Navigating Direct Marketing Changes for UK Remote Gambling Operators: Insights by Richard Williams of Keystone Law
Gain insights into the upcoming changes in direct marketing regulations for UK remote gambling operators, provided by Richard Williams, Partner at Keystone Law, in this exclusive article for Gambling.Re.
DIRECT MARKETING – SR CODE 5.1.12 (REMOTE CASINO, BINGO, BETTING LICENCES)
The rules around direct marketing for remote casino, bingo and letting licensees in Great Britain will change from 17 January 2025, when new SR Code 5.1.12 comes into force. These provisions do not apply to lotteries and land-based operators.
In the White Paper “High Stakes: Gambling Reform for the Digital Age”, issued in April 2023, the Government said, “the Commission will also take forward work to strengthen consent for direct marketing for online gambling, with both new and existing customers given more choice on what offers they want (including requiring consent to “cross-selling” new products) and how marketing is sent to them”. These proposals arose out of concerns, raised in responses to the Government’s call for evidence, about gambling customers being encouraged by operator marketing materials to try new forms of gambling (e.g. giving free slots spins to sports bettors).
The White Paper included proposals that were to be explored through consultation. These proposals included a separate and clear opt-in to marketing, opt-in to different forms of marketing communication and a separate opt-in to bonuses.
The Commission’s consultation response on direct marketing was issued on 1st May 2024. The Commission has now confirmed that new SR Code 5.1.12 (Direct marketing preferences) will apply to all remote casino, bingo and betting licences from 17 January 2025. The new rules do not require a separate opt-in to bonuses, as was originally proposed. The new rules do not apply to push notifications.
The new provisions mean that:
· Pre-ticked opt-in boxes or opt-out of marketing can no longer be used.
· All new and existing customers must be allowed to opt-in (provide specific consent) to direct marketing on a per product and per channel basis:
o Channel options – phone call, e-mail, SMS (text) (opt-in is not required for push notifications)
o Product options – betting, casino, or bingo.
· These opt-in options must be offered as part of the customer registration process.
· Licensees must not encourage customers to change their selection (the only option given must be to accept or decline direct marketing).
· Customers must not receive direct marketing for products or via channels they have not specifically opted-in to.
· Customers logging in for the first time after commencement of SR Code 5.1.12 must confirm their opt-in marketing preferences before they are permitted to gamble.
Operators should now review their sign-up procedures, to ensure they can comply with these requirements. From 17 January 2025, if specific consent has not been obtained, marketing to all existing and new customers must cease. The inability to cross-sell gambling products without a customer’s specific consent will have a material commercial impact for some gambling operators. Operators should therefore consider the commercial impact of these changes on their business.