British Gambling Commission addresses growing uncertainties over financial risk checks.

(AsiaGameHub) –   The Gambling Commission’s executive director has stated that discussions surrounding financial risk checks have become increasingly toxic.

UK.- Speaking at the Ethical Gambling Forum held at Flutter Entertainment’s Leeds headquarters, the British Gambling Commission’s Executive Director, Tim Miller, used a substantial portion of his speech to justify the regulator’s investigation into financial risk assessments (FRAs). Despite ongoing criticism from the industry and a campaign by the racing sector, he maintained that the checks would be “frictionless for the vast majority of customers”.

These checks were first suggested in the Gambling Act review White Paper in April 2023 by the former Conservative government. The Gambling Commission initiated a six‑month pilot program in August 2024. The industry has consistently criticised the pilot’s outcomes, claiming the checks proved more intrusive than planned for many customers and that results varied significantly between different credit agencies.

Addressing industry representatives, Miller expressed regret that the debate had “become more high-pitched – more toxic”. He emphasised that no decision has been made regarding the implementation of the checks, but also contended that the pilot’s findings offer “more evidence that makes clear the status quo can’t hold.”

He stated: “We have identified a group of vulnerable customers that current methods are failing to detect. Participants in the pilot were between two and four times more likely to be on a debt management plan and between two and five times more likely to have had a default in the past year compared to similar individuals in the general population. While some of these customers might be identified and assisted by operators currently, a significant number are being overlooked.”

Miller reported that only a “very small proportion of active accounts” would need an assessment and be unable to complete it seamlessly.

“The white paper anticipated that approximately 0.6 per cent of active accounts would be in this category. The pilot indicates the figure is actually 0.1 per cent,” he explained. “This means just one in a 1000 accounts would be unable to have a frictionless assessment. Furthermore, this number could be lowered even more if operators fulfil their existing obligations at the outset of the customer relationship by verifying customer details and identities correctly.”

Miller also sought to correct what he called “other misconceptions running wild“.

“The proposed thresholds for an assessment are not limits or caps on how much a customer can spend,” he clarified. “They are not ‘affordability checks’ under a new name – the checks we are piloting do not try to determine what a customer can afford to gamble. Finally, and perhaps most importantly, there would be no requirement for document checks after a financial risk assessment. In fact, if implemented, these checks would enable us to issue clear guidance to operators that they must not ask consumers for documents to assess financial risk following such an assessment.

“To reassure the industry, our compliance approach would also guarantee that not asking for documents after a financial risk assessment would not trigger regulatory action. Requesting financial documents in these situations would lack a legitimate regulatory purpose, and consumers would be within their rights to decline such requests.”

Miller announced that the Gambling Commission will present recommendations on the next steps to its board in the “near future”. He added: “Our Board will be the decision-maker on this matter, and no one should attempt to pre-judge the outcome. Our Board will need to be convinced that there is a strong evidence base for any further action on financial risk checks and that the Government’s public policy stance still supports such a move.

“However, if the decision is made to roll out these assessments, we will collaborate closely with DCMS, the industry, and credit reference agencies to form an implementation group. This group would work together to create the specifics of a practical implementation plan and schedule. It would also assist in developing guidance for operators to ensure they adopt a proportionate method for engaging with customers when a financial risk is detected.”