In my time at Fruity Slots, I’ve seen firsthand how regulatory changes impact the gambling industry.
The UK is one of the biggest online gambling markets in the world, if not the biggest, beating even the United States. Gambling is ingrained in UK culture, from old betting traditions on horse racing to the nationwide love of football bets, the National Lottery and slots in land-based casinos, clubs and online casinos.
The UK should be a market that everyone wants to enter, but recent regulatory changes have announced a major shake-up to gambling promotions, intending to make them ‘safer and simpler’. Could these changes end up pushing more players toward grey markets, where they face fewer protections and greater risk – and is that a price worth paying?
In just a few years, changes have been implemented to disallow bonus buys and auto-spins, reduce maximum stakes, adjust deposit limits, and even tone down auditory and visual effects to prevent them from giving a misleading perception of a win. Casinos have pulled out of the UK, seeing it as a non-viable market, as have some affiliate sites.
What Are The Changes?
Following a 2023 consultation about high stakes gambling and reform for the digital age, the UKGC has decided that gambling businesses will be banned from offering potentially harmful offers, covering both wagering requirements and a mixed promotion ban.
Ban on Mixed Product Promotions
Operators may no longer offer bonuses that require the player to gamble on multiple types of products, such as betting and slots. The aim here is to reduce harm, as data suggests that gambling across multiple products increases risk.
Wagering Requirements Capped at 10X
The new rules mean that casinos must limit wagering requirements on bonuses to a maximum of 10x before winnings can be withdrawn. The aim here is to enhance transparency and to prevent excessive gambling associated with high wagering conditions.
When Do These New Changes Take Effect?
The new rules will come into force on December 19th, 2025, giving operators time to adjust to the new changes.
What Research or Evidence is Behind These Changes?
The Gambling Commission found that 65% of respondents who had seen a promotional offer reported that their gambling was affected, whether that was gambling for the first time, or after a break from gambling.
They also found that time limits on wagering requirements pose a clear risk of creating a sense of urgency to gamble and as a result, incentivised high-intensity play and potentially gambling beyond the limits that the player would have without time constraints.
Who Decides What is Acceptable?
The measures taken are based on studies, government directives and research from Public Health England, NatCen and other organisations that inform on the gambling harm.
Operators do have a say through industry consultations and direct discussions with regulators, but their influence is limited. Industry pushback may not lead to reversals or changes in regulation.
Do these restrictions unfairly punish licenced operators, while unregulated sites continue offering unrestricted promotions? While regulated casinos comply, some parasite sites continue to aggressively push “not on GamStop” casinos in search results, even for search terms that are not directly related to them, making it easier for players to find unregulated alternatives.
The Implications for Casinos
A cap of 10x on wagering requirements for bonus offers will fundamentally change how casinos structure their promotions. After all, higher wagering requirements on deposit match bonuses act as a risk buffer, ensuring that promotions do not translate into financial losses.
The new cap will mean that casinos will need to significantly revise bonus strategies, potentially leading to:
- Reduced bonus offerings
- Adjustments to RTP
- Higher Risk for the Casino
- Less room for casinos to be competitive with offers
The impact on new casinos may be much more significant. Established brands like Bet365 have strong customer loyalty and deep pockets, allowing them to rely on more than just enticing promotions to attract new customers. New casinos often rely on promotions to draw players in, while startups or lesser-known casinos may struggle to gain a foothold in this highly competitive market.
This could dramatically shift promotions from deposit match offers to free spins no wagering promotions, but as operators know, the value of a customer seeking a no wagering offer is often lower, with the player bouncing between casinos to claim the offers.
Overregulation and the Risk of Grey Market Migration
The exodus of online casino brands in the UK is more likely than ever. Some have exited the market long before this change, and many are likely to follow in their wake.
Every new rule aimed at protecting vulnerable players also restricts the freedom of responsible gamblers. The risk of players moving to unregulated, offshore casinos is greater now than it has ever been, with changes like this accelerating that shift.
The question must be asked – How many regulations designed to protect players have ultimately caused more harm than good? And what other measures could protect the vulnerable while keeping the freedoms of casinos and consumers intact?
Is There Another Way?
Some argue that there could be a better way to protect vulnerable players, without enforcing blanket changes that impact all players and operators so dramatically.
Is it time to look at more personalised risk-based restrictions by looking at a player’s gambling behaviour individually, and applying stricter limits only to those displaying signs of problem gambling?
Perhaps casinos should be given the chance to enforce clearer terms, including a mandatory questionnaire that players must complete before receiving a bonus. Crypto investing platforms require users to take mini quizzes to assess their understanding of investment risks – could a similar approach not benefit both operators and players?
If regulation could make way for some education, then perhaps a middle ground could be found.
