CMA clampdown - industry reaction

The CMA issued another update on its investigation into the online gaming industry on Thursday morning, saying that customers should always be able to access and release their own money when accepting bonuses.

Ladbrokes Coral, William Hill and PT Entertainment (winner.co.uk and titanbet.co.uk) have formally committed to change their practices, and the Gambling Commission said it wants the rest of the industry to follow.

Below, EGR has rounded up the reaction from some of the industry’s key players:

Goodbody

“While this morning’s announcement represents unwelcome headlines for the operators involved and the sector in general, we do not believe that it will have a significant negative financial impact. It could be argued that there could be an impact on growth rates given such bonuses drove player activity. However, the new guidelines will become the norm across the entire sector thus a level playing field will evolve.

“Also, we would point out that not all players will have been attracted to such bonus activity. We would also argue that since the introduction of the new POCT last August in the UK, bonusing and promotional activity effectively became more expensive and operators have had to adapt their activity anyway. Overall, it is all part of the maturing of the UK industry, which has been ongoing for a while now.”

Remote Gambling Association

“There are clearly lessons to be learned for some companies and we will work with the Gambling Commission and others to raise standards wherever necessary.  We have already held productive discussions with the CMA and the Commission to consider how best to achieve that.”

Industry executive speaking off the record

“I would note that CMA rulings are only applicable to the specific companies i.e Lads, Hills and Playtech in this instance, and do not set a precedent for other companies. As a result I’ve heard from a number of the more aggressive casino firms saying they’re not going to change anything until they are forced to. Which of course, they may be, as the Gambling Commission has threatened regulatory action here.”

Industry analyst Alun Bowden

“The CMA announcement should be viewed as a net positive for the industry, but it would be wrong to view this as a conclusion to the matter. There is a deeply embedded culture of bonusing and while some sites are taking this challenge on head-first with no wagering requirements there is a broader reluctance to change and to stick to what works. If the Gambling Commission, or consumers, want a more radical shift in the use of bonuses in the sector then I’d expect more action will be required in the future.”

Ladbrokes Coral

“Ladbrokes Coral welcomes the conclusion of this CMA review and believes the outcome represents a significant step forward for the industry, and for customers, by improving transparency and clarity.

“We recognised that things had unintentionally gone too far and therefore worked with the CMA and Gambling Commission to find a way to address their concerns.  It is never comfortable being in the spotlight on these sorts of issues but we are pleased that a way forward has now been identified and are committed to ensuring we meet the standards set.”

William Hill

“As one of the largest online betting and gaming brands in the UK, William Hill has worked with the CMA to ensure that its concerns have been fully met.

“We welcome the standards and principles that the CMA has outlined and we look forward to their adoption across the industry.”

Joe Saumarez Smith, chairman, Bede Gaming

“I welcome this, and it’s particularly good for players new to online casino. I think we will see fewer bonuses going forward, but wagering requirements aren’t going to go away, as there’s too much bonus abuse going on in the UK and the sector isn’t just going to start giving money away. However a lot depends on the enactment of these rules. There’s a lot of uncertainty among operators about what is acceptable and what isn’t, and that’s going to persist until the CMA and the Commission send out very clear guidance.”

Victoria Pease, analyst, Edison

“Most of the companies I speak to have been bracing themselves for steadily more onerous regulatory requirements, so this announcement is along the same vein. In the end, my view is that these types of pressures will mean that the larger operators will continue to gain market share, as the smaller players won’t be able to keep up.”

Warwick Bartlett, chief executive, Global Betting and Gaming Consultants (GBGC)

“After a thorough investigation on the part of the CMA I believe the changes proposed will provide a level playing field for all operators, greater clarity for gamblers, leading to more customer satisfaction.  The online gambling industry is known for innovation, and the ability to adapt quickly, I am sure they will be able to meet the challenges and emerge stronger.”

Brian Chappell, Justice for Punters

This announcement gives gambling companies the chance to do the right thing, we hope they take this chance, thus avoiding sanctions. As companies
know, there will be more challenges ahead, unless they stop using unfair T&Cs. It’s time to improve and show all concerned a real commitment to a
fair and open market.”