Affiliates as gatekeepers of responsible gambling
December 23, 2024

Affiliates as gatekeepers of responsible gambling

The recent Safer Gambling Week in the UK and Europe highlighted the industry’s commitment to fostering responsible gaming practices. This annual initiative serves as a vital reminder of the shared responsibility between operators, affiliates, and regulators to protect users and promote sustainable gaming habits. With the rise of affiliate-driven traffic in the iGaming ecosystem, discussions about their role in supporting safer gambling have become more pressing than ever.

In the first of a two-part series, SiGMA News looks at this issue through the eyes of affiliates. Part two delves deeper with expert opinions on responsible gambling, offering an extensive insight into the evolving strategies shaping the iGaming landscape.

A panel discussion at the recent SiGMA Europe 2024 brought together industry leaders to explore how affiliates can balance their commercial goals with the promotion of responsible gaming. Moderated by Eugene Ravdin, Head of Communication at Mighty Tips, the session featured three distinguished speakers:

  • Alessandro Gherardi, Co-Founder and Director of Fomento Agency, an affiliate marketing veteran with over seven years of experience in both regulated and unregulated markets.
  • Jekaterina Dubnicka, Head of Marketing and Communications at Slotsjudge, with a decade of expertise in responsible marketing strategies and user-focused design.
  • Vasilii Gamov, CEO of Peaky Ads, a leader in innovative affiliate marketing solutions, focusing strongly on sustainability and compliance.

The panel discussed critical issues like user safety, traffic quality, and promoting responsible gambling through affiliate channels. They shared insights about how affiliates are evolving within the gaming industry.

The role of affiliates in responsible gambling

Affiliates serve as the first point of contact for many users entering the gambling ecosystem, a role that places significant responsibility on their shoulders. As intermediaries, affiliates influence user behaviour through the brands, bonuses, and content they promote. This pivotal position puts them in a unique position to enforce and encourage safe gaming habits, making them essential players in the drive toward a safer gambling environment.

Alessandro Gherardi emphasised the necessity for affiliates to integrate user verification processes. In emerging markets like Brazil, where regulation is on the horizon, these measures are critical. According to Statista, projected revenue in Brazil’s online gambling market could reach approximately $1.97 billion (£1.54 / €1.81 billion) in 2024, with an expected annual growth rate (CAGR) of 15.44 percent from 2024 to 2029, leading to a projected market volume of around $4.03 billion (£3.14 / €3.71 billion) by 2029.

Addressing challenges in user safety

Gherardi explained that updating platforms with tools such as age verification, time limits, and spending caps is no longer optional. It is essential to ensure user safety and compliance with future regulatory standards. “Affiliates must stay ahead of regulatory changes,” he noted, “and be proactive in protecting their users.”

Jekaterina Dubnicka brought a stark reminder of the risks of inaction. She highlighted statistics showing 25 percent of young people in the UK began gambling before the age of twenty-one, with many encountering gambling products as early as fifteen. Dubnicka argued affiliates must take a stronger stance on user safety, adopting tools like age verification to prevent underage gambling. While implementing these measures may require additional costs and effort, she stressed that the investment is necessary to safeguard users and the industry’s reputation.

The impact of early gambling exposure

The findings of the UK Gambling Commission’s 2024 Young People and Gambling Report echo these concerns. It revealed 31 percent of 11-16-year-olds in the UK had spent money on gambling in the last year. Alarmingly, much of this activity stemmed from exposure to gambling through advertising and affiliate links, raising fundamental questions about the responsibility of industry stakeholders. The report highlighted 22% of young people had taken part in illegal gambling activities, like online slots and sports betting. A recent Sky News investigation revealed that illegal online casinos are using one of the most popular video games in the world to lure children as young as 12 into the unlicenced gambling sphere.

Andrew Rhodes, Chief Executive of the Gambling Commission, has consistently advocated for stricter measures to protect young people. Speaking on the report, Rhodes emphasised the need for systemic change:

“The industry has a collective responsibility to ensure children and vulnerable groups are not exploited.”

He further highlighted the critical role of affiliates, stating “those on the front lines of user acquisition must lead by example, fostering an environment where safety is non-negotiable.”

The panel reached a consensus that affiliates need to prioritise quality over quantity in their traffic acquisition efforts. This shift includes prioritising compliance and transparency, which not only protects users but also builds trust with operators and regulators. Both emphasised that user safety should be a fundamental principle, not simply a matter of compliance.

Affiliates have a major influence on the gambling industry’s future, and this requires taking steps to guarantee responsible and safe use of gambling products. By implementing these practices, affiliates can elevate their role as gatekeepers of a safer gambling ecosystem.

Quality traffic drives long-term success

A common concern among affiliates is that implementing responsible gaming measures might deter users, thereby affecting traffic and revenue. However, the panellists argued prioritising quality over quantity is not just an ethical imperative but also a smart business strategy.

Vasilii Gamov highlighted the value of focusing on qualified traffic. He explained that responsible gaming features, such as age verification and budget caps, might initially lower click-through rates (CTR), but they ultimately attract higher-quality users. These users are more likely to engage sustainably and remain loyal, creating long-term value for affiliates and operators alike. “While the short-term numbers might look less impressive,” Gamov said, “the return on investment is far greater with a responsible approach.”

Recent market data reinforces this focus on sustainability. The UK Gambling Commission’s 2023 annual report found that approximately 0.3 percent of adults in Great Britain, around 170,000 individuals, are in the ‘problem gambler’ classification. In addition, 1.2 percent, or around 680,000 adults, fall into the moderate-risk category, with a further 1.8 percent, equating to 1.02 million people, identified as low-risk gamblers. The statistics illustrate the widespread harm caused by gambling in the UK, emphasising the need for initiative-taking measures to reduce these risks.

