The Gambling Commission is delaying the implementation of an update to the Social Responsibility Code on direct marketing by consent. The update’s original wording suggested operators may have to deny service to players until they set their marketing preferences.
The update will now come into force on 1 May 2025, instead of the original date of 17 January 2025, the Commission announced in a statement issued on 27 August.
Operators said the original wording for paragraph six of the Social Responsibility Code section 5.1.12 – a new addition to the Licence Conditions and Codes of Practice (LCCP) – was unclear.
Licensees warned the language used suggested they would have to deny service to already opted-in customers until they confirmed their preferences.
“All customers logging into their account for the first time after the commencement date of this provision are required to have confirmed their marketing preferences in line with this condition before they are permitted to gamble.”
original wording of SR Code 5.1.12, paragraph six
Operators also queried whether they could transfer customers’ existing preferences under 5.1.12.
The Gambling Commission confirms marketing preferences can be mapped across. However, this is only permitted once the player has opted in to receive direct marketing for specific products and through specific channels such as email or text.
If they have not done so, the player must be presented with an opportunity to update their preferences upon login from 1 May 2025.
“Existing customers who have not already opted out of marketing must be asked at their first log-in after commencement of this provision to confirm their marketing preferences if they have not done so already. Existing preferences can be copied over providing they match the format of this requirement.”
Updated wording of SR Code 5.1.12, Paragraph six
These updates could have major implications for operators, gambling lawyer Richard Williams of Keystone Law told iGB.
“Marketing restrictions are likely to hit operators’ bottom lines as they will no longer be able to cross-sell without actual consent,” Williams explained.
“They will have to turn off marketing to existing customers who do not give consent. Soft opt-ins (pre-ticked boxes) can no longer be used and operators are going to have to be more creative in their marketing, maybe using in-app notifications more.”
Update follows Gambling Commission’s response to direct marketing consultation in May
The Gambling Act review white paper determined there was a case for additional requirements around obtaining consent for direct marketing.
The Gambling Commission launched a consultation in May 2023 in response, asking for industry feedback on a new addition to its Licence Conditions and Codes of Practice (LCCP). This update sets out the new requirements for direct marketing opt-ins.
In May 2024, the Commission explained players were incentivised to start playing new products through direct marketing, which raised potential risks of harmful gambling. The move seeks to curb frequent cross-selling across verticals.
Commission launches affordability checks pilot tomorrow
The revised timeline comes as the government and the Gambling Commission implement key elements of the Gambling Act review. Tomorrow (30 August) one of the biggest changes is due to come into effect.
The Commission will launch a pilot scheme for affordability checks, requiring operators to flag instances of debt or financial vulnerability shown by players. This will not affect consumers, instead using historical customer data initially, then live data without taking direct interventions.
Running for up to seven months, the pilot aims to assess the most effective way of carrying out the checks on players.
