Why Casinos are Being Warned over Their Promotions

Posted by Harry Kane on Saturday, December 16, 2017

If you’ve heard of the Blockchain derivative Ethereum, you’ll know that this revolutionary technology could be about to cause a huge sea change in the online casino industry. According to reports, this cryptocurrency could soon underpin the world’s first casino with a ‘zero’ house edge, creating a totally fair and transparent experience for players.

Make no mistake; this is definitely indicative of where the market in heading in 2017. You only need to look at the current strategies being adopted by the UK Gambling Commission (UKGC) to see that more stringent regulatory measures will be implemented in the months ahead, as the groups looks to improve the consumer experience and protect vulnerable gamblers.

We’ve seen further evidence of this recently, with the UK regulator having issued a warning to online casinos regarding their promotional offers. Here’s what happened:

How have Operators Broken the UKGC’s Rules?

This news broke last week, when it was revealed that some gambling operators were found to have broken the rules on consumer protection. These findings were reported by the Competition and Market Authority (CMA), who reported that onerous and unfair terms and conditions had been applied to some promotional offers shared by customers.

As a result, operators are braced for a review of the terms that they offer to customers, with the rules and regulations surrounding promotions set to be tightened considerably in 2018.

At the heart of this is ‘unclear bonus promotions’ that potentially mislead the customer and impact negatively on their experience. Another key bone of contention is the fact that some promotional terms appear to place restrictions on consumers accessing money that they’ve won, with withdrawals prevented until several additional terms have been met.

Similarly, there has been confusion surrounding the difference between a customer’s ‘play with bonus’ balance and their deposit balance, while some have complained that maximum betting restrictions are not clearly laid out in the terms and conditions.

Further concerns About Customer Privacy and Data Use

The latter point is particularly concerning, as there’s a clear danger to customers if their data and personal details are used for promotional purposes. This would represent a huge infringement on consumer rights, and one that the regulator would take an extremely dim view of.

While there’s no suggestion that operators are deliberately trying to mislead customers, this is a clear indication of how vague terms and questionable promotional terms will be stamped out over the course of the next 18 months.

This will be done to creating simple and transparent bonuses that make the position of brands clear to individual players, with extensive caveats used to clarify any claims or potential points of confusion. There may also be a greater emphasis on reinforcing the responsible gambling messages in all individual promotions, as this sits well wit the UKGC’s narrative and increased focus on player welfare.

This is certainly a space to watch in 2018, while operators will need to review their own bonus terms to ensure they’re compliant with the current regulations.