Gamov argued that affiliates who target vulnerable or underage users risk not only reputational damage but also regulatory penalties. “The risks of failing to comply far outweigh any perceived benefits of higher CTR,” he added.

Jekaterina Dubnicka stressed how important careful partner selection and promotion advertising are for affiliates. “High volumes of unqualified traffic can erode trust with operators,” she stated. Unregulated bonuses or predatory campaigns may drive short-term engagement but often lead to complaints, disputes, or damaged reputations. Affiliates, she argued, must act as gatekeepers by vetting brands and ensuring their offerings align with responsible gaming standards.

“It’s better to prioritise quality over quantity.”

“It’s better to prioritise quality over quantity,” she remarked, stressing that irresponsible campaigns not only harm users but also undermine the long-term credibility of the affiliate and the whole industry. Dubnicka cited examples where affiliates successfully restructured their strategies to target more responsible traffic, leading to increased user retention and improved relationships with operators.

The panel also discussed how compliance with responsible gaming practices could serve as a competitive advantage. By showing a commitment to user safety, affiliates can distinguish themselves in a crowded market, particularly as regulators and operators increasingly favour partners with robust ethical standards.

The panellists underscored that responsible gaming is no longer just a regulatory box-tick, but a fundamental pillar for sustainable growth. Affiliates who cannot adapt risk alienating their users, damaging their partnerships, and losing ground to more forward-thinking competitors.

Actionable strategies for safer gambling

The panellists outlined a range of actionable strategies for affiliates to promote responsible gaming and ensure user safety. These practices not only align with ethical standards but also build trust with users, operators, and regulators:

  • Dedicated Responsible Gaming Sections: Affiliates can create specific sections on their websites to provide users with detailed information and resources on responsible gaming. These sections should include simple explanations of available tools, support networks, and tips for maintaining healthy gambling habits.
  • Self-Exclusion Tools: By integrating self-exclusion mechanisms, affiliates empower users to take control of their gambling activities. These tools allow users to voluntarily restrict their access to gambling platforms, providing a critical safety net for those at risk of gambling-related harm.
  • Time and Budget Management Features: Affiliates can support users by offering tools that enable them to set limits on the time and money spent on gambling activities. These features encourage responsible gaming by promoting self-regulation and financial awareness.
  • Self-Assessment Quizzes: Quizzes designed to help users evaluate their gambling behaviours can be a valuable addition. These assessments enable users to identify potential issues early, offering personalised feedback and directing them to appropriate support services if necessary.

The panel praised individual platforms which have successfully integrated many of these features, making them part of a seamless user experience. They observed these websites show how seamless it is to incorporate responsible gaming tools without disrupting the overall design or functionality, guaranteeing they are accessible and user-friendly.

Conversely, they criticised websites that fail to implement these measures, often relying on practices that actively undermine user safety. Examples included platforms that employ auto-play ads, excessive pop-ups, and a lack of age verification tools. These features not only encourage irresponsible gambling behaviours, but also erode trust among users. “When websites prioritise short-term traffic gains over user protection,” Gamov deliberated, “they not only harm their reputation but also risk severe regulatory consequences.”

The panel agreed that implementing these strategies is not just about compliance; it’s about setting a new standard for user engagement in the iGaming industry. Affiliates who take a proactive approach to responsible gaming can position themselves as leaders in an increasingly competitive and regulated market.

Building trust through compliance and education

Alessandro Gherardi reflected upon his participation in this panel with SiGMA News recently and said, “I firmly believe that affiliates are uniquely positioned to lead the charge in fostering a safer gambling environment. As the industry evolves, especially in emerging markets like Brazil, affiliates must not only adapt to regulatory changes, but also set new benchmarks for ethical practices.

“The affiliate sector operates as the initial gateway for countless users engaging with online gambling platforms. This gives us an extraordinary opportunity, and responsibility, to influence user behaviour positively. However, this role also demands a paradigm shift: from focusing solely on traffic acquisition and immediate conversions to prioritising user safety and long-term engagement.

“Integrating responsible gaming tools, such as robust age verification, time limits, and spending caps, is non-negotiable. While these measures may appear to hinder short-term gains, they ultimately attract more loyal, sustainable traffic. This approach strengthens trust with operators and regulators, fostering a reputation for integrity and reliability.

“As highlighted during the panel, Brazil’s burgeoning online gambling market underscores the importance of proactive strategies. With the sector projected to grow at an impressive rate, affiliates must act now to implement responsible practices that align with user safety and compliance. By doing so, we can ensure the market’s long-term viability while avoiding the pitfalls seen in more mature markets.

“Another crucial element is education for users and industry stakeholders.”

“We must demystify safer gambling tools and embed them seamlessly into the user journey. This involves creating intuitive interfaces, offering clear explanations, and emphasising the tangible benefits these tools provide. Affiliates should lead by example, proving that safeguarding users is not just good ethics but also good business.”

Jekaterina Dubnicka spoke exclusively to SiGMA News about safer gambling. “In my opinion, responsible gambling is the key to making the industry safe and user-friendly. I believe that affiliates significantly influence this aspect. The affiliate site is the first thing a player sees before being redirected to the online casino.

“It’s important to prepare proper information for players and use tools like Age Checker to ensure minorities don’t access the platform.

“If affiliates apply corresponding tools to guarantee legal age, the traffic quality they deliver to an online casino and the player’s LVT also improve. Thus, it’s one more way to provide high-quality services, which is a crucial element of the partnership based on trust.”

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