Gambling commission to introduce affordability checks

The Gambling Commission has announced that it will be introducing Financial Risk Assessments (FRAs) to identify and support those most at risk from gambling harms. The so-called ‘affordability checks’ will be introduced in a staged approach after consultation on implementation over the summer.

The commission has highlighted that evidence suggests that some high-spending gamblers are experiencing financial difficulties but are not identified by gambling companies. FRAs will be used to identify and support these high-spending individuals and will be rolled out in a staged approached. The first stage will be carried out by the largest gambling operators for those who spend multiple thousands of pounds over a 24-hour period, an unusually high-spend pattern that only 0.5% of gamblers reach.

Further stages of implementation will be developed in consultation with stakeholders and other groups, and will not enforce breaches for FRAs during the early stages. Eventually the FRAs will be applied to gamblers over 25 who deposit over £1,000 in a 24 hour period, or over £3,000 over a 90 day period. For those under 25 these thresholds will be lowered to £750 over 24 hours and £2,000 across 90 days.

Once a FRA has been issued for someone it is expected that operators will respond appropriately, such as reducing marketing send to vulnerable individuals and helping to set deposit limits. A pilot programme shows that 97% of high-spending gamblers could be easily identified through credit reference agencies without affecting a person’s credit score.

Sarah Gardner, Acting Chief Executive of the Gambling Commission, said: “We are confident that our approach, using high-quality data, will enable support for high-spending customers in financial difficulties, while reducing friction for customers who are not in financial difficulties by removing the need for unnecessary and unpopular document checks to understand financial risk.”

Gambling Minister Baroness Twycross said: “I welcome the Gambling Commission's decision to implement financial risk assessments in a careful, phased way. Attention must now turn to successful implementation, so that financial risk assessments work for consumers, gambling operators and the wider ecosystem. The right balance must be struck so that assessments protect those in financial difficulties from the risk of gambling-related harm but do not create unnecessary burdens for the industry or consumers.”