Explainer: how the new interim code for affordability checks will work in practice

A new voluntary industry interim code to introduce a more consistent approach to affordability checks while a frictionless system is piloted and implemented is set to be published on Wednesday. Here is how it will work in practice.

What does the new code introduce?

The code sets out what operators must do when customers wish to make net deposits of more than £5,000 in a rolling month and net deposits of £25,000 in any rolling 12-month period. The thresholds will be reduced for 18-24 year-olds to £2,500 in a rolling month.

What will operators ask for under the new code?

Between the threshold for the lower tier of background affordability checks (£125 per month or £500 in a year) and the upper net deposit limits, operators must carry out one or more of a range of interactions to assess vulnerability.

Those include interactive questionnaires, telephone and live chat interactions, and requests to set a deposit limit.

What happens with deposits of more than £5,000 in a rolling month?

In this situation bookmakers must undertake a risk assessment to determine whether markers of harm are being displayed. This may include an estimate of a customer's income or wealth, as set out in the code. However, none of the actions at these spending thresholds require customers to produce personal financial documents.

What happens when a customer has a net deposit of £25,000 in any rolling 12-month period?

Bookmakers must undertake a thorough check, often requiring documents being provided. Customer winnings can be considered as part of both checks. This is the only trigger for affordability that should produce requests for documents, but anti-money laundering checks will still affect bettors at lower thresholds.

What will happen if a customer shows evidence of potential financial vulnerability?

Betting operators will use a range of interventions from agreeing a deposit limit with a customer through to account closure.

What happens to those customers who are restricted having refused to undergo affordability checks in the past?

The code will not be automatically applied retrospectively but a customer in that situation can ask to have their situation reviewed. Other risk factors may be at play which prevent restrictions being lifted.

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