Gambling Commission chief accepts 'confusion' over affordability checks

A senior Gambling Commission executive again denied last week the regulator had ever imposed blanket affordability checks on operators but did admit there had been confusion over the subject.

The consultation on what were described in the government's recently published gambling review white paper as financial risk checks is set to be launched next month.

The issue of affordability checks was probably the most controversial aspect of the debate over gambling which took place during the long wait for the white paper to be published. Customers complained they were already being asked for personal financial information such as payslips and bank statements by operators who it was claimed felt pressure from the regulator to do so.

However, the Gambling Commission said it had not mandated such checks, despite its 2020 Compliance and Enforcement Report having explicitly set out that customers wanting to spend more than the national average should be asked to provide information such as "three months' payslips, P60s, tax returns or bank statements".

The white paper was the subject of a webinar organised last week by law firm CMS at which Gambling Commission executive director Tim Miller was one of the speakers. When asked about that specific statement, Miller said the report "wasn't intended to be a blanket rule" and that the rules instead came from the regulator's licence conditions and codes of practice (LCCP).

Gambling Commission executive director Tim Miller

He added: "I think Andrew [Rhodes, Gambling Commission chief executive]  has said clearly we have never put in place a blanket approach in terms of thresholds and things like that.

"Individual cases have sometimes then been interpreted as being of application across the board but certainly I don't think that was ever the intention of the compliance and enforcement report. I do accept that there has been confusion for some time around some of this and my hope is the white paper and the consultations that follow will help bring some greater clarity there."

While the industry waits for the consultation to run its course and the new rules to be introduced the status quo will continue, which CMS partner David Zeffman said meant it was still not clear what operators should do and that they would err on the side of caution as a result.

Miller said: "When you look at the white paper the thresholds that were being suggested in there are certainly in some instances less restrictive than what some individual operators have chosen to apply. I suppose though once we consult on those that does give that greater clarity and create a clearer more level playing field."

Miller said could not give specific details on what would be in the consultation for fear of kicking it off prematurely but said the commission was aware of the areas that operators wanted clarifying around customer checks.

He added: "What will be really helpful when operators and others in the industry respond to the consultation is use that as an opportunity to help us give you what you need, what is going to be most helpful. I certainly accept that as regulators we don't always get it right and a consultation is an opportunity to learn what works."

The government has said it wants financial risk checks to be "frictionless" and carried out through credit reference agencies (CRAs) and open banking.

Betfred chief executive Joanne Whittaker told the event that the operator was not only having to carry out checks online but in betting shops too, while requests for documentation were also required under anti-money laundering rules. She added: "I am keen to get under the skin of what these CRA checks are, what data points we are going to be looking at so we can ensure that it's the best data point that gives us the best information."

Whittaker pointed out a number of grey areas, such as how a customer's discretionary income would be calculated, although she pointed out: "We are still going to be left with what percentage of discretionary income is acceptable to be used on gambling."

Betfred chief executive Joanne Whittaker

She added: "The other big red herring is restaked winnings, where do we stand on that and how long can we class those winnings as still being winnings for the customer? That's just a big challenging area for us that we are not always aligned with the Gambling Commission on."

Miller was also asked what reassurances customers could be given over financial risk checks that they would be treated fairly. He said the commission would ensure that any information operators had could not be used for other purposes.

"I recognise the concerns that some consumers will have that operators being given access to this information could be used as a way for restricting successful punters," he added. "We need to make sure this is delivered in a way that consumers can feel trust and confidence in the system."

The wait for clarity in this area goes on, and every interested party will be hoping that grey areas are cleared up when the consultation is published, which is expected, according to Miller, before schools break up for the summer.

Rise in online gross gambling yield

The Gambling Commission has revealed that online total gross gambling yield (GGY) – the sum retained by operators after they have paid out winnings – for the first quarter of 2023 was £1.3 billion, an increase of 5 per cent on 2022.

The overall number of total bets and/or spins increased 9 per cent year-on-year, while average monthly active accounts increased 11 per cent.

The commission noted the reporting period covered the Cheltenham Festival, with real event betting GGY increasing by 13 per cent year-on-year to £555 million, and total bets and active accounts also increasing 19 per cent and 9 per cent respectively for that category.

Sky Bet extend EFL deal

Sky Bet have signed a five-year sponsorship extension with the English Football League (EFL) under which the brand will continue as title partner until the end of the 2028-29 season. The operator's chief commercial officer Steve Birch said: "Football is central to who we are and it’s great to be able to support the game and provide investment for clubs across the pyramid."

GamCare chief executive steps down

Anna Hemmings has stepped down as chief executive of problem gambling charity GamCare. She said: "I feel the time is now right for me to move on and explore pastures new and I can be confident that I’m leaving the organisation well equipped for a successful future."

Entain deal boost

Entain has said its recent deals involving TAB NZ and sports media business 365scores are expected to deliver a combined Ebitda (earnings before interest, taxation, depreciation and amortisation) of around £15-20 million in 2024 and approximately £50m in 2025 for the group.

Read these next:

Punters body to meet with gambling minister after 'worrying' data about account closures revealed 

BHA concern over financial risk checks as government reveals white paper 

'Frictionless' affordability checks raise more questions than answers 

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