Bookmaker News – Skybet Announce End Affiliate Programme

Skybet decision a worry for affiliates

Bookmaker News

Major online bookmaker Skybet has shocked the industry by announcing it is to close down its affiliate programme.

Affiliates are third-party firms who earn a commission from gambling operators for driving customers to their websites. They have become an increasingly important method for online gambling companies to recruit players as conventional advertising has become more expensive. Affiliates earn money either through a one-off payment for every new customer, a share of the revenue they produce, or a hybrid of the two.

But some less-reputable operators have become the subject of an investigation launched by the Information Commissioner’s Office over the large numbers of spam text messages associated with gambling and, following the news that Gambling Commission chief executive Sarah Harrison warned gambling operators they were ultimately responsible if affiliates were found to have broken the rules, Skybet have pulled the plug.

Some affiliates, though by no means all, were also the subject of claims of dubious practice in the Guardian newspaper last week, although it is understood the review carried out by Skybet’s parent company pre-dated that article.

Regulatory pressure is building on the gambling sector from a number of sources as, last week online operator 888sport received a record £7.8 million penalty from the Gambling Commission for failing social responsibility tests over problem gamblers.

The online sector is also waiting to hear results of the Competition and Markets Authority’s investigation into the fairness of its terms and conditions, with Ladbrokes and William Hill among five companies who could be subject to enforcement action. In the high street, betting firms are still awaiting the results of the government’s review of gaming machines and social responsibility measures, with pressure growing for a major cut in the maximum stake available from £100 to £2. There have been a number of stories in the UK media in recent weeks siding with a reduction in maximum stakes and a more stringent attitude to gamblers.