{"id":513,"date":"2020-06-29T18:42:11","date_gmt":"2020-06-29T18:42:11","guid":{"rendered":"https:\/\/www.raig.org\/?page_id=513"},"modified":"2020-06-29T18:42:11","modified_gmt":"2020-06-29T18:42:11","slug":"raig-qa","status":"publish","type":"page","link":"https:\/\/www.raig.org\/about-us\/raig-qa\/","title":{"rendered":"RAiG Q&A"},"content":{"rendered":"\n

What is an affiliate?<\/strong><\/p>\n\n\n\n

Unfortunately, there is no universally agreed definition of\nwhat constitutes affiliate activity.<\/p>\n\n\n\n

The ASA currently defines affiliate marketing as:<\/p>\n\n\n\n

\u2018<\/strong>Affiliate marketing is a type of performance-based\nmarketing where an affiliate is rewarded by a business for each new\ncustomer attracted by their      marketing\nefforts, usually with a pre-agreed percentage of each       sale. Affiliates typically place ads and links online\nthat direct consumers to the website of a company.\u2019<\/em><\/p>\n\n\n\n

RAiG considers this definition to be too narrow. In mature\nmarkets such as the UK, affiliates provide a much wider range of services than\npurely lead generation and helping to acquire \u2018new\u2019 customers. This could, for\ninstance, involve efforts to help retain existing customers and generally\npromote brands more.<\/p>\n\n\n\n

How big is the\ngambling affiliate market?<\/strong><\/p>\n\n\n\n

In a report into the Gambling\nCommission (February 2020), the National Audit Office cited a figure of \u00a3301m\nfor 2017, although they do not provide a definition to show exactly what\naffiliate activity this covers.  The\nreport also showed that the market had grown less than 3% per annum since 2014.<\/p>\n\n\n\n

In order to give an idea of how\nthis relates to the wider gambling market, \nit is widely accepted that affiliates deliver between 30%-50% of\nacquisition to operators in the UK and collectively, members of RAiG reach\nmillions of unique customers each month via their websites and products. <\/p>\n\n\n\n

Why do operators use\naffiliates?<\/strong><\/p>\n\n\n\n

Operators use a wide range of\nadvertising and marketing routes to promote their products and services. Within\nthat, the affiliate sector provides additional marketing techniques that\noperators do not use themselves to reach a broader target audience. <\/p>\n\n\n\n

This form of advertising is\ncommonplace in many industries such as retail, travel, hospitality, insurance\nand finance. <\/p>\n\n\n\n

Why do consumers use\naffiliates?<\/strong><\/p>\n\n\n\n

Similar to other industries, affiliates provide a valuable\nservice to consumers. <\/p>\n\n\n\n

Primarily because they provide added value. This value can\ntake many forms such as the ability to compare prices and products; interesting\nand engaging content (for example, about sporting events); and the provision of\nspecial offers.<\/p>\n\n\n\n

Should affiliates be\nregulated?<\/strong><\/p>\n\n\n\n

Affiliate activity is currently\nsubject to regulation by the Advertising Standards Authority (ASA). However,\nthere have recently been calls for affiliates to be subject to an additional\nlicensing regime to be operated by the Gambling Commission.<\/p>\n\n\n\n

RAiG believes it is important\nthat a proper assessment of the potential benefits is undertaken before a\ndecision is reached on this important issue. In the final instance, this would\nbe for the regulator and government to address, but RAiG stands ready to\ncooperate fully in that process.<\/p>\n\n\n\n

In the meantime, RAiG has\nconcluded that licensing by the Gambling Commission does, in principle, provide\nthe best way to raise standards across the whole gambling affiliate sector and\nimprove safeguards for consumers. <\/p>\n\n\n\n

Are current\nregulations sufficient?<\/strong><\/p>\n\n\n\n

The current regulations are\nalready wide ranging, and the ASA keep them under active review. Operator\ninterpretation of regulations can differ markedly and there is no overarching,\ncohesive set off compliance standards communicated to affiliates.<\/p>\n\n\n\n

Compliance is reportedly high,\nbut the diversity of the affiliate sector and a definition of affiliate\nactivity which may not be broad enough, leads RAiG to believe that further\naction is necessary and therefore fully support the rollout of a licensing\nframework detailing what is and is not permitted, particularly regarding\ndigital marketing and social media.<\/p>\n\n\n\n

Why aren\u2019t affiliates\nlicensed in the same way as operators?<\/strong><\/p>\n\n\n\n

The Gambling Act 2005 requires\nall operators who provide gambling products to British consumers to be licensed\nby the Gambling Commission. It does not contain that provision for those who\nmarket or promote such licensed gambling services.<\/p>\n\n\n\n

The Gambling Commission has\nstated that it will hold its licensees responsible for the activities of the\naffiliates that they contract with. In their opinion it is argued that this\nnegates the need for direct licensing of affiliates. However, we have seen in\nmany regulated markets (US\/Romania) that a licensing system for affiliates can\nhave significant benefits such as preventing the marketing of unlicensed operators\nand the completion of formal KYC and due diligence checks of affiliates. <\/p>\n\n\n\n

What is to stop affiliates in the UK working with black-market\noperators?<\/strong><\/p>\n\n\n\n

Under the Gambling Act 2005 this\nwould constitute a criminal offence which would be prosecutable by the Gambling\nCommission.<\/p>\n\n\n\n

A licensing regime for affiliates\nwould further ensure that as a condition of said license, all black-market\noperators would have to be removed from affiliate sites in order to work with\nlicensed operators. <\/p>\n\n\n\n

What can be done to\nminimise the amount of marketing seen by the young and vulnerable?<\/strong><\/p>\n\n\n\n

