Customer retention is a strong priority for businesses across almost every major sector. All businesses understandably thrive on repeat customers. However, few industries face the same level of scrutiny over how they interact with consumers as the online gambling sector.

Operators, game developers and online casino platforms have to adhere to a long list of requirements covering advertising, consumer protection, responsible gambling and customer complaints.

Clearly, those rules are specific to the gambling industry, but the broader principles are increasingly becoming relevant across many other industries. With greater focus on transparency, informed decision-making, and consumer welfare, the gambling sector offers an interesting case study for marketers seeking to learn from the ongoing evolution of regulatory oversight.

Engagement and Consumer Choice Are Not the Same Thing

A common theme coming from regulatory discussions is that consumer engagement is sometimes incorrectly confused with informed consumer choice. A report by the Competition and Markets Authority (CMA), Online choice architecture: how digital design can harm competition and consumers, has revealed how online choice architecture is known to impact consumer behaviour online.

The biggest takeaway is that it highlights how small design choices can have an influence on consumer decision-making. Small details, such as where a product ranks in the search engines and the number of steps needed to cancel a subscription, can be influential. Customers are pointed in a particular direction through subtle design choices, even if the product is not particularly suited to the player’s best interests.

It’s clear the report is not specifically about gambling, but its findings are highly relevant to any sector that is reliant on customer retention, which is most. For marketers, the challenge lies in creating effective customer experiences while ensuring consumers retain meaningful control over their decisions. The customer journey is increasingly becoming a core focus of regulatory authorities, so transparency is now a major consideration.

Customer Outcomes Matter More Than Business Intentions

Another lesson marketers could learn comes as a result of the UK’s approach to customer/player protection at online casinos, overseen by the UK Gambling Commission (UKGC).

In recent years, UK gambling regulation has introduced a range of measures intended to strengthen consumer protections. These range from changes to online slot mechanics to restrictions on certain game features to enhanced requirements for customer risk assessments.

The updates ensure that no matter the success of a gambling platform and the number of players it brings in, certain safeguards are in place to ensure players are better protected against issues that could hurt them. Fraud, gambling addiction and responsible gambling are the main focus. It is not about bringing in more players for the UKGC, but ensuring those already there have better protection.

The Commission’s work reflects a broader regulatory trend where businesses are increasingly not just judged on their success, but also on the outcomes experienced by their customers.

Marketers often measure campaign performance through conversion rates, engagement levels or customer lifetime value. Regulators, on the other hand, may require businesses to take an approach that puts more value on customer welfare.

Different sectors operate under different regulators, so it will not be the same for all businesses. But the online gambling industry and its regulation demonstrate how customer outcomes could increasingly become a regulatory focus.

Gambling Regulation

Transparency and Communication Standards

Customer interactions and marketing communications remain an important part of the connection between businesses and consumers. However, regulators across a growing number of industries are tightening up the rules on how marketers communicate their messages when advertising. The key point is whether marketing messages serve the consumer’s best interests in order to influence legitimate decision-making.

For example, in online gambling, regulators are increasingly shifting toward a clearer and more transparent approach to communication. Website banners, T&Cs, app and SMS notifications and/or email marketing that could create confusion, mislead or place undue pressure on consumers are regulated.

Similar transparency rules apply across multiple industries. Gaining new customers or retaining existing ones is no longer purely about how many customers engage with emails or social media posts; instead, regulators are stepping in to ensure companies communicate messages in the best interests of their customers. A more regulatory-approved approach is to send fewer communications that are timely and relevant.

Personalisation – A Step Too Far?

Customer data has long been used by companies to analyse behaviour, spending patterns and product preferences. However, there is debate among many regulators as to where a line should be drawn between helpful personalisation and practices that could undermine consumer freedom.

The question is not about whether personalisation should be used, but rather about how it is used. Will it help customers find products and services that suit their needs or push them towards alternatives that may not be in their best interests?

For marketers going forward, the aim should be to use personalisation to improve services rather than to exploit a consumer’s weak areas. It’s common practice to remind customers of a saved cart at checkout, but using behavioural data to push a product could be a step too far.

The Key Takeaway

Online casinos might not be the ideal case subject when it comes to player retention, especially as gambling is a risky hobby with the potential to create serious problems. The industry is under increasingly tough scrutiny from the UKGC because of it.

Therefore, marketers might be best advised to ignore customer retention strategies used in the gambling industry and instead learn from regulations that increasingly value consumer choices and outcomes.