Bonuses play such an important role in the UK online casino industry. They are also very controversial and December will see a major change in what companies can offer customers. How will this affect the industry?
The UK Gambling Commission (UKGC) has announced that from December 19, new measures are going to be introduced regarding online casino bonus terms. The biggest change is the introduction of a 10x wagering cap for all companies that are licensed to operate.
Let’s take a look at the importance of bonuses and why the UKGC has had to introduce this new wagering cap. It’s a decision that has been welcomed by those who have been campaigning against the way online casinos use bonuses.
The online casino industry is a very competitive one. There are plenty of companies that are legally operating and it’s a battle to earn a good market share. Being able to offer potential new customers a good product packed with games and big prizes to be won is important of course. Another way of attracting new customers is to offer welcome bonuses.
Anyone who has seen any gambling advertisements will know there are plenty of bonuses that are being offered by companies. Players making deposits can see the amount they place in their new account matched by the online casino. They can also be offered free spins on top slot games – perhaps one based on a movie – when joining the site.
This all sounds very attractive but new online casinos have come under fire for the terms and conditions that are attached to such offers. This is where the problems have been taking place and it is always a good idea to read in full all the terms and conditions that are in place for any bonus.
Wagering requirements have been a major problem. It is not a case of the new player receiving a bonus from which they get some good wins that can then be withdrawn. Players need to meet a wagering requirement before a withdrawal can be made.
Sometimes these wagering requirements have been extremely high, say 25x the value of free bets or winnings from free spins. This can make it very difficult for any funds to be withdrawn from a bonus.
It is not just welcome bonuses that are offered by online casinos. Once a customer has started playing with a site, the casino will be keen to ensure they keep playing. More bonuses are regularly offered to players and again they may have strict terms and conditions.
It’s not just the high wagering requirements that have been criticised. The whole bonus system is seen as being dangerous to some players. Those that are beginning to have problems with their gambling may be considering self-excluding themselves and seeking help. When they see the online casino offer what look to be attractive bonuses, they may well decide to stay on the site and continue gambling.
It is hoped that the new 10x cap on wagering requirements will help the situation. Even so a player that wins £50 would still need to wager a further £500 before a withdrawal of funds is possible from their account.
In an attempt to reduce gambling harm, the License Conditions and Codes of Practice (LCCP) are being reformed. The changes to wagering requirements is only part of this reform. Other changes are aimed to prevent what is termed ‘cross-pollination’ between different types of gambling products. For example, a player used to betting on sport being offered some free spins for the online casino.
Another aim of the changes is to simplify the terms attached to bonus terms. These are often far too complex and it’s no surprise that many players simply don’t read them in full or just don’t fully understand them.
In anticipation of the changes, several online casinos have already been adjusting the bonuses that they offer. There has been a move towards offering offers that are more transparent with wager-free promotions or cashback offers.
There are still problems that may be faced by gamblers at UK online casinos. Game weighting sees casinos able to assign a reduced contribution rate to some games. The contribution to a wagering requirement if playing a certain game may only be £0.25 if £1 is wagered. If a player only gambles on that game, then a 10x wagering requirement suddenly becomes 40x.
Another problem is that the new rules only apply to sites licensed by the UKGC. There is a growing number of unlicensed online casinos in the UK. These do not have to follow the UKGC rules and will still be able to offer customers attractive looking bonuses that actually have high wagering requirements or other strict terms and conditions.
It will be interesting to see what happens when the changes come into force in December. Companies are likely to find other ways of offering bonuses that still aren’t quite as attractive as they may seem.