Campaign Continues Against Gambling Bonuses

The subject of bonuses offered by online casinos sites continues to be a controversial one. There are moves in Ireland to impose a complete ban on them. That’s something which has already happened in Brazil this year. There are also many who would like to see a similar measure taken in the UK.

The gambling industry is a highly competitive one and it is a continual battle for companies to attract and retain customers. Offering bonuses is one way in which customer levels are increased and maintained. There are several different kinds of bonuses, including matched deposits, free spins on slot games and the offering of free bets.

Offering such bonuses is not welcomed by everyone. They are seen by some anti-gambling campaigners as incentives to place bets. Critics are particularly anxious about offers being made to those who are struggling with their gambling and looking to stop placing wagers. Being offered free bets can see them continue to play on the site rather than self-exclude themselves and seek help.

The Irish Senate has been discussing the possibility of completely banning bonuses. They are making amendments to the Gambling Regulation Bill 2022 and are coming to the end of the committee stage. The report stage will follow with final statements made before becoming law.

Earlier in their discussions, a complete ban was mentioned. Now however, amendments have been made that allow free bets to be offered. The bill is being led by Deputy James Browne and he says it is impossible to ban all the forms of bonuses offered. Free bets could be provided but there should not be a targeted approach.

Those opposing bonuses have spoken about how alcohol retailers have been banned from offering loyalty card programmes and holding happy hours with reduced prices. Senator Mark Wall is in favour of a complete ban, saying that it is important to “protect the most vulnerable” players.

June of this year saw Brazil make amendments to their Gambling Act. Betting companies will be forbidden from offering bonuses “even if merely for promotion, publicity or advertising, for the placing of bets.”

The new legislation also sets out that payments can only be made by using electronic transfer and not cash, cryptocurrencies or cheque. It’s anticipated that the changes will come into force by the end of October.

In the UK it is still not certain what action will be taken by the new Labour government against the gambling industry. Their manifesto for this year’s General Election said that they were “committed to reducing gambling-related harm.” Reform was promised and they promised to “work with the industry on how to ensure responsible gambling.”

2023 saw the then Conservative government publish a White Paper into gambling reform. Since Labour took power, there has been little mention of just what lies ahead for the UK gambling industry. 

There had been plans to reduce the maximum stakes for online slot games and stricter affordability checks on customers. As the new football season has started, there has been criticism of the number of gambling related advertisements that are being seen.

Calls have been made to impose restrictions on bonuses offered by companies operating legally in the UK. VIP clubs have particularly come under attack as they offer bonuses to players based on how much customers bet with the site.

October sees the budget being held and it will be interesting to see if that includes mention of any gambling-related measures.

Baroness Tywcross is the Parliamentary Under-Secretary of State for Gambling and she spoke about future plans at the recent Labour Party Conference held in Brighton. The minister said Labour had been “broadly supportive” of the 2023 White Paper and recognised that there is a need to protect those at risk of becoming addicted to gambling.

As for what the future holds, she said that civil servants had told her “they have some things that have been ready to go for a long time.” Again, there was mention of a need to “speak to those involved in the sector before proceeding” but this will not be “years” before firm reforms are announced. Whether that will see action taken against bonuses remains to be seen.

One concern is that introducing stricter regulations will drive gamblers towards the black market. That is unlicensed and therefore unregulated and levels of customer protection are considerably lower than at licensed sites.

In Ireland, Senator John McGahon believes that this could happen if bonuses were to be banned. Players would be tempted to join the unlicensed sites who would continue to offer such bonuses. It’s a problem that will be faced in any country that introduces gambling reforms.