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You can find the current article at its original source at https://www.theguardian.com/society/2017/sep/04/pressure-grows-gambling-industry-over-dubious-tipsters-affiliation
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| Pressure grows on gambling industry to stop tipsters profiting from losses | Pressure grows on gambling industry to stop tipsters profiting from losses |
| (1 day later) | |
| Sky Bet closes gaming affiliation scheme after Guardian revealed how some tipsters were earning 30% commission on punters’ losses | |
| Mattha Busby | |
| Mon 4 Sep 2017 15.21 BST | |
| Last modified on Mon 27 Nov 2017 17.34 GMT | |
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| Pressure is mounting on the gambling industry to end gaming affiliate schemes after Sky Bet closed its programme, citing changing regulatory requirements. | Pressure is mounting on the gambling industry to end gaming affiliate schemes after Sky Bet closed its programme, citing changing regulatory requirements. |
| The news comes after the Guardian revealed how dubious tipsters were earning 30% commission on the losses of punters who signed up through affiliate links to bookmakers. | The news comes after the Guardian revealed how dubious tipsters were earning 30% commission on the losses of punters who signed up through affiliate links to bookmakers. |
| According to current and former tipsters and industry experts, some tipsters profit by deliberately recommending long-shot bets that are unlikely to win to their followers on social media, who can number in the hundreds of thousands. | According to current and former tipsters and industry experts, some tipsters profit by deliberately recommending long-shot bets that are unlikely to win to their followers on social media, who can number in the hundreds of thousands. |
| In a statement that suggested Sky Bet was anticipating new rules in the currently unregulated sector, the company said: “The regulatory landscape in which the industry operates is developing and maturing and operators are experiencing increased obligations regarding their regulatory responsibilities and level of compliance. | In a statement that suggested Sky Bet was anticipating new rules in the currently unregulated sector, the company said: “The regulatory landscape in which the industry operates is developing and maturing and operators are experiencing increased obligations regarding their regulatory responsibilities and level of compliance. |
| “In order to operate in a compliant manner, we feel that operating the [affiliate] programme is no longer viable and that managing the output of affiliates presents a significant risk to our business from a regulatory perspective.” | “In order to operate in a compliant manner, we feel that operating the [affiliate] programme is no longer viable and that managing the output of affiliates presents a significant risk to our business from a regulatory perspective.” |
| Charities and pressure groups welcomed the move and called for others to sever their ties with the so-called tipsters. | Charities and pressure groups welcomed the move and called for others to sever their ties with the so-called tipsters. |
| A spokesperson for the Campaign for Fairer Gambling said: “Affiliate sites that masquerade as tipsters exist because operators constantly need new customers, as a huge proportion of their existing player base get into financial difficulty as a result of gambling-related harm. So closing down affiliate sites is a necessary step towards a more sustainable sector. If they are serious about preventing harm then other operators will follow suit.” | A spokesperson for the Campaign for Fairer Gambling said: “Affiliate sites that masquerade as tipsters exist because operators constantly need new customers, as a huge proportion of their existing player base get into financial difficulty as a result of gambling-related harm. So closing down affiliate sites is a necessary step towards a more sustainable sector. If they are serious about preventing harm then other operators will follow suit.” |
| Affiliates have become one of the main ways for online casinos and bookmakers to gain new customers after the cost of conventional pay-per-click advertising rose sharply in recent years. | Affiliates have become one of the main ways for online casinos and bookmakers to gain new customers after the cost of conventional pay-per-click advertising rose sharply in recent years. |
| While some conduct their business legitimately, others are alleged to deliberately mislead those who have come to trust them after they have built a rapport by showing evidence of occasional wins and by having an approachable tone. | While some conduct their business legitimately, others are alleged to deliberately mislead those who have come to trust them after they have built a rapport by showing evidence of occasional wins and by having an approachable tone. |
| To access the operator’s tips, followers must sign up with the particular bookmaker or casino to which the vendor is affiliated. They often advertise free bets to lure in new users. However, users often have to make up to 35 bets before any winnings can be withdrawn. | To access the operator’s tips, followers must sign up with the particular bookmaker or casino to which the vendor is affiliated. They often advertise free bets to lure in new users. However, users often have to make up to 35 bets before any winnings can be withdrawn. |
| Due to the vast amounts that some dubious tipsters earn from the losses of those who signed up to an online bookmaker or casino with their link, they can afford to make a loss on their own bets. | Due to the vast amounts that some dubious tipsters earn from the losses of those who signed up to an online bookmaker or casino with their link, they can afford to make a loss on their own bets. |
| While Sky’s decision to sever links with affiliates is a milestone, it is not the first operator to address the problem with links to unscrupulous third parties. | While Sky’s decision to sever links with affiliates is a milestone, it is not the first operator to address the problem with links to unscrupulous third parties. |
| Ladbrokes recently pledged to adopt much stricter rules with their affiliates and to undergo greater vetting to “learn any lessons” from ongoing engagement over unfair Ts&Cs. | Ladbrokes recently pledged to adopt much stricter rules with their affiliates and to undergo greater vetting to “learn any lessons” from ongoing engagement over unfair Ts&Cs. |
| The Ladbrokes chief executive, Jim Mullen, told eGaming Review: “We’re bringing our affiliates very much closer to our own group policy before they can represent us and that’s one of the improvements that you’ll see. | The Ladbrokes chief executive, Jim Mullen, told eGaming Review: “We’re bringing our affiliates very much closer to our own group policy before they can represent us and that’s one of the improvements that you’ll see. |
| “While we have always sought to keep competitive, we never sought to step over the line and we are clear that we will learn any lessons.” | “While we have always sought to keep competitive, we never sought to step over the line and we are clear that we will learn any lessons.” |
| Carolyn Harris, the Labour MP for Swansea East who has campaigned on gambling reform, predicted that greater scrutiny would be placed on the affiliate networks used by the gambling industry and claimed Sky was acting now to avoid being caught up in litigation later on when the full extent of these practices are revealed. | Carolyn Harris, the Labour MP for Swansea East who has campaigned on gambling reform, predicted that greater scrutiny would be placed on the affiliate networks used by the gambling industry and claimed Sky was acting now to avoid being caught up in litigation later on when the full extent of these practices are revealed. |
| “The cynic in me says they’re finally waking up and realising these practices are immoral and rather than face the consequences of their involvement in this dreadful industry, they’re running scared,” she said. | “The cynic in me says they’re finally waking up and realising these practices are immoral and rather than face the consequences of their involvement in this dreadful industry, they’re running scared,” she said. |
| A spokesperson for William Hill said: “We continually monitor our relationship with our affiliates and update our terms and conditions in line with regulatory changes.” | A spokesperson for William Hill said: “We continually monitor our relationship with our affiliates and update our terms and conditions in line with regulatory changes.” |
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