The UK gambling market has been in flux since the release of the Gambling White Paper last year. Now, with Labour back in Number 10, industry eyes wait to see whether Keir Starmer’s government will introduce sweeping changes. Affiliate Leaders looks at some of the changes outlined by Baroness Twycross earlier this week.
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Gambling finds itself back in the spotlight in the UK this week, more specifically, the prevalence of gambling advertisements and the impact of slot design and maximum stakes on safer gambling.
Speaking at the annual GambleAware conference, Gambling Minister Baroness Twycross expressed her concerns about offshore operators promoting overseas brands by using white label operations, before swiftly turning her attention towards the impact of game design and stake limits on player behaviour.
As well as outlining sweeping changes to the sponsorship model with UK football teams, the Minister also addressed some of the pending reforms to the White Paper – a set of recommendations released under the previous government that took several years to produce after numerous delays.
Published in April 2023, the UK Gambling White Paper is undoubtedly the most influential review of the industry since the Gambling Act was passed back in 2005 – also under a Labour government. But with significant advances in technology, the new white paper aims to address some of the gaps in legislation, the most prominent of which are player protection measures.
During the conference, Baroness Twycross detailed several key areas that the Department for Culture, Media and Sports (DCMS) will champion in 2025 and beyond, including the government’s plans for enhanced oversight of the industry.
She said: “We know that people can feel they are being inundated with gambling messaging – and this can be especially true whilst watching sport. We know that advertising can have a disproportionate impact on those who are already suffering from gambling-related harm.And we know that people are particularly concerned about the potential impact on children and young people.
“It is my expectation that industry can and should do more to work together, with each other and with us, to ensure that gambling advertising and sponsorship is appropriate, responsible and does not exacerbate harm. Gambling operators may feel that their own messaging and volume of ads are appropriate.
“But the issue of what is appropriate needs to be looked at in aggregate, not operator by operator. I do not stand here today to tell you what that volume must be, but I do expect industry to take the initiative on this by working across industry, with sporting bodies, with academics and harm prevention experts.”
Changes on the horizon
Baroness Twycross’s recommendations to introduce more stringent control on advertising comes amid the controversy regarding BC.Game, the current front-of-shirt sponsor for Leicester City, which has recently denied rumours that it is facing bankruptcy.
With an ongoing court ruling in Curaçao, BC.Game had also recently closed the doors to its UK operations, bringing its sponsorship agreement under further scrutiny. For the Gambling Minister, the crackdown on gambling advertisements carried very heavy emphasis on safer gambling, but it could also spell an end to white label agreements in the UK, with all advertisers potentially being required to hold their own licence.
This will, without a doubt, have a knock-on effect for gambling affiliates. Closing the market to white label brands and requiring advertisers to hold a licence also restricts the number of operators that affiliates can work with.
Perhaps the most impactful element of Baroness Twycross’s speech, however, was the confirmation that online slot stake limits will remain in place with the intention of curbing “high-risk behaviours”. While this is a laudable move in safeguarding users, it is likely to affect the affiliate revenue model.
She added: “We know that online slots are a particularly high-risk gambling product. However, unlike land-based gaming machines, they have no statutory stake limits. This is why I have prioritised the introduction of online stake limits that will slow any rate of loss for consumers.”
The limits will see a cap set at £2 per spin for 18-24 year olds, with that being raised to £5 per spin for adults aged 25 and over. Game developers will also face more stringent controls when it comes to slot design, including a reduction in the speed of play as well as an outright ban on autoplay features.
Impact on affiliates
Slots are, and have been for quite some time, one of the most lucrative verticals for affiliates, often associated with high levels of engagement and significant customer lifetime value (LTV). By capping stake limits, operator revenues are likely to feel the effect, translating into lower affiliate commissions.
As a result, affiliates may need to diversify their portfolios, shifting focus from high-roller-driven content to lower-stake, casual gaming audiences. This shift won’t be without its own challenges.
Affiliates would be wise to reimagine their value propositions, tailoring content to appeal to a broader, more diverse audience that enjoys the occasional flutter. At the same time, innovation in content strategies – such as gamified experiences or educational tools – could turn this challenge into an opportunity to establish a unique market proposition.
While these changes might seem restrictive from the outset, affiliates that can pivot their strategy to incorporate safer gambling and player education will stand to benefit from the changes.
By creating content that educates users on responsible gambling and the tools available to them, affiliates can continue to establish player trust and foster loyalty, an asset that could prove invaluable in a more regulated market such as the UK.
Ultimately, the success of igaming affiliates in a new UK gambling landscape will hinge on their ability to turn regulation into a catalyst for growth. By fostering trust, transparency and responsibility, affiliates can continue to stand their ground in a more sustainable and ethical gambling ecosystem.
As the industry braces for these changes, one thing is clear: the status quo is no longer an option.
