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Market Monitor Affiliates and spending caps
Affiliates and spending caps
● Warning signs in the UK
PART TWO
WARNING SIGNS IN THE UK
The GB Gambling Commission gave notice in a recent consultation document that it is minded to introduce spending caps in the UK , a move that will be as disruptive as it is controversial .
One of the sectors to be affected will be gambling affiliates . To be clear , we are as yet only at the consultation stage , but the direction of travel of the Commission ’ s recent interventions has clearly been towards ever harsher regulations .
In other words , the sector should be braced for big changes . In the consultation document , the Commission indicated that £ 100 would be the likely level of accepted losses per month before a player would have to provide evidence of affordability .
As identified by Regulus Partners , the move towards spending caps in the UK is part of a trend across Europe of regulators introducing mandatory limits on aspects of deposits and bonusing .
This includes Sweden , where the deposit limits have had a clear impact on the affiliate sector , and Germany , which will be introducing a series of measures next year that will have a meaningful and detrimental effect on affiliate marketing .
Clive Hawkswood , speaking before his departure as chief executive of Responsible Affiliates in Gambling , said there are two schools of thought on how the measures – which many presume will involve seeking evidence of affordability from a large cohort of customers – will impact the sector . ●The industry will contract as costs go up so more pressure will be put on marketing budgets , which would negatively impact affiliates ; or
●Rather than share personal and private data with an operator , a proportion of the customers approached will simply abandon the companies asking for it and open multiple accounts elsewhere so they can stay below the thresholds . If that ’ s the case , then it could create a miniboom for affiliates as operators compete for this new market of experienced punters . Hawkswood suggests the Commission ’ s aims with regard to affordability bring to mind the phrase about the road to hell being paved with good intentions .
“ I think they ’ ve seriously underestimated the pushback from ordinary punters who will be faced with invasive checks . Most of them won ’ t be problem or high value iGB Market Monitor