By: Rachel Swann, Commercial Director of 3radical
January was a very busy month in the news for the gambling industry in the UK, with one of the biggest news stories coming from the UK Gambling Commission (UKGC). Following a 12 week consultation the newest legislation to impact the sector is the ban on the use of credit cards in online gambling transactions. So as we started to discuss if any other territories will follow the UK’s lead we thought - is that even the point?...
The point is not who will follow the UK’s lead, or even what impact the credit card ban actually has. The point is that the industry as a whole is under an intense public spotlight at present, negative media attention is only going to continue, and the more mature the industry gets the more legislation will be implemented. The only way for operators to ‘win’ in this current climate is to protect players throughout the entire customer journey. If that journey is to play responsibly and wager, then great, but only as long as operators are providing the entertainment factor.
This legislation was probably a long time coming in the UK, and whilst we are a little dubious on its ability to change the problem gambling behaviour exhibited by 22% of credit card gamblers, there is no doubt that this is a positive step. However, our experience has been that operators really need to be able to use data to identify, understand and ultimately protect their vulnerable players. At 3radical we have always taken the view that, mainly (but not wholly) thanks to the UKGC legislation, the UK gambling industry is actually way ahead of other industries, and also other geographical territories when it comes to protecting and knowing who their customers actually are.
What does this mean for new and existing markets?
So with existing and new markets opening up, and as operators and brands grow, business models will need to be transferable and scalable, which also extends to best practice. It makes sense, therefore, for those companies that have international expansion aspirations - and from what I can see this includes the majority of operators of all shapes and sizes - to develop best practice commercial models that include player care across the entire player life cycle, and implement the same best practice infrastructure in each geographical territory they expand into.
The question then becomes one of how, as with other recent legislation, operators turn this into an opportunity? If the base premise of values, entertaining, longer-term player-operator relationships and the framework to do this is already in place, this then allows a business to not only personalise player journeys and interactions, but also spend less time reinventing the wheel. This will give them more time to make cultural and market amends in the knowledge that they are being compliant and responsible with a longer-term market presence. That way, if legislation such as the credit card ban - or moves in allowing the use of cryptocurrency, for example - arises in the new territory, the implementation becomes less of a fundamental business game changer and more of an amendment to existing models.
In other words, if your basic fundamental operating structure is sound with a mutually beneficial and with commercial player-operator relationship building at its heart, then the market in which these operators are operational is important for its size, culture and language. Every market needs to have proven identifiable players, with access to funds and the ability to deposit and withdraw. So, actually, whether other markets follow suit and impose the credit card ban may not be the question we need to be asking; maybe it's more pertinent to ask who, regardless of size, has the fundamental player engagement model to be able to engage in the geographical territories that it wishes to. And it all comes down to medium- to long-term conversation and dialogue as opposed to the fast and short-lived historical acquisition model of earn and burn.
About 3radical
3radical allows individuals to interact with organisations on their own terms. Voco’s real-time decisioning engine is able to combine game science theory, data accumulated from billions of interactions, and real-time self-reported data, resulting in the optimum blend of interactive content, rewards incentives and channel for each engagement. The self-reported data is willingly and transparently provided in return for a value exchange, and can be used to improve the relationship of the individual with the organisation across all channels, and by informing product and service development.
These solutions are powered by Voco, 3radical’s award winning gamification platform. 3radical Voco has a set of built-in best practice mechanics that enable business users to create interactive journeys that deliver contextually relevant, highly rewarding experiences, in the moment, via digital channels such as web, email, mobile app, social and chat. The results are exceptional, with leading brands like Daub Alderney, Foxy Bingo, Zizzi, DBS Bank, Dell, along with many more all benefiting from this transformational approach to audience engagement.
