Don’t Gamble on the Credit Card Ban

A move we wholeheartedly approve of and one we have predicted for some time.

Person Using a Computer and Holding a Credit Card and Receipts

This week, The Gambling Commission released confirmation that it will introduce a ban on the use of credit cards for all forms of online and land-based gambling. A move we wholeheartedly approve of and one we have predicted for some time.

The ban will come into effect on April 14 and will apply to most offline and all online gambling offerings with the exception of Lottery Products.

Some of the stats published this week reveal that
24 million adults in the UK gamble, with 10.5 million of these gambling online
UK Finance estimates that 800,000 consumers use credit cards to gamble
22 percent of online gamblers use credit cards

It goes without saying that operators and game suppliers alike, will need to find ways to offset this loss in income.

The Emma Barnett 5 live show this morning had gamblers ringing and sharing obvious ways they intend to bypass these changes imposed to protect them. Banning the use of credit cards for online gaming is only the first step in trying to keep people from gambling money they don’t have. More regulation will no doubt follow, with another rise in Point of Consumption tax, or a stake limit to £2 being the most obvious and potentially damaging.

Riding this tide will require revenue streams which are future proof; taking into account not only changes in legislation, but the impact of the current social milieu. For example, in the future, UK banks may voluntarily start doing their bit to protect vulnerable gamblers.

To future-proof the industry, we propose that operators must find a revenue stream that is not controversial and will not be constantly targeted by regulation, taxes and levies: Advertising.

In an industry where profit margins are already slim, traditional belt-tightening will not be the answer. We propose an alternative: diversify your revenue streams. Now. Don’t wait for the tidal wave; surf it.

UK online casino operators hold a massive, unused asset: strictly regulated audiences of rigorously verified 18+ consumers. There is no end to the advertisers that can benefit from access to these audiences: luxury goods, automobiles, high fashion, insurance providers, mortgage lenders…

Now add to this the fact that verified 18+ audiences are elusive. Despite extensive research, it is still difficult to pinpoint the times and places adults, and only adults, will be watching and receptive. Do advertisers just submit to the fact that most viewers will be inappropriate?

Instead, imagine this scenario: You’ve got hundreds of thousands of real-money online gamers active in the UK each month . They are verified 18+; their wallets are open and they’re in spending mode; they’re highly engaged; they select a game to play and a stimulating video ad appears in the 10-15 second window while the game is loading. Married to more personalised data, it’s hard to find a more targeted placement.

In short, real-money online gaming sites are a huge, untapped publisher for brand advertisers.

Why haven’t these audiences been tapped before? Because traditionally, ad networks reflexively blacklist anything related to gambling as not “brand safe”. But looked at more closely, there are no surprises on a real-money gaming site; that’s all they publish, and the consumer is completely brand-compatible.

By publishing video adverts during the game loading experience, operators earn additional revenue that is not subject to point-of-consumption tax. They can offer game suppliers a better share of the revenue. Advertisers reach unique, untapped, highly targeted audiences in buying mode.

Talk to us now to find out how onload{media} can diversify your income streams way ahead of this ban, and help protect your bottom line in this difficult and rapidly changing landscape.


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