Martyn Hannah, Managing Director of Comparasino, says the direction the government and regulator take with updates to gambling law will determine the long-term success of the market

Great Britain is approaching a crossroads when it comes to online casino and the direction it takes will ultimately determine the viability of the market for all stakeholders over the next few years, including comparison sites such as Comparasino.

This remains a market with plenty of potential. The latest participation figures from the Gambling Commission show high demand for online casino, sports betting and bingo, with around 10 million people (16% of the population) engaging in these activities.

But the regulatory requirements being put on operators are now impacting the experiences they can offer to players while squeezing margins to the point where the UK – once the benchmark for regulated online gambling markets – is no longer sustainable for some.

In the last three years or so, we have seen an exodus of brands with only a small number of new online casinos taking their place.

This should be cause for concern, especially as the consultations from the White Paper rumble on and the changes that will result come into focus – we’ve already had the £2/£5 slot stake limits confirmed with more updates to follow.

Of course, players must be protected so that those at risk of developing problem play receive the support they need long before they reach the point of crisis. But at the same time, we have to remember that just 0.3% of UK players are considered to have a gambling problem.

The real risk for me is that if regulations and requirements continue to tighten, the UK market will no longer be viable for most brands – only the tier ones will be able to manage the slim margins.

This is bad for player choice and ultimately has the potential to push consumers towards unlicensed brands that can offer the experiences they are seeking and this is the opposite of what the changes to regulations are aiming to achieve.

It’s important to remember what players are looking for when deciding where to play – they want generous bonuses, a seamless sign-up process and a great selection of games to explore. They want to do this with reputable brands they can trust, and that’s why licencing is so important.

But the requirements operators must now meet – and any new requirements set to come into force – are at risk of damaging the player experience to the point where many will turn to unlicensed brands. Remember, these sites usually offer a great customer experience, they just don’t hold a licence.

The other day I was sitting with a friend when they signed up for an online casino for the first time. They were genuinely shocked by the sign-up process, especially the amount of information they had to provide and the length of time it took to register and deposit.

They were especially irked by the need to provide their occupation and monthly income. When I said there were unlicensed sites that offered a more streamlined onboarding process – and bigger bonuses – the friend said they’d play at those brands over the licensed site.

Of course, this is just one example but for me, it should raise concerns about how far we go when it comes to limiting bonuses and imposing stringent affordability checks on operators.

The Gambling Commission has indicated that affordability will be “light touch” for most players, but any additional friction really does risk pushing players to unlicensed sites where the sign-up process is quicker and the bonuses bigger.

The challenge is striking the right balance between consumer experience and protecting the most vulnerable, and I have some ideas for how we can do this.

I think operators should be able to offer the bonuses they wish, but they should not be able to impose high wagering requirements – or any wagering requirements, ideally.

Again, I tried explaining how the wagering requirement works to my friend and they simply couldn’t get their head around it.

“So, I have to wager £975 through the casino to unlock £15 in bonus winnings? That’s ridiculous.”

This is also what leads players to ultimately gamble more than they can afford as they make additional deposits in an attempt to complete the playthrough requirement, only to run out of funds or give up having deposited more than they intended.

This is when players can become frustrated. Many find it hard to understand how wagering requirements work, and then when they can’t withdraw their bonus winnings, it leads to a negative experience with the brand but worse, can put them in a state of mind that’s not ideal for gambling.

Player onboarding needs to be faster and more seamless, too. It’s so clunky right now that operators shouldn’t be surprised that a large percentage of players drop-off between landing at a casino for the first time and spinning the reels.

For context, it took around seven minutes for my friend to find a brand, sign up, deposit and play.

There are technologies available now – I’m talking about open banking here – that would mitigate sign-up friction, but would most likely require regulatory approval for operators to be able to use them to improve the sign-up process.

I absolutely believe that operators should be mandated to monitor each and every player in real time, and benchmark their gambling activity against markers of harm. This is the best way to spot problem play early and then make the necessary interventions.

I also think education is vital, and this is where affiliates must do more. Players are often unaware of the licensing process in the UK, and why it’s important to play at licensed brands. Nor are they aware of the tools in place to help them stay in control of their play.

This is something that we have committed significant resources to, with a dedicated safe gaming hub, responsible play messaging on all of our pages and the Comparasino Blog, where we publish articles and interviews with responsible gambling thought leaders.

The UK has always set the standard for regulated online gambling and I hope that this will continue to be the case once the consultations have closed and the final updates to the law are made.

The market might be at a crossroads, but if it goes in the right direction, it has a long and successful future ahead.