Light-touch financial vulnerability checks just about here
30 August sees the initial implementation of the Gambling Commission’s controversial financial vulnerability checks.
Who will be affected?
What does this mean for the casual online slots player wagering a few pounds here and there? Nothing, according to the Gambling Commission (UKGC).
And for someone wagering a bit more? The UKGC: ‘It’s estimated that just 3% of accounts would undergo financial risk assessments. And … just a tenth of that 3% would not have a frictionless check via credit reference agency or open banking data.’
That means just 0.3% of account holders will be required to provide additional financial information in order to deposit money and play.
When do the checks kick in?
How much is going to trigger a financial check? From 30 August those depositing more than £500 a month will trigger a check. However, from 28 February that figure reduces to £150 a month.
Why are they doing this?
Designed to protect the vulnerable, the plans have nevertheless generated heated debate – with accusations of ‘overreach’ and ‘nanny state’ echoing around. The Racing Post took up the mantle enthusiastically, challenging the UKGC at every turn, even refusing to publish a placatory open letter from the UKGC.
Controversy, lack of endorsement
The UKGC inflamed the situation when they tried, essentially, to suppress data from a 12,000 response player survey which showed widespread disapproval – being selective in summarising the consultation results. It took a freedom of information request to get things out in the open:
- Only 14% would provide information requested by a gambling company.
- 42% would refuse to share financial details.
- 22.5% would stop betting with that company.
- 77.6% said businesses shouldn’t be required to assess a customer’s wagering affordability, with:.
- 64.4% saw it infringing on freedoms
- 61.4% stating privacy concerns
Affordability / vulnerability checks may well impact only a fraction of players. That remains to be seen, as does just how ‘frictionless’ the next few months will be.