Controversial affordability checks on punters given green light by Gambling Commission despite opposition from racing and bookmakers

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The Gambling Commission is to press ahead with the implementation of controversial affordability checks on punters despite a mountain of opposition from British racing and bookmakers.

However, no date has been set for their full introduction, with the commission saying that would happen in stages starting with the creation of an implementation group working over the summer.

The Gambling Commission's acting chief executive Sarah Gardner said: "We are confident that our approach, using high-quality data, will enable support for high-spending customers in financial difficulties, while reducing friction for customers who are not in such difficulties by removing the need for unnecessary and unpopular document checks to understand financial risk.

There are fears affordability checks could wipe £250 million from the sport's revenues over five yearsCredit: Edward Whitaker (racingpost.com/photos)

“We have listened to feedback throughout the pilot process which has led to us deciding to carefully proceed. We will work with key partners to make sure that they are implemented in the most effective way for consumers and operators."

However, one industry source said: “It may sound like a softening, but this is the Gambling Commission introducing an unprecedented level of intrusion and control over people’s spend on a legal activity. It’s flawed, anti-competitive and based on dodgy evidence. 

"[Culture secretary] Lisa Nandy speaks about the joy gambling brings to millions, but I doubt the regulator would even countenance saying the same. They’re doing the anti-gambling campaigners' work for them."

Affordability checks, also called financial risk assessments, were first officially proposed in the last government's white paper in 2023, with the Gambling Commission launching a pilot to test whether they would be frictionless, as promised, for the vast majority of customers the following year.

However, gambling industry trade body the Betting and Gaming Council has warned the trial showed the checks had failed to meet that pledge and would instead result in customers being asked for personal financial documents due to inconsistent results from the credit reference agencies (CRAs) involved.

The commission's director of major policy projects and evaluation Helen Rhodes told journalists they were confident the data was "the most accurate and relevant data about financial risk that is possible for operators to access".

She added: "No other measure offers the same quality of data or consistency. We actually think it will improve consistency in the sector because the current approaches by operators are very inconsistent."

Rhodes said the commission had listened to operator concerns and would work with CRAs to give more information about the recency and severity of any financial difficulties a customer might be facing.

She added: "We do see that the issue of inconsistency has perhaps been overblown by some stakeholders and this is an issue where we have looked carefully at all the evidence and the information available to us and are confident that this is the best possible option for us to implement."

The Gambling Commission board met in May to examine the controversial measures, but delayed a decision on whether to implement them to consider the evidence more fully. 

The regulator claimed the vast majority of customers would never require a check and that 97 per cent of those spending above the threshold levels could be "easily and frictionlessly assessed for financial difficulties".

In the first stage of implementation the commission said the checks would only be carried out by the largest operators when a £5,000 net deposit in a rolling 24-hour period was met.

Once fully implemented the checks would be applied to customers aged 25 years or older with net deposits exceeding £1,000 in a rolling 24-hour period, or £3,000 over a rolling 90-day period. For those under 25 those thresholds would be reduced to £750 in a rolling 24 hours or £2,000 in a rolling 90 days.

However, no timeline with set dates has been revealed for the checks' implementation.

Rhodes said that was unusual but explained that both operators and CRAs would need time to make the necessary changes now a decision had been made.

She added: "That being said, we don't want undue delay in taking this important measure to protect consumers, so we will want to work with those implementation groups to work as fast as is sensible and possible."

Questions have also been raised about the commission signing off the checks for implementation, with stakeholders not having seen all the evidence.

Rhodes claimed "a great deal" of information from the pilot had already been revealed and more would be released as part of its consultation response in the autumn, but added that other information would only be summarised due to "commercial sensitivity".

Gambling minister Baroness Twycross said of the news: "I welcome the Gambling Commission's decision to implement financial risk assessments in a careful, phased way. Attention must now turn to successful implementation, so that financial risk assessments work for consumers, gambling operators and the wider ecosystem.

"The right balance must be struck so that assessments protect those in financial difficulties from the risk of gambling-related harm but do not create unnecessary burdens for the industry or consumers."

Read these next:

Lack of parliamentary scrutiny of affordability checks 'beggars belief', says BHA 

Decision on affordability checks discussed at Gambling Commission board meeting 

‘A complete dereliction of their duty’ - John Gosden hits out at government ‘insanity’ over affordability checks 

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