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Bonuses won't save margins: Dirk Camilleri on sustainable growth in a high-cost landscape

Dirk Camilleri, iGP CPO, discusses shifting growth during the commercial squeeze.

igp2
igp2

How can operators drive greater retention? Here is a slightly uncomfortable question – if larger bonuses truly created loyalty, why are operators still fighting churn at the same intensity year after year?

You approve another larger acquisition budget because the previous one already felt stretched. It’s exhausting to sit through another compliance review, knowing the process will only get more complex next quarter. And it’s disappointing to launch a carefully planned campaign, see deposits climb and feel that brief sense of relief, only to watch engagement taper off weeks later.

The commercial squeeze

The environment is tightening from every direction. Advertising windows are narrower. Sponsorship bans are expanding. Social channels are under heavier scrutiny. Bonus bans and wagering caps limit how aggressively you can promote. Cooling off periods weaken re-engagement.

Responsible gambling frameworks are also becoming more robust. Affordability checks and loss limits are now embedded into the player journey, while self-exclusion schemes reshape the active audience operators can engage. Meanwhile, licence costs are rising, tax pressure is increasing, more jurisdictions are moving toward full regulation and data privacy rules are making targeting less precise.

Growth is shifting

As a result, this makes acquisitions more challenging. There are fewer channels to rely on, with more brands competing for the same attention. Every new player becomes more expensive with less predictable returns. That makes the focus more inward. The players already on your platform are more important than ever. It is costly to replace churned users. Under tighter restrictions, reactivating them will be more difficult.

Retention should not be something you optimise only after growth. Yet the tools operators have historically relied on bonuses and promotions are the very ones facing tighter limitation. The database may be your most defensible asset, but too many platforms lack the architecture to turn that value into long term growth. You are squeezed from both ends. The players who rushed in for the offer are now waiting for the next one, or they are gone.

At that point, growth stops feeling like momentum and starts feeling like damage control. That is what happens when retention depends on incentives without a structure strong enough to support them.

Where retention breaks down

You have layered retention tools over time. A loyalty programme was added, then a bonus engine, followed by jackpots, gamification and personalisation. The stack grew with each initiative. From a player’s perspective, the journey can feel disconnected.

Points are earned in one place, bonuses redeemed in another, jackpots follow separate rules and personalised offers do not always link clearly to progression. Each feature works individually, but together they do not really form a consistent narrative.

Behind the scenes, systems operate separately and reporting measures activity more easily than long term value. What 
is missing here is a structured framework that connects incentives to progression and lifetime value in a consistent way. Build the foundation before you run the campaign

You should answer these fundamental questions. How is value earned? How is it distributed? How does progression work? How does the structure protect margin while encouraging repeat engagement?

A structured loyalty system defines how player activity converts into value using transparent, deterministic rules. Points can be earned through betting, deposits or specific behaviours. Multipliers can be adjusted by game type, provider, category or currency. Loyalty can remain simple or evolve into tiered progression with clear recognition and defined benefits. This allows operators to turn activity across their platform into structured value, effectively utilising the player database they already have.

When this logic is embedded directly into the core platform rather than layered on top, it connects naturally to wallet, gameplay and reporting. Incentives are evaluated alongside performance data. Contribution levels are visible. The commercial impact of rewards can be measured with greater precision. It also allows loyalty, bonuses, jackpots and gamification to operate within the same framework rather than. Loyalty must be more than just a series of campaigns.

Bringing the Player Journey Together

Fragmentation is the problem. A bonus is more effective when it supports progression rather than acting as a one-off hook. A jackpot contributes to retention when it fits within a defined contribution strategy. Gamification adds depth when it reinforces a broader framework. Personalisation becomes meaningful when it reflects real behaviour instead of assumptions.

If everything is not aligned around a holistic player journey, adding more mechanics alone will not change performance in the long run. Platforms are beginning to address this challenge by integrating loyalty, bonuses, jackpots, gamification and personalised recommendations into a single operational layer rather than treating them as separate tools.

The technology itself is familiar. The difference lies in treating the player journey as one connected system rather than a collection of separate tactics. 

Revenue quality over revenue noise

Strong deposits do not automatically mean strong GGR. Incentives can inflate activity while quietly weakening revenue quality. Without clear contribution rules and structured reward logic, promotions may boost turnover but compress margin. 

A disciplined loyalty framework brings focus back to sustainable GGR. Operators can assess how incentives affect real revenue. The question shifts from “did this campaign drive deposits?” to “did it strengthen long-term GGR and player value?”

Where loyalty Is heading

We are moving from acquisition-led growth toward lifetime value optimisation. That transition requires a more mature understanding of retention. Loyalty cannot rely on louder campaigns or increasingly aggressive offers. It must be aligned with platform architecture, data visibility and commercial intent.

Some platforms are already embedding loyalty and promotion capabilities directly into the platform core so retention can be designed structurally and optimised continuously.

At iGP, this philosophy is reflected in the development of Vibe, a platform level loyalty and promotion engine designed to bring these mechanics together so operators can better activate and monetise the value already present in their player databases. Structure may not be glamorous. It does not produce dramatic headlines, but it determines whether engagement compounds over time or fades after the next incentive cycle.

Retention is unlikely to become easier any time soon. Those who prioritise structure and cohesion over constant promotional noise will be the ones that build lasting advantage.