategies for customer acquisition.

Shuffle’s success story was highlighted as particularly noteworthy. Ishan Haque from Shuffle explained their unique approach, “Instead of participating in traditional acquisition channels like streaming or traditional affiliate marketing, we recognized our edge in finding influencers with a small following, but that following consisted of 1000 true fans.”

Another approach that gained attention was leveraging strategic partnerships and networking, as illustrated by Circle Squared, a product and technology consultancy in the iGaming space.

Co-founder Clyde Harris shared how utilizing existing networks and forming strategic alliances helped them in acquiring new customers and raising their profile in the industry.

A surprising insight from the report was the lack of emphasis on paid advertising among these startups. This reflects a broader trend in the industry towards more organic growth methods and the importance of directly understanding and engaging with the target audience.

In addition to engagement and partnerships, incentivizing early adopters also proved to be a popular tactic, especially among startups like Voxbet, a Dublin-based ‘speak-to-bet’ technology company. “Typically, we have used exclusivity as the reward for an early adopter,” said Jonathan Power, founder and CEO of Voxbet.

The findings of this study underscore the significance of creative and high-engagement strategies for customer acquisition in the iGaming sector. As these startups continue to evolve, their innovative approaches to building customer relationships are setting new trends in the industry.

For a detailed exploration of all the tactics used, Waterhouse VC’s full report is available on their website.