Gambling Industry Adapts: Limiting Profits from Promotions

DanielRemnant
3 min readSep 28, 2023

The gambling landscape is undergoing significant changes as numerous betting companies tighten their reins on those who reap substantial rewards from promotional offers or engage in what’s seen as “unprofitable” betting behavior.

Recent revelations align with evidence presented in a parliamentary inquiry, suggesting that certain bookmakers are actively curbing the bets of successful gamblers while paradoxically encouraging high-risk clients who are known to suffer substantial losses.

Behind this shift lies a strategic response to curb what’s perceived as “exploitation” of promotions. Some bettors have devised methods to exploit promotions, particularly those involving “deposit matches,” where a bookmaker matches the bet amount. They’ve been known to create numerous accounts under various aliases to exploit the offers repeatedly, causing market manipulation.

Strategic Responses to Prevent Promotion Exploitation

However, not all industry insiders are on the same page. Some argue that promotions increasingly serve to retain bettors who are losing money rapidly. The introduction of higher taxes has led to odds adjustments, and promotions help keep such bettors engaged in a bid to recover their losses.

Email correspondences dating from 2016 to late 2022 affirm that gambling firms strategically employ inducements to target bettors they classify as “casual” or “recreational.” Moreover, these companies reserve the discretion to reclassify individuals as “professional” bettors and, if necessary, restrict their betting activities.

Market Manipulation Through Promotions

In 2021, Sportsbetting, now defunct, took a firm stance by blocking access to promotions and imposing betting limits on regular markets for a specific bettor. Their rationale included factors such as exclusively betting on promotional markets and exhibiting characteristics of professional gambling.

Matched betting, a tactic employed by some gamblers to offset bets with other bookmakers, also finds itself under scrutiny, leading to account restrictions for those who consistently employ this strategy.

On the other hand, smaller gambling entities have voiced frustration when customers exploit promotions designed to reward loyal clients engaged in regular betting activities. To address these concerns, some of these companies have resorted to restricting specific accounts.

Ladbrokes’ Approach to Promotion Disqualification

In one instance, Betr, with backing from News Corp, took the route of account restrictions without specifying the reasons. Similarly, Ladbrokes, a part of the global conglomerate Entain, has stated that promotional offers are primarily intended for recreational bettors and that individuals may be disqualified from these offers without prior notice

Entain, however, maintains its commitment to restricting accounts based on professional betting behavior while emphasizing the need to operate a financially responsible business.

Even Australia’s gambling behemoth, Sportsbet, hasn’t been immune to these changes. They’ve limited access to promotional offers to bettors viewed as “recreational” and restricted accounts with a history of excessive promotion use, albeit honoring existing bets.

In summary, the gambling industry is navigating a transformation driven by restrictions aimed at deterring the exploitation of promotions. This development has a far-reaching impact, underscoring the evolving dynamics within the sector as companies seek to strike a balance between profitability and customer engagement.

Either way, be sure to update our list of Australia’s newest online casinos from time to time.

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DanielRemnant

Hello everyone, my name is Daniel! I live in Sydney, Australia. My favorite topic of articles is card games and news from the Australian iGaming industry.