What the end of ‘feature drops’ tells us about the future of casino regulation

The recent debate around feature drops shows just how important an agile approach to technical compliance has become, not to mention yet another indicator that the regulatory bar continues to be raised.

Feature drops have become particularly popular among casino players over the past two years, and more suppliers have been building games that include them. Big Time Gaming’s Extra Chilli is just one successful example of the feature.

Here’s how they work. While most slots have a bonus feature that is triggered when, say, a player spins three scatter symbols, some providers have begun to allow players to purchase a feature and trigger it immediately.

These features are what give players the chance to hit big wins such as free spins rounds or high multipliers.

Players have quickly taken to the opportunity to purchase bonus features immediately, rather than wait to hit them through regular play, and many providers have reacted by rolling out the functionality across a host of new content.

End of the party?

The problem is the Gambling Commission has taken less kindly to feature drops and is taking steps to end the practice in the UK.

It seems the UKGC has concerns about the impact of feature drops on the way players interact with slots.

The cost of purchasing tends to be significantly higher than the cost of an ordinary spin, and players can win or lose high sums in a matter of seconds.

In October, the Commission began asking a number of providers to remove feature drop options for UK players. The UKGC appears to have taken the view that feature buying is being used as a way of circumventing maximum base game stakes and encouraging players to gamble greater sums on single outcomes.

For now, at least, the UKGC has not officially announced a policy or ban on feature drops. But as it has made direct requests to several providers to remove them, a blanket ban is likely to arrive sooner rather than later.

Highly regulated jurisdictions

 The concern for operators and providers alike is that Europe’s other highly regulated jurisdictions will follow suit.

As we have already seen in Sweden, the new norm for the online casino space is a need to operate within very tight confines on everything from product to bonusing.

New functionality such as feature drops has been seen by many as a way to better engage with players while remaining compliant. The message from the UKGC, at least on this issue, is that they are watching closely.

Against this backdrop, technical compliance has never been more important.

In highly regulated frameworks, and with the likes of the UKGC not afraid to levy heavy fines for infractions, we are seeing many providers overhaul all processes of technical compliance.

With regulators liable to alter requirements at short notice – as we are seeing with feature drops – it is better to be on the front foot rather than waiting to react.

This means building technical compliance into everything from product development to marketing functionality. Put simply, it needs to be at the core of everything you do as a business.

In competitive, highly-regulated markets where rolling out new content swiftly has become a key battleground, operators will no longer wait around while a provider spends months re-certifying or adapting a game to the requirements of a new jurisdiction.

Instead, games need to be built with technical compliance in mind; process needs to be clear and well-established; tweaking the fundamentals of content should be part and parcel of normal game maintenance.

While today it is feature drops, in the coming months it could be another central component of a content library which comes under scrutiny.

The question we all need to ask is: are we ready to adapt?

Author: Deion Williams, director of technical compliance at Maxima Compliance

Bio: A former technical compliance and information security officer at PlayNGo before joining Maxima in June 2019, Deion is experienced in technical compliance, regulatory compliance, data protection and information security, with a history of working in the gambling & casinos industry.