PlayOJO co-founder Ohad Narkis on making no-wagering requirements work

The CMA made some bold pronouncements earlier this week in an update on its investigation into the gambling industry’s treatment of consumers.

The focus of the investigation, launched back in October, has been on terms and conditions of bonuses, and the CMA adopted a hard-line stance on Wednesday that could have major implications for the sector.

In particular, the CMA said it expects operators to end “gaming promotions that include a restriction on the withdrawal of deposit winnings.” These type of restrictions are “substantively unfair” according to the CMA.

The problem of course is that these type of conditions are common across the industry and central to most acquisition strategies.

However, a small number of firms, are already experimenting with no wagering requirement bonus, including PLayOJO, whose flagship sign-up offer gives customers up to 50 free spins with all winnings paid in cash and immediately withdrawable.

Below, PlayOJO co-founder, Ohad Narkis, tells EGR how players have responded to the approach, and how operators can adapt to the changing regulatory environment.

EGR Intel: The biggest concern for any executive when considering no-wagering requirements is that many players will just sing up, take the money and run. Has this been the case with PlayOJO?

Ohad Narkis (ON): We of course get players coming in and taking a little bit of money from free spins. We knew it would happen, and we consider that part of our bonusing costs, acquisition costs, CRM costs and its one we are willing to absorb.

That said we are also still figuring out ways to mitigate that. One thing we do is promote the concept of fairness. Our brand messaging is heavily focused on fairness, and we hope that in return customers will also play fair. The other advantage is that players who do come to our site seem to convert very well. And we also see this from player feedback on review sites, on Facebook and on chat that they appreciate the no-bullshit approach we have.”

EGR Intel: Have players on the whole been receptive to no-wagering bonuses?

ON: In general players have responded well to our fair ‘what you see is what you get’ approach. However this took time and we didn’t anticipate the level of effort required to educate players and remove existing perceptions. They’ve been programmed to expect a certain type of treatment from casinos. We have to work very hard on building this trust in the industry. It is a lengthy, pronounced and very expensive effort.

EGR Intel: Do you expect to see the rest of the industry follow you now the CMA and the Gambling Commission is getting somewhat firmer on this issue?

ON: In 2018, unless the CMA or the Commission completely abolish wagering requirement, I don’t think much will change. What could drive change is the financial incentives, in the form of the bonus tax. Operators simply won’t be able to be continue running their business the way they have.

In addition to pressure from the CMA or the commission, players should more actively demand to be treated well and this is turn will make operators listen and act. This is the future of the industry, because players are fed up of being treated badly. They play for fun and turning over a bonus 200 times isn’t fun, it creates a lot of tension.

EGR Intel: Are there any other hidden benefits from your approach?

ON: There is no doubt in my mind this saves us money, and while I can’t put a number against it we are seeing a lower volume of customer support queries coming in from the active base we have.

It saves time and allows us to deal with other queries that come in and when we do have conversations with players, we can spend the time on guiding them through the casino and get the best experience we can offer them.