Is Non GamStop Business Model More Profitable for Online Casinos?

10 October 2024

Responsibility and safe gambling are among the key pillars of the iGaming sector in 2024, and compliance with the industry standards is essential for both players and service providers. Reliable online casinos heavily invest in users’ well-being by providing them with a safe gaming environment and a decent level of consumer protection. GamStop is among the mechanisms for avoiding gambling-related problems and controlling risk enthusiasts. This model was implemented in the UK market and has already brought numerous benefits. What are the pros and cons of gaming operators avoiding self-exclusion, and how will this system affect the industry in the following years?

GamStop Mechanism: How It Works and Self-Exclusion’s Efficiency

The UK government is concerned about regulating the iGaming sector and implementing more control over the industry. GamStop is the main measure used to restrict access for problem players and bettors, which offers them all the necessary tools to cope with the disorder. The nationwide self-exclusion program is integrated into all gambling sites and sportsbooks in the jurisdiction, significantly enhancing user protection.

At the same time, gaming sites that do not work with GamStop are also widespread in the country: they are licensed by offshore regulators but don’t require players to be self-excluded in case of excessive activities. Many users opt for platforms outside the UK due to higher flexibility and better conditions when it comes to game collections, bonuses, and payment limitations.

While many want to cancel GamStop, approximately 400,000 gamblers have already joined it. Up to 80% of the program’s users reported improved conditions and reduced cravings for this risky entertainment. Besides the ban on gambling for a period from six months to five years, the tool offers high-quality support for those struggling with self-control in online casinos. However, the software blocks customers automatically if it notices excessive gaming or betting, and cancelling restrictions is impossible. Due to this, gambling enthusiasts choose to play without limitations. In the end, avoiding self-exclusion can appear beneficial for operators and help them grow their revenue in the long run.

Advantages of the Non-GamStop Business Model

Many think that platforms outside GamStop are unreliable, but this is far from the case. These online casinos operate under the control of offshore authorities like Curaçao eGaming and MGA, which have high standards and do everything possible to increase consumer safety. At the same time, users don’t risk being banned from their favourite websites. Unsurprisingly, this model is beneficial for service providers, and here’s why.

Customer Acquisition Is Higher

Casino fans are usually not happy with limitations and tend to choose platforms with minimum requirements. Non-GamStop sites offer gambling without deposit limits and other restrictions, so more customers are likely to join them. Operators can grow their profits, respectively, and attract even more newcomers in the future.

Enhanced Consumer Retention

Customers are likely to return if they enjoy the game selection, bonuses, and overall conditions. Non-GamStop casinos boast higher user retention rates since they don’t impose significant player limitations but offer plenty of exciting opportunities. Users can invest sums they choose without restrictions and enjoy a handful of generous promotions. Of course, passionate players are inspired by the chance to continue gambling in the future, knowing they won’t be blocked by self-exclusion tools.

Higher Profitability

As mentioned, non-GamStop sites attract more customers, eventually growing the gambling company’s revenue. On the contrary, implementing self-exclusion into their activities is costly for iGaming operators and can significantly affect their future profits. The UK GamStop system is imperfect: players still find ways to get around the ban, while online casinos face numerous restrictions that impact their operations. The UKGC aims to make the in-country gambling sector more controlled, but significant challenges are present. On the other hand, non-GamStop platforms legally provide services to players and guarantee high data protection.

Responsible Gambling Measures in Non-GamStop Casinos

Many consider the absence of self-exclusion a reason to avoid online casinos, fearing it can appear unreliable. However, platforms outside GamStop controlled by overseas authorities must also comply with globally accepted gambling standards. Therefore, gaming companies often support responsible gambling practices such as instant access to support groups and helplines to prevent compulsive behaviours among casino enthusiasts.

Many operators also use AI mechanisms to analyse user activities and inform them about the importance of taking timely breaks. Even though this technology doesn’t imply mandatory self-exclusion, customers can learn the basics of bankroll management and explore how to remain responsible in gambling.

The Final Word

Integrating self-exclusion is a costly and complicated process that doesn’t always benefit the gambling company. The non-GamStop model of business is considered more profitable for casinos since users tend to choose platforms without self-exclusion. Operators licensed outside the UK jurisdiction usually boast higher user retention and customer acquisition, which allows them to grow their revenue in the long run and boost brand recognition in the international market.

 

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