Gambling Commission drops affordability checks proposal
The Gambling Commission has confirmed rumours that it was rowing back on its proposal for affordability checks on customers.
UK.- The British regulator, the Gambling Commission, has dropped affordability checks from its points of action for the development of customer intervention measures.
A consultation on interactions with customers opened in November. The measure that drew most attention was the proposal to introduce mandatory affordability checks on players who spend over £100.
The proposal raised huge concerns in the gambling industry and beyond, with the Gambling Commission extending the deadline on its consultation due to the scale of the response. The regulator received 13,000 submissions, of which 1,000 were full responses and 12,000 responses to a short survey.
The horseracing sector in particular voiced fears that the introduction of affordability checks as expressed in the consultation would severely damage the industry’s finances. Concerns were even raised by the British chancellor Rishi Sunak.
As a result the Gambling Commission has excluded the proposal on affordability checks and will instead focus on developing measures to prevent customers from losing large sums while gambling.
There had already been rumours that the regulator would drop the proposed affordability checks. Acting joint chief executive Sarah Gardner appeared to confirm it in a speech at the 2021 Financial Vulnerability Summit last week.
The Gambling Commission has now confirmed that it will prioritise action on three key risks, and will not include limits for affordability assessments.
It said: “We have carefully considered the responses to the proposals we consulted on and the call for evidence.
“Many people think there should be protections in place for the most vulnerable and that appropriate checks should be in place to identify and prevent cases of clearly unaffordable gambling.
“Many respondents emphasised that measures should be proportionate and targeted at those at risk of harm. At the same time, customers were also concerned about privacy and freedom of choice. We take that seriously.”
Gambling Commission intervention priorities
The new priorities for action are:
-Prevent players from suffering significant losses in a very short space of time.
-Implement safeguards to prevent significant losses over time.
-Further measures for cases in which data suggests a customer is “particularly financially vulnerable and likely to be harmed by their level of gambling”.
The decision to exclude affordability checks does not mean the concept is out for good. The Gambling Commission said it would continue to look into the option.
It’s also possible that the UK government Department for Digital, Culture, Media and Sport (DCMS) may look at implementing affordability thresholds as part of its review of British gambling legislation.
The Gambling Commission said: “We will also proceed as planned with a consultation on thresholds for operators to take action and guidance on what those actions should be.”
