Do you think the UKGC will begin licensing affiliates before the end of 2021?

[MichaelCorfman]

There is a debate taking place about whether or not affiliates should be licensed by the UK Gambling Commission. This past week J.Todd covered the topic in the APCW perspectives weekly video here:

Considering UK Affiliate Licensing: APCW Perspectives for 10 July 2020

And last week iGaming Business published articles on both sides of the debate:

Affiliate licensing: Time to face up to a regulated reality
Why GB online gambling affiliates should not be licensed

Certainly the regulatory changes in the UK have had a dramatic impact on both operators and affiliates over the past year. Operators have been increasingly challenged by regulatory requirements and the need to police their affiliates in order to avoid fines. And affiliates have had to jump through hoops to comply with new requirements, oftentimes with little advance notice.

I think either outcome is possible, and I view there as being continued challenges for affiliates no matter what happens. On the one hand, I think the UK Gambling Commission has their hands more than full regulating operators, so it is easy to argue they simply don't have the bandwidth to regulate affiliates, independently of one's position on whether that would be good or bad.

Being in the direct line of fire from the UKGC, which would happen if affiliates licenses were required, is likely to be a significantly bigger headache for many affiliates than responding to the myriad requests mandated by affiliate programs. It is hard to know in advance what extra costs and administrative effort would be required of affiliates, but it is certain that regulation makes the world more complicated and more expensive for those that are regulated.

For this week's poll I ask how likely you think it is that the UKGC will begin licensing affiliates before the end of next calendar year.

Besides voting the the poll, I invite you to share your thoughts about how likely regulation is over the longer term, how burdensome you feel it would be, and whether you would be more or less likely to be an affiliate in the regulated gaming market in the UK if licensing is ultimately required.

Michael

[Mattbar]

It would be a huge pain in ass to begin with but I think there are merits to licensing affiliates. As things stand we all get tarnished with the same brush but licensing could help sort out the dodgier end of the spectrum.

One benefit of licensing is it makes licensed affiliates more attractive to operators which means we ourselves can build in more protections, such as reciprocal contracts that mean they can't just close an account when they choose to.

I doubt we will see changes this side of a new gambling act, which is due early next year I believe.

[Sherlock]

Do not open the Overton windows.

One benefit of licensing is it makes licensed affiliates more attractive to operators which means we ourselves can build in more protections, such as reciprocal contracts that mean they can't just close an account when they choose to.

Again this wishful thinking contradicting experience. Wasn't the same hope when they started to licence the bookies? And what happened exactly in the countries, where it happened? They robbed us completely.

Our licensing has just one reason: to squeeze more money from us. Nothing, really nothing else. Some things in life are simple.

We can build exactly the same protections, licensed or unlicensed. If the bookies breach something, that would be no problem of our licence, but their licence. But we see it is a zero problem. Betfair, WH, GVC etc etc.

Maybe, really maybe what might work in 50 years, under future state socialism (that will not work anyways), would be one affiliate + gaming state platform, guaranteed by state, all taxes directly deducted by state and profits distributed. But it will not happen. Even my private bankers (the smarter white collars) after many years have a problem to understand what is the revenue share. It is more than naive to thing that some state employed fcuker, whose job is to do nothing, pretend a lot and just get our money, will do something useful for anyone who has no power over him.

We do not have any power so any change will be just being beaten until we die.

[Brokkoli]

One benefit of licensing is it makes licensed affiliates more attractive to operators which means we ourselves can build in more protections, such as reciprocal contracts that mean they can't just close an account when they choose to.

I can't see how this could give us more protections or a reciprocal contract. The same fineprints will continue to govern operator-affiliate relations. If anything, it will be a magnificent excuse to close unlicensed affiliate's accounts on day 1.

[nwalker]

If they are considering Gambling Affiliates then surely it must also cover any type of media promotion of gaming. So that would drag Advertising agencies, TV, Radio, Magazines, Brands etc into the melting pot. Would the expectation be that all these should have a license to promote gambling either directly or indirectly - after all everyone doing so gets paid in some form.

Then the question is should it extend to other forms of affiliate marketing and paid advertising for other sectors.

Where does it stop!

In principle it's a good idea, but i think it needs to be clear what it will achieve and how it will be policed.

It won't stop affiliates abroad marketing unlicensed operators to UK citizens. If anything it will increase that activity.

[MJM]

Personally I would welcome being licensed - it provides a sense of responsibility and accountability for what we do. Given that we are now licensed in several US markets - I am somewhat used to going through the process. Some states have got it right, others have made it a bit of a mess - so to me that is key.

I hate to say this because I got my start in this business due to the fact that anyone could try - but I think the days of hobbyist affiliates are largely coming to an end - and let's be honest, a lot of really crappy/shady/spammy affiliates give the rest of us a bad name, it would be nice to be seperated from that and have a sense of credibility.

I fully realize my opinion won't be shared by many, and I also get the fact that 10 years ago I would have not gotten into the business if this were the case.

[Casino Gamerz]

Its looking increasingly likely now. Controls are going to be stricter in 2021. Licensing for affiliates will decimate the UK market probably with many turning their back on the geo altogther. It could have its benefits though. More advertising options open up with correct licensing for starters.

[Cash Bonus]

For sure. Things are still going to get much harder unfortunately with increasing regulations being enforced and getting more difficult and hard to keep up with.

The fact that the competition and desire to be number 1 in this industry by so many affiliates is also making it harder to rank on social media.

Life has never been so strenuous as it is presently

[AussieDave]

Where does it stop!

In principle it's a good idea, but i think it needs to be clear what it will achieve and how it will be policed.

It won't stop affiliates abroad marketing unlicensed operators to UK citizens. If anything it will increase that activity.

Well thought out points and opinions

In reference to the bold text and an example... When the IGA Bill passed in 2017, all the decent casinos left AU en masse. What took up that slack were an abundance of crooked clip-joints. And more so, non-AU-affiliates pushing these sh#tholes onto AU players.

My point is... What may look good on paper. What may seem like a good solution, doesn't necessarily work in the real-world. Trying to control the internet, is like trying to control the weather or the sea.

By all means there has to be some protections in place, but trying to take 100% control, will only increase the headaches, not reduce them.

[AussieDave]

We do not have any power so any change will be just being beaten until we die.

Affiliates once had a collective power. However, wolves in sheep's clothing mislead us, and in turn, robbed us of those rights.

[Pokerface]

Certainly an interesting prospect that UKGC could start licencing affiliates. Matbar brings some good points as it will make it attractive to affiliate partners.

With the tough stance that many affiliate partners have taken on affiliates we are sort of "licenced" only in the sense of being compliant or agreements terminated. It would be easier for UKGC to mandate the affiliate partners enforce compliance rather than them going after 1000's.

[newcustomeroffer]

With the tough stance that many affiliate partners have taken on affiliates we are sort of "licenced" only in the sense of being compliant or agreements terminated. It would be easier for UKGC to mandate the affiliate partners enforce compliance rather than them going after 1000's.

This was my reaction to this too, especially if you're working with bet365 who are extremely hot on compliance - essentially working with these programs makes affiliates licensed by proxy.