Maintain VIP Program Compliance with the Right Bonus Module

Bonuses and VIP programs are some of the most effective tools online casino operators can use to welcome new players and build a long-term relationship with them. But in some markets, the era of freewheeling bonuses is coming to an end and operators need to be more flexible than ever in their acquisition and retention strategies.

New regulations and practices in igaming

Due to recent changes dictated by regulators, operators are forced to look for new solutions to reward VIP players.

Authorities in some jurisdictions have tightened regulations governing marketing strategies to combat problem gambling. In some countries, this has included limits on bonuses and VIP programs.

In January 2019, Swedish authorities approved a law setting a cap of 100 SEK (€9.50) on bonuses. A month later, a bonus limit of 1000 DKK (€134) was introduced in Denmark. As a result, operators were forced to change their player reward strategy. Some brands, such as Maria Casino (part of the Kindred group), have started using a simple and transparent reward strategy, offering players 10% cashback for weekly losses.

In a high-profile case in September 2020, the UK Gambling Commission fined betting giant Betway £11.6m (€13.5m) for breaching anti-money laundering requirements. ‘silver. Subsequently, the UKGC introduced new licensing requirements to combat what it saw as irresponsible promotional strategies.

Under the new rules, operators must maintain a database of player professions and sources of income. Regular updates are necessary to ensure player spending remains within acceptable limits.

Early warning safety systems and new incentive strategy

Operators are finding ways to adapt to new requirements.

Some are finding ways to demonstrate to regulators that their platform can create responsible VIP programs, while others are trying to negotiate with lawmakers to prevent new, stricter regulations.

Another option is to gradually change the vector of ad campaigns to encourage smart gaming habits instead of focusing on VIP gamers. And in countries where there are no national registers, operators can cooperate with each other to create a database of problematic and excluded actors; this way, users will not be able to circumvent the restrictions by simply switching platforms.

But a winning strategy is nothing without the technical skills to carry it out.

Slotegrator, a software developer and aggregator for the gaming industry, has launched a new online casino platform with a range of updates and new features, including a bonus module. This not only allows you to incentivize players through loyalty programs and promotions, but also to do so while meeting (sometimes fluid) regulatory requirements. The developer can adapt the solution to any market. Several technical characteristics of the module stand out:

Early detection systems

The module’s early detection security system allows operators to monitor user behavior. The algorithm tracks and analyzes player behaviors such as deposit frequency and amount and alerts the operator to a potential problem in case of behavior such as jumps in deposit amount or frequency. It also recognizes indicators such as continuation of losses, cancellation of withdrawals, retries of invalid cards and night play. In addition, the system constantly monitors the funds available to combat money laundering.

Alternative reward strategy

If limitations take away the shine from your bonuses, the module allows for an alternative customer reward strategy, such as cashback for losses. This solution is useful – and perhaps even necessary – in jurisdictions where bonuses and VIP programs are severely restricted by regulation.

New VIP Rules

The higher a player goes up the VIP ladder, the more likely they are to like betting big. The bonus module allows operators to set up betting limits and bonus betting rules for VIP players like bet and cashout limits to ensure it doesn’t break the bank when they hit their jackpot.

Updating their player reward strategies with Slotegrator’s bonus module allows operators to provide VIPs with the deals they seek while remaining compliant with regulator requirements, thereby strengthening operators’ relationships with players and authorities.