The online gambling industry is undergoing a major transformation, with comparison sites (affiliates) now demanding a voice in regulatory decisions. Martyn Hannah, co-founder and CEO of Comparasino, is making an urgent appeal to European regulators.
A crucial but often neglected role
Online comparison sites serve as an entry point for many players seeking information about online casinos. They provide information on legal platforms, available gaming options and responsible gambling practices. By directing players to licensed operators, affiliates help channel players into safe and regulated gaming environments.
‘Online casino comparison sites play a crucial role in the regulated market ecosystem but are often left out of discussions about regulatory frameworks,’ points out Martyn Hannah.
In some countries, such as Finland, measures are being considered to ban affiliates altogether. This approach could deprive players of a valuable source of information and reduce the effectiveness of efforts to channel them towards legal operators.
The impact on channelling players
In markets such as Sweden and the Netherlands, channelling rates to legal operators remain below expectations.
‘Why would you remove a channel through which to drive players to licensed operators?’ asks Hannah.
Affiliates don’t just direct traffic to online casinos; they also play a key role in educating players about responsible gambling. By providing information on deposit limits, self-exclusion tools and the risks associated with gambling, affiliates help to protect players.
Negative perception, an obstacle to be overcome
One possible reason for the exclusion of affiliates from regulatory discussions is the negative perception associated with certain industry players. Unscrupulous behaviour on the part of some sites has tarnished the image of affiliates as a whole. For example, some sites specifically target self-excluded players by directing them to unregulated platforms, a reprehensible practice that damages the industry’s reputation.
It is essential to recognise that these players do not represent the entire affiliate sector. Many companies, from listed giants to passionate independents, are committed to promoting safe and responsible gambling practices. By recognising this diversity, regulators could work with trusted affiliates to improve the regulatory framework.
The difficulties created by stricter regulations
While regulation of the gambling market is necessary to protect players and ensure a balanced legal framework, overly stringent restrictions can have undesirable effects. Stricter rules on advertising, sports sponsorship or affiliation can reduce the visibility of licensed operators, leaving a vacuum exploited by illegal sites. When traditional communication channels are restricted, players are likely to turn to unregulated platforms, where there is less protection and greater risk.
In some countries, such as the Netherlands, the introduction of strict restrictions on advertising has led to a fall in the visibility of legal operators, making it more difficult to channel players towards secure sites. Excessive restrictions can also drive some affiliates out of regulated markets, limiting access to objective and transparent information for players. Overly rigid regulation can therefore prove counter-productive, strengthening the black market rather than curbing it.
Towards organised representation
The exclusion of affiliates from regulatory discussions deprives the industry of a valuable perspective. These players, although often perceived as mere marketing intermediaries, actually possess in-depth knowledge of player behaviour, market trends and the challenges involved in promoting responsible gambling. Their expertise is based on years of data analysis and interactions with players, enabling them to identify the public’s needs and expectations long before these trends become visible to regulators.
Hannah is therefore calling for European regulatory bodies to recognise the role of affiliates and offer them a seat at the negotiating table. Greater collaboration between regulators, operators and affiliates would make it possible to put in place rules that are better adapted to the reality of the market and better aligned with player protection objectives.
The regulation of bonuses is a perfect example of the expertise that affiliates can contribute. In the UK, excessive caution on the part of operators has led to a standardisation of offers (100% bonuses up to £100), driving some players to unlicensed sites offering more attractive bonuses.
Hannah calls for the creation of a professional body to represent affiliates:
‘The best way of bringing comparison site operators into regulatory conversations is through a trade body that represents us.’