Online Gambling Sector to Implement New Financial Assessments
Online gamblers who exceed certain spending limits will soon be subject to new financial risk assessments, as announced by the industry's regulatory body. The Gambling Commission has stipulated that individuals spending over £1,000 within a 24-hour period, or more than £3,000 over a rolling 90-day period, will undergo these evaluations. Lower thresholds will apply to individuals under the age of 25.
These assessments will draw upon data from credit reference agencies. However, the Commission has clarified that these are distinct from traditional "affordability checks." Despite this, the Betting and Gaming Council, representing gambling operators, has voiced its dissatisfaction with the new measures, expressing concerns that they could potentially steer customers towards unregulated black markets.
Phased Implementation and Rationale
A specific timeline for the full implementation of these changes has not yet been provided, with the Commission indicating a "very careful, staged way" approach. The rationale behind these checks stems from evidence suggesting that some high-spending customers experience financial distress without being adequately identified or assisted by gambling companies.
The initial phase will target individuals over 25 who gamble more than £5,000 within a 24-hour period, and will first be applied by the largest gambling operators. This initial stage is projected to affect less than 0.5% of customers and is expected to roll out this summer, following consultations with industry stakeholders. Subsequently, the thresholds will be reduced to £1,000 in a 24-hour window, and £750 for those under 25.
A 2023 government white paper on gambling had previously recommended enhanced checks for customers experiencing significant losses. Data presented by the Commission on Tuesday indicated that high-spending gamblers are considerably more prone to having debt management plans (two to four times more likely) and defaults in the past year (two to five times more likely) compared to the general population.
Commission's Stance and Industry Concerns
Sarah Gardner, acting chief executive of the Gambling Commission, stated that the vast majority of customers would not require such an assessment. For those who do, she assured that the process would be "frictionless, document-free," conducted by credit reference agencies, and would not negatively impact credit scores. She emphasized that this strategy aims to provide support to high-spending customers in financial difficulty while minimizing inconvenience for others.
Gardner reiterated that these assessments are not "affordability checks," which she acknowledged as being "deeply unpopular" among gamblers. She also addressed concerns from stakeholders about the potential for increased regulation to inadvertently push problem gamblers towards illicit markets.
The Gambling Survey for Great Britain in 2024 revealed that 9.3% of online gamblers (excluding lottery participants) scored eight or higher on the Problem Gambling Severity Index. A score of eight or more suggests a potential loss of control over gambling behavior and adverse consequences. The Commission highlighted ongoing enforcement failures, citing a recent case where a customer deposited £25,000 in 25 days before any intervention occurred.
Baroness Twycross, the Gambling Minister, stressed the importance of these assessments working effectively for "consumers, gambling operators and the wider ecosystem." However, the Betting and Gaming Council (BGC) expressed "deep disappointment and frustration," arguing that the Commission is proceeding with these risk assessments despite significant concerns raised by the BGC, operators, racing industry, parliamentarians, and customers over the past 18 months.
Grainne Hurst, chief executive of the BGC, commented: "The central issues around reliability, consumer impact and the practical operation of these checks remain unresolved." She further criticized the Commission for not providing sufficient "accurate, reliable or consistent" data to substantiate the checks. "We support evidence-led, proportionate regulation that protects vulnerable people while allowing the 22.5 million adults in Britain who bet each month to do so safely. But until the Commission can demonstrate these checks are accurate, consistent and genuinely frictionless, our fundamental concerns remain, including the risk of driving customers towards the growing illegal gambling market."
The British Horseracing Authority also criticized the announcement, suggesting the changes would subject racing bettors to "unwarranted levels of intrusion."
Source: Online gamblers betting more than £1,000 to face new checks