Deposit bonuses are a crucial marketing tool for gambling operators across the planet but gambling regulators in Denmark are banning one category of deposit bonuses entirely. According to a recent report in iGaming Business, the Danish Gambling Authority is implementing a total ban on reactivation bonuses for players who have already put themselves on the excluded list.
This move is in line with the actions of gambling regulators across Europe who have been tightening the reigns on customer acquisition and the marketing practices it entails. One tactic that’s come under particular scrutiny is the practice of luring formerly self-excluded players back into the fold with reactivation bonuses. In addressing this particular issue the Danish Gambling Authority said, “A player’s inactivity by the licensee may not be a selection criterion when awarding promotional offers,” it says. “Bonuses may therefore not be given on the basis of a player’s inactivity.”
Regulators also point out that players who specifically ask for deposit bonuses should be scrutinized to make certain that they’re not problem gamblers looking to score a few extra bucks. Regulators point out, this may be an indication that the player needs to play but cannot afford it”.
Another marketing practice that didn’t pass the sniff test with regulators was letting players set sky-high loss-limits that are out of proportion to their actual income. “Examples have been seen where players have been able to set deposit limits of several hundreds of thousands of kroner without any assessment being made as to whether this was a realistic deposit limit. In such cases, there is no actual deposit limit, as the limit is set at such an illusory high amount that the deposit limit does not have the intended protective and preventive effect,” they said.
The bottom line for gambling operators serving European players is that regulators are tightening the screws and those marketing gimmicks that worked five years ago, may be in need of an overhaul.