Both operators and affiliates have\ndata that can help to minimise the amount of marketing seen by the young and\nvulnerable. ASA regulations and voluntary codes already exist which have been\ndesigned to achieve that.<\/p>\n\n\n\n

RAiG\u2019s position is that these\nmeasures can still be improved upon and in collaboration with other\nstakeholders is exploring what practical improvements can and should be made.<\/p>\n\n\n\n

Do affiliates age verify their customers?<\/strong><\/p>\n\n\n\n

No. Unlike online operators,\naffiliates do not require customers to open accounts with them and therefore do\nnot hold the level of personal information required to undertake reliable age\nverification checks. <\/p>\n\n\n\n

In order to assist with limiting\nthe opening of underage accounts, there are regulations in place to prevent\naffiliates from targeting under 18s and they are subject to regulations which\nprevent them from doing so.<\/p>\n\n\n\n

Why is RAiG\u2019s focus\nsolely on the UK?<\/strong><\/p>\n\n\n\n

Given the complexity of marketing rules and regulations, and\nthe many differences between jurisdictions it was decided to focus on the UK as\nthe largest licensed gambling market.  <\/p>\n\n\n\n

Many of the actions taken by RAiG in the field of good\npractice and safer gambling should also be applicable in other countries, but\nRAiG\u2019s founders and new members remain very mindful that the majority of their\nmarketing is focussed on the UK. <\/p>\n\n\n\n

How does RAiG ensure\nits members are socially responsible?<\/strong><\/p>\n\n\n\n

As a condition of membership all RAiG members must\nsuccessfully pass a third- party social responsibility audit.  This audit is undertaken annually.<\/p>\n\n\n\n

RAiG has published a paper with details about the audit\nprocess. It can be found at https:\/\/www.raig.org\/news-press\/press-pr-page\/responsible-affiliates-in-gambling-introduces-social-responsibility-audit\/<\/a><\/p>\n\n\n\n

Are affiliates aware\nof the harm that gambling can cause to a minority of people?<\/strong><\/p>\n\n\n\n

This concern, as well as the need for affiliates to play a\nfull part in the wider British safer gambling initiative is exactly why RAiG\nwas established. <\/p>\n\n\n\n

What more can\naffiliates do to safeguard their customers?<\/strong><\/p>\n\n\n\n

RAiG will continue to assess ways\nin which this can be done. For example, areas under consideration at the moment\nare improving the provision of useful information on affiliate sites;\nspecialist training for affiliate staff; and options to minimise marketing to\nthe young and vulnerable.<\/p>\n\n\n\n

What other\norganisations does RAiG engage with to identify new safeguards for affiliate\ncustomers?<\/strong><\/p>\n\n\n\n

RAiG engages with a range of reputable organisations, such\nas YGAM, GamCare and Betknowmore UK.<\/p>\n\n\n\n

Does RAiG engage with\nregulators?<\/strong><\/p>\n\n\n\n

Yes. It is important to work in\ncooperation with regulators and other stakeholders so that there can be a\nmutual understanding of the issues. This will provide the best platform to\nidentify and implement proportionate and effective solutions to the challenges\nthat emerge as a safer gambling environment is shaped in the UK. <\/p>\n\n\n\n

How can RAiG help to\nimprove the sector\u2019s reputation?<\/strong><\/p>\n\n\n\n

One of RAiG\u2019s objectives is to\nput a face to the UK gambling affiliate sector so that it has a voice in the\ndecisions which will affect it. By focussing solely on safer gambling rather\nthan the range of other issues that impact on affiliate marketing it clearly\nsignals what its priorities are.<\/p>\n\n\n\n

Like any other organisation it\nwill be judged on its actions, but by delivering on those and hopefully\nencouraging like-minded non-members to do the same, RAiG will help to improve\nthe sector\u2019s reputation.  <\/p>\n\n\n\n

Alongside that, it has a role to\nplay in educating opinion formers about the realities of the sector and the\nsteps that RAiG is taking.  <\/p>\n\n\n\n

What are RAiG\u2019s\nmembership subscription fees?<\/strong><\/p>\n\n\n\n

They are \u00a320,000 for full membership and \u00a35,000 for\nassociate membership. There is a commitment that these will be reviewed on an\nannual basis.<\/p>\n\n\n\n

Aren\u2019t the fees too\nhigh for most affiliates?<\/strong><\/p>\n\n\n\n

Whilst RAiG is committed to\nraising standards across the affiliate industry, members are mindful that these\nfees are likely to be prohibitive for most affiliates and will be seeking\nopportunities to share information and services with the wider affiliate sector\nfor no, or minimal charge.<\/p>\n\n\n\n

This would include, for instance, providing complementary\nplaces for non-members at any events that it might organise as well as freely\nsharing codes or content that it develops in addition to working on behalf of\nall affiliates to engage operators and regulators.<\/p>\n\n\n\n

As above, RAiG welcomes outreach from any non-member for\nadvice or guidance. <\/p>\n","protected":false},"excerpt":{"rendered":"

What is an affiliate? Unfortunately, there is no universally agreed definition of what constitutes affiliate activity. The ASA currently defines […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":198,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"https:\/\/www.raig.org\/wp-json\/wp\/v2\/pages\/513"}],"collection":[{"href":"https:\/\/www.raig.org\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.raig.org\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.raig.org\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.raig.org\/wp-json\/wp\/v2\/comments?post=513"}],"version-history":[{"count":0,"href":"https:\/\/www.raig.org\/wp-json\/wp\/v2\/pages\/513\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/www.raig.org\/wp-json\/wp\/v2\/pages\/198"}],"wp:attachment":[{"href":"https:\/\/www.raig.org\/wp-json\/wp\/v2\/media?parent=513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}