Gambling as in industry is wholesome, crowded, fast-paced, and competitive. From retail outlets to online stores, to high-end football jersey sponsorships and attractive TV campaigns, gambling marketing has come a long way and is ever-present in modern life as well.
However, the business industry is in a state of flux due to the legislation that came into effect on the 1st of April, 2019. It has slashed the maximum limit per spin on FOBT (fixed odds betting terminals) to £2 from £100. Globally, betting shops were referred to as the crack cocaine of gambling because of their addiction factor. Punters tend to lose substantial amounts per spin.
Challenges Faced By Bookies
Bookies have faced innumerable challenges due to myths related to gambling. With the start of the 2019-2020 football season, there was a ban on the whistle to whistle advertisements. This meant that gambling advertisements could not be shown during live sports before 9 pm in the UK, from 5 minutes before the start of the event and until 5 minutes after it was over.
Gambling brands signed up for the ban in December 2018 and stated that they were responding to the public’s concerns. During World Cup 2018 coverage, advertisements were for 90 minutes during the matches. The new football season marked the introduction of VAR, or Video Assistant Referee, to the Premier League. It reviews decisions given by the referee using video footage and relays their decisions to the pitch. This innovation has had a major impact on in-play betting.
Changes Within Gambling Brands
Due to several changes in the UK, gambling brands except for non-UK slots sites were encouraged to explore and diversify opportunities for the future. The US market became the key target after the federal ban on sports across 46 states was lifted in May 2018. This allowed betting companies to take bets on professional and college sports as well.
Along with the increase in interest in esports betting, the rise of sports for women and the role of voice search will play in betting if the industry is changing at a faster pace. All of these changes will have an impact where the FOBT stake cut has the major potential for disrupting high street gambling brands most significantly. According to the Financial Times, it states that this could lead to the closing up of one-third of the betting shops in the UK which is roughly about 8500.
Online Gambling Over Betting Shops
GVC Holdings is the company expected to shut down around 1000 out of its 3475 betting shops due to the stake reduction. William Hill also has a plan to shut down around 900 of its 2300 shops and has written to around 2000 landlords who seek rent cuts that go up to 50%.
In certain cases, the revenue that is generated via online betting is increased over the retail offers. For example, Paddy Power Betfair generated £948 million in revenue via online gambling during 2018 when compared to £331 million from its retail betting shops which adds up to 626.
Digital Landscape Of Gambling In The UK
Shifting toward a digitally advanced strategy might insulate gambling operators from falling out of the UK FOBT Stake cut. It would also mean competing with established digitally advanced brands only. The digital landscape over the past five years has majorly changed, says Elen Barber, the CMO of Kindred Group, the parent company of 32 Unibet and Red.
The pace of change in the gambling industry has been faster than the growth of any other industry in the UK that generates major revenue. The Kindred group was working on developing a betting prototype for voice-controlled sports betting that would be specifically designed to understand and comprehend gambling slang.
Advanced Betting In The UK
The insight, techniques, and technology used in the gambling industry make it one of the most lucrative and advanced marketing sectors as per Paul Askins, the marketing director of Betway. He further adds that Betway has focused on a lot of resources to make the best use of the latest technologies available.
The newest approach to gambling brings in optimization via Artificial intelligence and this ensures targeting the right punters, providing the right message via the right channel. This is what builds up success.
How To Make Regulations Work?
For betting operators, reacting immediately and effectively to market change is an indication of pivoting when challenges come in the way, such as the ad ban on the whistle to whistle. GambleAware had welcomed the ban with open arms, as explained by Iain Corby, who further mentioned that the charity had always been aware of the number of gambling advertisements on TV.
As per him, there lies no significant evidence that gambling advertisements lead to problem gambling and similarly, there is no evidence to reassure people that it doesn’t either. Thus, the charity works hand in hand with new UK regulations, including the GamStop, which would directly help in reducing the number of gambling punters and would also provide an opportunity for parents to sit with their children in front of the TV knowing that they won’t come across any such advertisements.
Building Of Trust
Having a resourceful, strong brand identity ensures cutting through the market rife with prominent competing odds and a lack of loyalty. Gambling promotions over the television media have become quite focused on offers delivered through shouty, stale, and stereotypical ads.
With a more sophisticated online gambling customer base, the charity has also moved on and now focuses on building an emotional connection with the customers. Sponsorship strategies see it partner with football clubs like Roma, and West Ham. Betway looks forward to achieving credibility, awareness, and trust.
Sponsorships
Around 60% of the Premier League and Championship clubs have gambling companies as their shirt sponsors. Sponsorships are a major spending area for the Kindred Group, which drives awareness across horse racing, football, and darts.
Unibet has partnered with Aston Villa and is the official betting partner of 32 Red sponsors Championship side Derby County, Investec Derby. It is also helping to expand the mental health program of Derby County which encourages men to open up about their mental health and well-being.
Conclusion
Besides the growth of self-exclusion schemes, the gambling industry in the UK has undergone massive changes over the years due to legislation and advertisement rules. Gambling has continued to rethink its marketing approaches whenever needed to get along with the crowd and build a healthy customer base.