UK Gambling Commission to Introduce New Affordability Checks: What You Need to Know

The UK Gambling Commission announces a pilot for affordability checks in online gambling, aimed at preventing financial harm without disrupting the player experience. Here’s everything we’ve gathered on the approaching scheme.

In a significant move to safeguard online gamblers from potential financial harm without compromising their gaming experience, the UK Gambling Commission has launched a pilot for new affordability checks. Director of major policy projects and evaluation, Helen Rhodes, recently detailed this pilot. This marks a cautious step towards the broader implementation of one of the government’s most debated gambling reforms.

Understanding the Pilot Scheme

The Commission’s pilot, starting this week, aims to test the waters for implementing financial risk assessments — a way to identify when high-spending customers may be gambling beyond their means. However, Rhodes emphasises that this is not a “live test”. This ensures participants’ gambling activities will not be directly affected. Instead, the pilot will employ real data to explore how operators could conduct these checks effectively and responsively.

Stage-Wise Rollout of Affordability Checks

The scheme will unfold over six to seven months, engaging the largest online gambling operators to test these checks in three sequential stages. Initially focusing on historical data, the test will eventually incorporate current data to identify customers in significant financial distress, such as those with considerable arrears or missed payments. The objective is to discern the severity of financial difficulties and enable operators to offer tailored support, ranging from marketing adjustments and deposit limits to potentially ending the customer relationship for their protection.

Criteria for Success

The UK Gambling Commission has established four criteria to gauge the pilot’s effectiveness:

• The ability of higher spending accounts to undergo a financial risk assessment via a credit agency.
• The speed at which these assessments can be processed and returned to operators.
• The relevance of credit reference data in evaluating financial risk.
• The potential for integrating these financial risk checks within the overall customer interaction framework.

Looking Ahead at “Light” Affordability Checks

In addition to the pilot, operators will soon initiate “light touch” affordability checks. This is based on publicly available data for customers exceeding £500 in spending within a 30-day period. This initiative underscores the UKGC’s resolve to implement measures that protect consumers from financial harm. At the same time, it minimises disruptions to the majority of gamblers who play responsibly.

With the pilot’s outcomes, the Commission, alongside the Department for Culture, Media and Sport, aims to assess the long-term viability and effectiveness of these affordability checks in a live environment. As the online gambling landscape continues to evolve, these measures represent a thoughtful approach. Ultimately, the goal is to balance consumer protection with a seamless user experience.