New interim affordability code introduces £25,000 threshold for submitting financial documents

A new interim gambling industry code, which it is promised will reduce the number of punters being asked for personal financial documents in order to prove they can afford their level of betting, is set to be published on Wednesday.

The voluntary 'Code on Customer Checks', which has been developed jointly by industry body the Betting and Gaming Council (BGC) and the Gambling Commission, and backed by ministers, will operate until the promised frictionless affordability checks proposed in the government's white paper are developed, tested and implemented.

It is intended to sweep away what have been described as the "inconsistent" checks being applied currently, introduce uniform rules and feature much higher thresholds than those set to apply after the white paper proposals are implemented.

Under the new code, only those making net deposits of more than £25,000 in a rolling 12-month period would have to provide financial documents to prove their ability to afford their gambling. If a customer wishes to deposit more than £5,000 in a rolling month, a bookmaker will need to carry out a risk assessment to determine whether evidence of gambling harm is being shown.

At lower levels of spend, bookmakers will be expected to continue carrying out customer interactions, including questionnaires, phone and live chat interactions and requests to set a deposit limit. If interactions show evidence of "potential financial vulnerability", bookmakers will be expected to deploy a range of interventions including deposit limits and account closures.

The news will be welcomed by British racing's leadership, who have blamed the checks for a sharp fall in online betting turnover on the sport.

It is understood that pressure from racing and its customers, including a long-running campaign in the Racing Post and the petition against checks which prompted a parliamentary debate, played a key role in laying the groundwork for the interim code.

The news comes with the Gambling Commission's response to the consultation it ran on the government's proposals for affordability checks, or financial risk checks as they have been termed, expected imminently.

Michael Dugher: code represents "good progress"

BGC chief executive and acting chair Michael Dugher said: "This code is good progress towards solving an issue that has generated such heated public debate. It will significantly increase the consistency of safer gambling standards while removing intrusive document checks for many who are currently subject to detailed checks. This should be particularly welcomed by British horseracing.

“It is vital to note that this new code sits on top of a host of other safer gambling measures our members already conduct, and which only exist in the regulated sector."

The BGC did warn that while the new code would deliver progress towards resolving the issue of intrusive document checks, it would not offer a complete solution, as anti-money laundering (AML) checks still require requests for documents at lower deposit levels.

A new code for AML checks is also being worked on by the BGC and Gambling Commission.

Dugher added: "While this is good progress in the right direction, we are acutely aware more needs to be done.

"So I wish to see a new code on anti-money laundering checks to complement this code on customer checks to further raise standards on consistency and reduce the disproportionate need for document requests, rightly ensuring that betting with our members remains free from crime."

Culture secretary Lucy Frazer: government has been "listening carefully"Credit: Anadolu Agency

Culture secretary Lucy Frazer described the code as "a major step forward" which would help protect those at risk of gambling harm without penalising ordinary punters.

She welcomed the work done by the gambling industry, and added: "Under the new interim code, there will be a reduction in the number of customers subject to the current inconsistent approach, as well as greater transparency and consistency across the sector."

Frazer said the government had been "listening carefully" to the views of industry, horseracing, campaigners, charities and ordinary punters and was committed to balancing personal freedom while protecting people from gambling addiction.

She added: "While the interim code is a significant step, we know there is more to do, and the Gambling Commission is set to publish its response to the consultation on financial risk checks.

"This response will set out a new system of light-touch, frictionless financial vulnerability checks and a pilot of the enhanced risk assessments, and we remain committed to only bringing in these assessments if we are assured they will be genuinely frictionless for the vast majority of punters."

Andrew Rhodes: says code will address issues while frictionless checks are piloted

Gambling Commission chief executive Andrew Rhodes said the voluntary code would help ensure a "consistent and transparent approach" for customers where spend is the trigger for action.

He added: "The thresholds in the code represent a set of minimum standards agreed by operators, including backstops where they will consider and engage with customers where necessary.

"We think this code will help address the varying approaches from operators to customer spend triggers today, whilst we conduct a pilot on the use of the frictionless financial risk assessments that the government proposed in its white paper.

"Of course, operators remain under the obligation to meet other requirements to support customers at risk of harm. All the normal monitoring and action by operators where their customers may be showing signs of risk or harm remain the same and this can often be done in ways which do not involve document checks."

Read these next:

 New code on affordability checks is a hard-won victory, but concerns remain 

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

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