The Free Bet Dilemma

The UK government’s review of the 2005 Gambling Act has been underway for almost two years and has been further backtracked after Prime Minister Boris Johnson resigned in July.

This leaves operators, suppliers and affiliates expecting changes to occur, but not knowing what those changes are or how long it will take for the new requirements to come into force. Bojoco CEO Joonas Karhu said.

“Of course, over the past few months there have been several ‘leaks’ about some of the changes being considered, such as slot wagering limits, increased affordability checks, and a ban on soccer team shirt sponsorships. was. .

Karhu continues: About free bets and free spins.

For operators and affiliates, this is a regulatory change that could have the opposite effect as intended by the UK government. “

Free bets and free spins are a major factor in consumer decisions to play and online casinos used by affiliates to create content, attract players and direct them to licensed operator partners It is also one of the important aspects of

What does this mean for operators?

This of course poses a big problem when GB licensed operators are no longer allowed to offer free bets or free spins to players.

“If UK operators and affiliates can no longer use free wagering to attract consumers and promote their brands, where are the sportsbooks and casinos and the affiliates who promote them?

“You must remember that it is not illegal for UK players to place bets on offshore sites, but it is illegal for those sites to actively target UK players. Free bets and free spins Will a ban on eventually push more UK players to these sites? I think it’s a real possibility.”

Karhu understands that when this happens, players are not afforded the same protections as playing on a Gambling Commission-licensed site.

“The UK is already seen as one of the toughest countries when it comes to responsible gambling. As we’ve seen in months and years, some licensed brands may exit the market, further reducing customer choice.”

“With more opportunities to operate offshore sportsbooks and casinos, is it likely that more operators will invest in these sites rather than pursue regulated markets?”

In Bojoko, Karhu draws on parts of Adam Smith’s free market theory and the idea that capital moves toward economically worthwhile investments.

“Smith’s theory also applies to affiliates, who may find that they also need to start promoting their offshore sites to meet the needs of their visitors and members.

“Affiliates do a great job of ensuring that players are directed to sanctioned sites, while at the same time highlighting the importance of safe gaming and the importance of ensuring players are in control of their play. We are also educating them on the tools they can use.”

However, when it is no longer practical for affiliates to work and promote with GB-licensed online casinos and sportsbook brands, we expect many players to push to offshore sites where they can offer free bets and free spins. is not unreasonable. Ultimately, these sites allow you to generate more revenue.

Think gambling rate

He points out that the UK has record low rates of problem gambling. Just 0.2% of the UK population was considered to have a gambling problem, according to the Gambling Commission’s latest report.

Karhu said lessons should be learned from markets such as Sweden, which are more regulated than the UK. “Operators can only offer one welcome bonus to him and no more bonuses or incentives are allowed. This has resulted in relatively low channelization rates for licensed operators. ”

According to a report published in May, if some restrictions were lifted, the channelization rate could jump from around 80% to 90%, generating an additional tax revenue of SEK 1 billion.

“I believe the government should consider all the questions I have raised about the possible impact of the free bet and free spins ban on the UK market before taking any decision,” Calf said. I will add.

There is a real risk in taking action to take action and in this case immeasurable harm to our operators, affiliates, the wider industry and most importantly the players we are trying to protect. may give. ”