Gambling Commission to launch consultation on controversial affordability checks

A consultation on the controversial subject of affordability checks for gambling is set to be launched by the Gambling Commission.

It will cover three areas which the industry regulator said it was prioritising – unaffordable binge gambling, significant unaffordable losses over time and financial vulnerability – with set thresholds for action for each one, although there was no mention of monthly caps on losses.

The news came as the commission finally issued its response to its consultation on remote customer interaction which closed in February last year.

The commission said new "stronger and more prescriptive" rules ensuring online gambling operators do more to identify and take action to protect customers would come into effect on September 12.

The previous consultation, which received a record response of more than 13,000 replies, had included a proposal that a monthly net gambling loss of as little as £100 would mean punters would have to prove their income in order to continue to bet.

Gambling review may be 'bullet between the eyes' for racing, warns John Gosden

British racing's leaders have warned that the impact of intrusive checks requiring customers to reveal private financial information could hit the sport's revenues by more than £100 million a year.

The commission said it would be working with the financial sector and the Information Commissioner's Office on its affordability consultation as well as with the government, whose forthcoming gambling review white paper is expected to include affordability proposals.

A date for the consultation's launch has yet to be set as the commission will want to take the outcome of the government review into account, with the white paper expected in May.

Responding to the commission's announcement, the Betting and Gaming Council (BGC) said it strongly supported the gambling review as an opportunity to raise standards.

However, a spokesperson added: "We believe enhanced spending checks should be used online to identify those showing signs of problem gambling and to focus in on those at risk, so swift interventions can take place.

"But it is essential this is targeted as an industry so we don’t interfere with the personal freedoms of the vast majority of people who gamble safely and responsibly, as research shows that 90 per cent of people do not comply with requests for information.

"Any changes introduced by the government must not drive gamblers towards the growing unsafe, unregulated black market online, where billions of pounds are being staked."

The commission said it would consider the responses on affordability it received as part of its original consultation and summarised some of the issues raised by respondents.

They included that the process was "too intrusive", while some considered it would be "the end of betting and racing".

The commission said betting customers considered the process relevant either only or mainly for online gaming, while others claimed operators would use the excuse of protecting customers to restrict winning accounts.

It was also suggested that, rather than asking customers for data, the data should be accessed through credit reference systems.

The new rules announced by the commission on Thursday will require operators to monitor customers more closely and act more quickly on indications of harm and also to prevent marketing and the take-up of new bonuses for at-risk customers. Guidance on the new rules will be issued in June.

Andrew Rhodes: new rules 'make our expectations even more explicit'

Gambling Commission chief executive Andrew Rhodes, said: "Time and time again our enforcement cases show that some operators are still not doing enough to prevent gambling harm. These new rules, developed following an extensive consultation, make our expectations even more explicit.

"We expect operators to identify and tackle gambling harms with fast, proportionate and effective action and we will not hesitate to take tough action on operators who fail to do so."

Read more on this subject:

MP concerned about 'confusing situation' of government's gambling review

Minister acknowledges racing's serious concerns over affordability checks

'It would be a massive concern' – trainers add voice to gambling review fears

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