Legal Compliance Concerns: Affiliate Sector Divided by GC Working Group’s PPC Restrictions

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The findings of a recent Gambling Commission working group on marketing have sparked mixed reactions among affiliates. The group has agreed to restrict pay-per-click (PPC) advertising to individuals aged 25 and above, which has generated differing opinions within the sector.

The working groups, formed in January by the British Gambling Commission, consisted of three groups dedicated to VIP schemes, marketing, and game design. The marketing group specifically focused on implementing changes such as targeting social media and PPC advertising towards individuals aged 25 and above whenever possible. This decision aligns with the new provision for VIP schemes, which will now only be available to players aged 25 and above.

In addition to these changes, the working group also plans to create a new code of conduct for affiliates. The Gambling Commission will regularly update and amend this code, which aims to ensure legal compliance. Clive Hawkswood, the chairman of affiliate trade association Responsible Affiliates in Gambling (RAiG), expressed support for these new safeguards, particularly in protecting young and vulnerable individuals from potential harm associated with gambling marketing. He mentioned that RAiG had already initiated discussions with the Betting and Gaming Council to develop an affiliate code of practice.

On the other hand, Richard Skelhorn, the founder of PPC-focused affiliate business Atemi, holds a contrasting view. He believes that enforcing restrictions on PPC advertising may lead to increased consumer harm. Skelhorn argues that replacing PPC sites with search engine optimization (SEO) sites in search results could give these sites less incentive to promote licensed casinos, potentially leading to unlicensed casinos being promoted. He questioned the motivations of RAiG, noting that its members were predominantly SEO affiliates who might benefit the most from restrictions on PPC.

Ron Wiener, the chief executive of affiliate Optival, echoed Skelhorn’s concerns and stated that the level of targeting in PPC advertising proposed by the working group is impractical for affiliates. He argued that Google only allows age segmentation for users aged 18 and above, with further breakdowns available only retroactively. Hawkswood responded by stating that the practicalities of this restriction would be discussed in a forthcoming RAiG meeting in May. He believed that operators and the Gambling Commission would understand that the restriction should only apply if age segmenting is technically possible, placing the burden of proof on affiliates.

The changes agreed upon by the working groups will be implemented by operators. The Gambling Commission plans to conduct consultations on whether to incorporate these new controls into its Licensing Conditions and Codes of Practice (LCCP). While the advertising and VIP scheme changes were considered sufficient, the Gambling Commission claimed that the game design group needed to put in more effort to protect consumers from gambling-related harm. Playtech, alongside SG Gaming, led the game design working group and expressed commitment to collaborate with the Commission to establish higher standards of player protection in the future.

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Karol Petersen is a distinguished writer with a fervent interest in the realms of gambling and online gaming. With a career spanning over a decade, Karol has developed a comprehensive understanding of the gambling industry, including casinos, sports betting, poker, and the burgeoning online gaming sector. Known for his meticulous research and engaging writing style, Karol provides readers with in-depth reviews, insightful strategies, and up-to-date industry trends. His work demystifies complex topics, making them accessible and enjoyable for both beginners and seasoned gamblers. Karol's articles are trusted resources, offering practical advice and expert analysis that empower readers to make informed decisions and enhance their gaming experience.
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