IGA Insights: Adapting to the UK Gambling Tax Changes
Part 2 - How Leading Operators are Adjusting Their Affiliate Strategies
Following the UK’s Remote Gaming Duty increase from 21% to 40%, operators have been forced to react quickly to the latest industry challenges.
As outlined in Part 1, the immediate impact forecasted tighter margins, slashed budgets, and increased pressure on the efficiency of affiliate channels. Now, we’ve seen what actions are being taken across the industry.
This second part explores how leading operators are adapting their affiliate strategies, where budgets are being reallocated, and how different traffic sources are being impacted.
The Changing Affiliate Channel Mix
PPC: High CPCs, but for how long?
The PPC landscape is predicted to reflect broader market corrections, but not for a couple of months. Operators are pushing for reduced CPAs, while Google’s crackdown on illegal inventory is expected to ease competition. In theory, this combination should drive CPCs down.
However, profitability remains under pressure. Operators are not necessarily shifting toward cheaper keywords, but there is growing expectation that Google adjusts gambling keyword pricing, particularly in the casino sector, to reflect increased taxation.
SEO: High demand and increasing difficulty
SEO continues to be one of the most sought-after affiliate acquisition channels, particularly as operators look for sustainable growth.
However, affiliates are facing increasing challenges. The rise of parasite SEO is dominating search rankings, making it harder for traditional affiliates to compete and consistently generate commissions.
Despite this, operator demand for SEO driven traffic remains strong. Especially for partners that can deliver high quality, intent driven users.
Meta & Social: Volume Over Value
To compensate for declining SEO volume, many operators are leaning more heavily into Meta and other social channels.
While these channels can deliver scale, the traffic is often lower intent. This shifts the burden onto CRM teams, who must work harder to retain and extract value from these users effectively.
As a result, acquisition and retention departments must work closely together in order to see success.
Referring to internal performance marketing channels, George Powell continued:
Adjustments Made by Leading Operators
Across the board, several consistent themes are emerging. Cost control is tightening. Operators are handling this in a variety of different methods. This includes, but is not limited to:
- Reducing RTPs
- Tightening Bonus costs
- Reduced Affiliate Spend
- Affiliate team re-structures
Below we will explore 4 different operators and their unique approaches to adapt in the market. The operator names have been concealed for confidentiality.
BRAND A
Brand A has taken an aggressive approach to cost control and channel reallocation. Affiliate CPAs have been reduced by an average of 30%, alongside a 42% cut to the overall affiliate marketing budget. A significant portion of the original budget has been redirected toward their internal SEO channel, signalling a shift toward more controlled, organic acquisition.
At the same time, the brand has a selective approach to PPC partnerships. They have chosen to work with fewer affiliates, enabling them to allocate a larger share of the overall budget under revised CPA structures.
In addition, Brand A is exploring alternative, untested traffic sources within the UK market, while also adjusting their product strategy by lowering RTPs on welcome bonus slots to better manage margins.
BRAND B
Brand B has opted for stability in its external partnerships, with no immediate changes to affiliate deals or budgets. Instead, the focus has been on internal restructuring within the affiliate team itself.
From a strategic perspective, the brand is leaning into high-volume acquisition through No Deposit Bonuses and Meta driven traffic. This approach is designed to reduce eCPAs while maintaining scale, supported by a strong emphasis on personalised CRM strategies to improve retention of lower-intent users.
BRAND C
Brand C is pursuing a more conservative, sustainability focused model. The emphasis is on low CPAs, with a strong reliance on SEO and retention strategies to deliver faster returns on investment.
Their main focus is personalisation, ensuring that every customer feels cared about. This reflects a clear value over volume approach, prioritising long term profitability and efficiency rather than aggressive acquisition.
BRAND D
Brand D has implemented broad cost-cutting measures across its affiliate operations, as marketing spend has been reduced up to 40%.
These reductions are part of wider operational efficiencies, including team restructures, fewer branded affiliate takeovers, and reduced fixed-fee spending.
Whilst key partners have been protected, some CPAs have also been lowered. In addition to this, adjustments to RTPs on welcome bonus slots to help offset increased tax pressures.
Conclusion
Different operators have taken different approaches based on what they see as value. Whilst some have focused on reducing commission structures, others have taken the hit internally.
Affiliate marketing should no longer be about hitting KPIs, it should be about delivering efficiency, sustainability, and measurable value.
For affiliates, this means adapting to lower deal structures and tighter expectations. For operators, they should expect longer ROI periods. Success will depend on how effectively they balance acquisition and retention in an increasingly constrained environment.
In Part 3 of this series, we will explore the results so far. Looking at the real tax impact and how effective some of these strategies have been.
If you’re looking to optimise your affiliate programme in line with these changes, take a look at our affiliate management services and pricing to see how we help operators drive more efficient growth.
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