Affordability checks won't happen unless frictionless, vows minister

Sports minister Stuart Andrew told MPs on Tuesday that controversial financial risk checks would be introduced only when they were genuinely frictionless and suggested such checks could be piloted to make sure they work.

Andrew, appearing before the Culture, Media and Sport Select Committee as part of its inquiry into gambling regulation, sympathised with Racing Post readers who have voiced concerns over affordability checks after the Post presented the minister and members of the committee with a dossier of letters, saying it was not up to the government to tell people how they should spend their money.

He also praised the "massive contribution" British racing makes and said he hoped the sport and bookmakers could come to an agreement on levy reform.

The Gambling Commission, whose chief executive Andrew Rhodes also gave evidence to the committee, is consulting on a number of proposals in the Gambling Review white paper published in April, including financial risk checks, the term the government has chosen for affordability checks.

Gambling Commission chief Andrew Rhodes faces questions at a culture, media and sport select committee meeting

There has been particular criticism about the degree to which the proposals will comply with the government's intention that the checks should be frictionless, with fears that many bettors will have no choice but to provide access to bank statements and other financial information.

Members of the committee had received a sample of the letters the Racing Post has been sent outlining readers' concerns over the checks. Damian Green MP said: "We've had more than 100 letters sent to us by the Racing Post of people basically saying, 'I'm an adult, I am doing something I enjoy, I can take decisions how to spend my own money, so butt out of my life'. Do you have any sympathy with that view?"

Andrew told Green that it was clear there were strong arguments on each side of the debate and he had been struck by the testimony of families who had suffered due to gambling. He added: "Then there are the vast majority of people who do enjoy gambling in a safe way and it isn't for us to tell them how to spend their money.

"What we are trying to do here is bring about a balanced and proportionate approach which addresses many of the changes which have happened in the gambling industry over the last 20 years but also seeks to bring about a uniform approach among operators."

Andrew said the government was "working with agencies across the board" to ensure checks are frictionless.

The Culture, Media and Sport Committee hears evidence from representatives of the Gambling Commission

"I want to be clear on this that we want to make sure that this system works, and we will, if necessary, pilot this to make sure it's working," he revealed. "Only when we are confident that this has delivered the frictionless tests we envisaged will we then look at rolling it out."

Culture secretary Lucy Frazer told the House of Commons that checks would be "frictionless and happen behind the scenes" when the white paper was published in April.

Committee member Kevin Brennan MP asked Andrew if he was "content" that the proposals in the Gambling Commission's consultation squared up with Frazer's message.

"Yes, I think it will bring out what we are seeking in terms of the structure of the model," Andrew said. "I was very clear earlier on that when we say we want frictionless checks we mean it. The last thing I want to see is those who are enjoying gambling in a safe manner, in a way they have for many years, being impacted."

Steve Brine MP brought up the concerns about the white paper expressed by the British horseracing industry, which fears millions of pounds could be wiped from its income by financial risk checks, and asked Andrew about the review of the levy system which was announced with the white paper.

The minister said the government recognised the contribution racing makes, adding: "There is no way we want to do anything to harm that. Yes, we are bringing in these checks, but we want them to be frictionless, we want a standard approach throughout."

Andrew said both the BHA and Betting and Gaming Council had made representations to the Department for Culture, Media and Sport (DCMS) over levy reform and that it was considering a recommendation from the BHA.

However, he added: "We have also said to the two to get together and come up with some proposals."

Earlier, Rhodes had told the committee the commission had received around 1,500 responses to their consultation so far and that "most of those, if not nearly all of them, are in the area of financial risk checks". He described the checks as the most challenging and debated part of the Gambling Commission's work at the moment, with "some very strong views being expressed".

He added it was the commission's intention "to implement exactly what the white paper says".

Asked by committee chair Dame Caroline Dinenage what assessment the commission had made of the potential impact of the consultation on horseracing, Rhodes said: "In terms of an assessment of the overall impact of the white paper, that would be for the department. It's the department's white paper, not the Gambling Commission's."

Select committee meeting: the key points

• Sports minister Stuart Andrew told the select committee that the government would be true to its promise when the white paper was released, saying: "When we say we want frictionless checks we mean it."
• For the first time, Andrew revealed that the new system of checks being proposed in the Gambling Commission consultation could be the subject of a pilot, saying it would only be rolled out when they were confident checks would be frictionless.
• Andrew said the government was encouraging the BHA and Betting and Gaming Council to come up with their own proposals for levy reform together to secure a "good future for the sport".
• The minister reiterated the "massive contribution" British racing makes to the United Kingdom and said the government would do nothing to harm that.
• However, the Gambling Commission told the committee that its focus was narrower than the government's and that it was concerned with the licensing objectives in the Gambling Act rather than issues such as horseracing.
• The commission's chief executive Andrew Rhodes told MPs that it had received around 1,500 responses to the consultations it launched this summer, with nearly all on the "most challenging" subject of financial risk checks. 

To complete the Gambling Commission's consultation on affordability checks, visit racingpost.com/consultation and follow the instructions.

The Racing Post also wants to hear from you: What has been your experience of affordability checks since the white paper was published at the end of April, and what do you think of the government's proposals? Have affordability checks affected your betting behaviour?

It's a chance for your voice to be heard. Email the Racing Post at editor@racingpost.com with the subject 'Affordability checks' to share your experiences, your thoughts about the government's proposals, and your contact details.

Read more:

You have told them to 'butt out' - now the government and Gambling Commission must respond 

Gambling Commission chief Andrew Rhodes claims risk of gambling black market is overstated 

'It gives a whole new take on the postcode lottery' - key quotes from crucial select committee meeting  

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