Bonuses and VIP programs are some of the most effective tools that online casino operators can use to welcome new players and build a long-term relationship with them. But in some markets, the era of freewheeling bonuses is coming to an end amid tighter regulations. In a new analysis, Ayvar Gabidullin, Business Development Manager at Slotegrator, explains why operators need to be more flexible than ever before with their acquisition and retention strategies.
New regulations and practices in iGaming
Due to recent changes dictated by regulators, operators are forced to look for new solutions to reward VIP players.
Authorities in some jurisdictions have tightened regulations governing marketing strategies in order to combat problem gambling. In some countries, this has included limits to bonuses and VIP programs.
In January 2019, the Swedish authorities approved a law setting a limit of 100 SEK (€9.50) on bonuses. A month later, a bonus limit of 1000 DKK (€134) was introduced in Denmark. As a result, operators were forced to change their strategy for rewarding players. Some brands, such as Maria Casino (part of the Kindred Group), have begun to use a simple and transparent reward strategy, giving players 10% cashback for weekly losses.
In a high-profile case in September 2020, the UK Gambling Commission fined betting giant Betway £11.6 million (€13.5 million) for falling short of anti-money laundering requirements. Subsequently, the UKGC put forth new licensing requirements to combat what they viewed as irresponsible promotion strategies.
In accordance with the new rules, operators must maintain a database of players’ occupations and sources of income. Regular updates are required to make sure player spending remains within acceptable limits.
Early warning security systems and a new incentive strategy
Operators are finding ways to adapt to the new requirements.
Some are finding ways to demonstrate to regulators that their platform can create responsible VIP programs, while others are trying to negotiate with legislators in order to prevent new, tighter regulations.
Another option is gradually changing the vector of advertising campaigns towards encouraging smart gaming habits instead of focusing on VIP players. And in countries where there are no national registries, operators can cooperate with each other to create a database of problematic and excluded players; that way, users won’t be able to bypass restrictions by simply changing platforms.
But a winning strategy is nothing without the technical capabilities to carry it out.
Slotegrator, a software developer and aggregator for the gambling industry, launched a new online casino platform with a range of updates and new features — including a bonus module. It not only allows you to incentivize players through loyalty programs and promotions, but to do so while complying with (sometimes fluid) regulatory requirements. The developer can adapt the solution to any market. Several of the module’s technical features stand out:
Early detection systems
The module’s early detection security system allows operators to monitor user behavior. The algorithm tracks and analyzes player behaviors like frequency and amount of deposits and alerts the operator of a potential problem in the event of behavior such as jumps in deposit amount or frequency. It also recognizes indicators such as loss chasing, canceling withdrawals, retrying invalid cards, and playing at night. Additionally, the system constantly monitors available funds to help combat money laundering.
Alternative reward strategy
If limitations take the shine off your bonuses, the module allows for a alternative customer reward strategy, such as providing cashback for losses. This solution is useful — and maybe even necessary — in jurisdictions where bonuses and VIP programs are severely limited by regulation.
New VIP rules
The higher a player climbs the VIP ladder, the more likely it is they like to bet big. The bonus module lets operators implement betting limits and bonus wagering rules for VIP players, like wagering and withdrawal limits to make sure it doesn’t break the bank when they hit their jackpot.
Updating their player reward strategies with Slotegrator’s bonus module enables operators to give VIPs the offers they’re looking for while staying compliant with regulator’s demands, strengthening operators’ relationships with both players and authorities.