Ban on mixed-product gambling incentives coming into force soon
Introduction
From 19 January 2026, gambling operators will no longer be permitted to offer promotional incentives which are designed on the basis that a consumer plays different gambling products.
The revised position will be set out in a new Licence Conditions and Codes of Practice (LCCP) Social Responsibility Code 5.1.1(3b) provision, which will state that licensees “must not include more than one type of gambling product (betting, casino, bingo and lottery) within an incentive”.
Background
The change will be introduced following a consultation on proposed changes to the LCCP, which ran from 29 November 2023 until 21 February 2024. As part of this consultation, socially responsible incentives were considered specifically in respect of high levels of wagering requirements, mixing of products, and the clarity of the relevant LCCP Social Responsibility Code provision, 5.1.1 (Rewards and Bonuses). The topic of incentives was of particular focus following the publication in April 2023 of the white paper, “High stakes: gambling reform for the digital age”, which required the Gambling Commission to consult on the issue.
The Commission noted in the consultation that incentives which combine play on different products (i.e. an offer that combines both free bets and free casino spins) were often a feature of sign up offers. The Commission explained that evidence shows such combinations can lead to customer confusion and an increased likelihood of harm. The consultation therefore considered whether such combination deals should be banned, for both new and existing customers.
In the consultation response, the Commission explained that many licensees disagreed with the ban on the basis that the evidence used to support the proposal was insufficient, and because new changes to the way customers would receive direct marketing (i.e. having more control over what offers they receive) would deal with the Commission’s concerns around mixing incentives. However, the Commission explained that rules around opting into specific direct marketing (on a per product, per channel basis) were different, and didn’t affect how a particular incentive worked in practice. The rule around mixing incentives would deal with incentives wherever they appeared (via direct marketing or otherwise) and would focus on a situation where the terms of the particular incentive covered different products. In addition, the Commission considered respondents’ concerns around the evidence base but concluded that it was sufficient to support the ban.
How the ban will be applied
In a blog post on the Commission website about what operators need to know regarding the ban, the structure of typical incentives is explained. They consist of a required customer activity (which may or may not be related to gambling – such as placing a bet or logging on to an app or website), which is completed in exchange for a reward or prize. Once the ban is in force, it is important that both the activity and the reward/prize relate to the same product category.
Therefore, an incentive which requires a customer to bet £5 to receive a free £5 bet is compliant. However, an incentive requiring a customer to bet £5 and receive 20 free casino spins (or bet £5 and receive £5 and 20 free spins) is not. Similarly, where the customer activity is not related to gambling (i.e. log in to a gambling app), it is important that the reward/prize does not concern more than one product category.
However, the consultation response did make an exception for incentives that enable customers to choose which products to redeem their reward against on an unrestricted basis. For example, where the reward is bonus money or credits, customers may exchange these as they wish. This exception is only valid where customers have complete freedom to choose which product category to ‘spend’ their reward on i.e. all product categories must be available (albeit specific games may be excluded from a product category).
This means, a compliant incentive could require customers to bet £5 and receive £5 to spend on any gambling product of their choice. However, if the reward was instead to receive a £1 free bet, 5 free spins or £10 in cash, this would not be compliant because the prize/reward consists of mixed products stipulated by the operator and therefore does not give the customer unrestricted choice.
The Commission stressed that it was important that the terms attached to such offers were clear, socially responsible, fair and open, and that they would keep this area under review to ensure policy objectives are met.
Next steps
Ahead of the new provision coming into force, operators should check their existing incentives and make sure that processes are in place to ensure new incentives are compliant. Where operators wish to allow customers to use rewards on multiple products, they must give the customer complete freedom to choose which product categories they wish to play.
