## Approaching Storm: The Gaming Levy Dilemma
The realm of internet wagering faced a setback last month when ex-Chancellor George Osborne declared in his Spring Budget address that all complimentary or reduced-price wagers will be liable for standard betting duty starting August 1st of the following year.
This presents yet another obstacle for the online gaming sector, although perhaps not as potentially detrimental as the levy on internet promotions. Time is of the essence: in the coming year, businesses must break free from their dependence on free bet frameworks, a fundamental element for numerous websites (and certain operators) for many years. Instead, they must devise novel methods to differentiate themselves, providing authentic value and insightful analysis to entice customers. The onus is on operators to get this initiative underway well before next summer.
Nevertheless, if past experience is any guide, judging by how (or rather, how *inadequately*) information was disseminated to affiliates regarding how point of consumption tax would impact their commission computations, operators are improbable to implement the necessary adjustments to their approaches, let alone relay these modifications to their affiliate “associates.”
Thus, the onus is on partners to aid operators in rebounding. To grasp how, we should examine the jackpot affiliate leaders and their utilization of social platforms to transform the pursuit of substantial victories into a profitable audience for wagering firms – many of whom have pivoted their entire promotional tactics to entice this valuable demographic. Not only have they fueled product development, but they’ve also rendered betting more captivating and attainable for a fresh cohort of gamblers.
Nevertheless, while this persists as a feasible route for partners, incentives geared towards reclaiming the customer type targeted by entities like FootyAccumulators appear to be dwindling. Coral – arguably the bookmaker most intent on securing customers from the younger demographic – has lately commenced clamping down on offer-driven account holders, relentlessly refusing them access to the type of enhanced odds intended to entice a relatively fickle audience to redeposit and disseminate offers within their circles. Indeed, Coral is situated where it must reduce expenditures as it seemingly prepares to potentially divest hundreds of betting shops to gain approval for its merger with Ladbrokes. However, its readiness to economize by targeting this lucrative segment of its database speaks volumes about the strain the new Point of Consumption levy will exert on operators, partners, and, needless to say, their players.
Therefore, it’s insufficient for businesses in each sector of the gaming realm to simply depend on the successes of their sports wagering counterparts if they desire triumph in the largest regulated marketplace available. Users may still utilize those major league gateways to acquire their data, but they are prepared to exert additional effort, truly investigating and contrasting what various gaming enterprises, casinos, card rooms, and bingo platforms provide. The reason? Ultimately, they seek the most favorable return on their investment.
For years, this industry has revolved around dispersing “worth” like confetti – equaling your deposits with incentives, abundant complimentary spins, numerous complimentary wagers, and let’s not overlook those no-deposit incentives and complimentary play promotions. Poker experts and seasoned gamblers understand the true value proposition, though, they pursue those lucrative rakeback agreements and the most favorable odds guarantees – that’s where the genuine (albeit intensely competitive) value resides.
However, circumstances are evolving, and they must.
Currently, the dominant entities in the software domain are dictating the terms. And those aggregator platforms, such as Everymatrix, are not simplifying matters with their stringent prerequisites. This entire ecosystem is hindering innovation. Operators require the autonomy to differentiate themselves, to discover methods not merely to endure when regulations become more stringent but to flourish, to cultivate a devoted following that consistently returns, even without the allure of “Free Funds!” prominently displayed everywhere. We require fresh perspectives, novel concepts – the subsequent bet365 will not materialize out of thin air.
What *proactive measures* can *partnered* members *implement* to *promote* wise decision-making from their operator “partners”? *Permit me* to channel my inner Baz Luhrmann and *present* my thoughts *succinctly*.
*Partnered* members should *direct* their product marketing and brand management teams *toward a particular objective*. On their *webpages*, they should give *acknowledgment* and *visibility* to *emerging* companies within the *sector*.
Casino *partnered* members should *furnish* a platform for *high-caliber* game studios that may not yet *be partnered* with operators, *enabling* them to *display* free-to-play versions through the *partnered* member’s site. Instead of *leading* players to games they already know and love, let them *encounter* what the future holds and *communicate* the results and feedback to *partnered* managers.
Poker *partnered* members should *carefully observe* concepts like the Global Poker League.
Sportsbook *partnered* members should not *dismiss* innovations like BetStars’ Spin & Bet.
Take eSports *seriously*, as it is a *giant*. Counter-Strike item betting/trading alone has *generated* over $5 billion in intrinsic transactional value *worldwide* (that’s twice the size of the *highly praised* daily fantasy sports industry).
*Support* and ensure a unified voice with the UK Gambling Commission and regulatory bodies in key *areas*. This will help avoid *being surprised* and caught off guard by *poorly planned* roadblocks to commerce, such as tax laws or advertising *rules*.
Bingo *partnered* members, *continue your good work*.
Tom Galanis is an online gaming marketing *advisor*.
For more than ten years, Tom has been a leader in the online gaming sector, heading up two dozen collaborative ventures for industry giants such as bet365, Gala Coral, and Rank Group. His strength is in building strategic relationships and fostering expansion, especially for companies within the social gaming realm. He’s a highly sought-after advisor, particularly for organizations like Playstudios, the developer of the wildly successful myVEGAS social casino application. His accomplishments garnered recognition in 2015 when Global Gaming Business magazine included him on their “40 Under 40” list of emerging leaders.