Pulse
Optimove: How to obey responsible
gambling protocols and make a profit
iGaming brands run the risk of endorsing unhealthy player behaviour if they lack the tools to mitigate red flags, but operators don’t need to lose out by enforcing regulations
In 2019, the total sum of violations for operators failing to meet RG regulations was £17M. Tis is nearly the same amount of money accumulated in the entirety of 2021, causing operators to rack up over £15M in fines. If there were ever any doubts about regulators’ intention to enforce responsible gaming regulations strictly, the first three months of 2022 dispelled them.
RG regulations are not going anywhere, and the industry will continue to grow quickly. Player protection rules will continue to be enforced because like any fast-growing industry, statutes must be made to protect not just the consumers but the producers as well. And it may seem surprising, but socially responsible gaming makes more sense financially than the latter.
Maturity plays a key role in determining a players’ excessive or problematic gaming behaviors. RG considers the main three types of operator vs. player experience levels as seen in the industry:
1. Basic: Operators who give the players the full responsibility of opting out at any time during the playing cycle. Tis is the most elementary requirement in most regulated regions.
2. Competitive: Operators who take a portion of responsibility exploring player behaviors prior to self-exclusion. Identifying and segmenting self- excluding customers allows operators to identify suspicious mannerisms and make changes accordingly.
3. Advanced: Operators who use machine-learnt algorithms to distinguish which players are demonstrating problematic gambling behaviors. Predictive models are beneficial it does not hold the operator solely responsible for player health. With this kind of technology, they can not only
Motti Colman Senior Director of Sales, Optimove
pinpoint red flags but also provide useful content to the player along the RG journey.
"In the modern iGaming world, you don't have to choose between revenue and socially responsible gaming," said Michael Pollock, Spectrum Gaming Group's Managing Director.
"Te companies that tend to be the most
profitable and the market leaders are the ones that take this responsibility seriously for several reasons. One, if you're irresponsible, you're leaving your customers dry. You want the customer to afford what they are spending. Tat's the heart of responsible gaming. Two, if you want the public's trust, RG has to be front and center in your business practices. And three, if you don't take this responsibility seriously, regulators will prevent your brand from renewing your license."
Although there are many gaming operators who do not share Michael’s perspective on the issue, legalized gambling is a young industry with a future defined by the parameters set by facilitators. While many operators do use and enforce RG programs, it can be difficult to find that balance between traditional marketing and
responsible gaming marketing. In order to maintain a profitable and sustainable business model where nobody has to lose out, operators must adopt modern strategies to become leaders of the solution to this issue.
Within the framework of an AI platform as described, RG regulations can be enforced using a players’ historical data and real-time activities in order to accurately point out or predict risky behaviors. Together with traditional CRM marketing, RG marketing demonstrates best- practices for the future of the gaming industry.
Tese two marketing styles are integrally different. CRM marketing creates journeys consisting of promotional campaigns to measure incremental net revenue while responsible gaming journeys emphasize informational content to encourage players to adopt healthy gaming habits. In conjunction with one another, operators can measure players migrations based on their risk level and overall retention rate.
Segmentation is the key to resolving this conflict. By segmenting players into tiers based on their risk levels and adjusting the informative-to- promotional campaign ratio accordingly, operators can increase their revenue while enforcing ethical gaming practices.
An identified at-risk player would be reassigned to the appropriate segment by the AI algorithm to continue a responsible gaming journey.
No operator should run the risk of violating responsible gaming regulations at the expense of another persons’ livelihood. An advanced CRM Marketing platform, like Optimove, allows operators to monitor player migration from one risk level to another and adjust their marketing strategies accordingly to adhere to iGaming regulations.
Te main solution to the issue is focused on understanding the problem, rerouting the player, and - if necessary – taking a back seat. Responsible gaming’s’ message is rooted in knowing when to take that step back, so why not avoid disaster and let AI technology step in and help?
NEWSWIRE / INTERACTIVE / MARKET DATA P93
RESPONSIBLE GAMBLING OPTIMOVE
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