Gambling Financial Risk Assessments questioned by UK parliamentary committee
The Culture, Media and Sport Committee has asked the Gambling Commission for information about its evidence base and rationale for introducing FRAs.
UK.- The Gambling Commission announced this week that controversial Financial Risk Assessments for gamblers will go ahead in a two-stage implementation. However, it appears that political debate over the issue may be far from over.
The Culture, Media and Sport Committee has written to the Gambling Commission to request more information about its decision to introduce the financial checks for British bettors. The cross-party parliamentary body, whose responsibility is to scrutinise the work of the Department for Culture, Media and Sport and its associated public bodies, wants to know about the regulator’s evidence base and methodology as well as the level of engagement with stakeholders.
The committee’s letter to the regulator includes five questions. Firstly, it asks if the Gambling Commission intends to publish the full dataset, evidence base and methodology that informed its decision to proceed with Financial Risk Assessments and to determine the proposed thresholds – something that industry stakeholders are also keen to know.
Secondly, the letter asks the regulator to provide an estimate of whether the changes will result in more or fewer recreational bettors being asked to provide documents or other financial information, compared with existing arrangements.
Noting industry complaints about the amount of engagement in the process, the committee also wants details of the consultations, meetings, pilots and other engagement activities undertaken with operators, consumers, sporting bodies and other stakeholders during the development of the proposals.
As for the implementation of FRAs, the committee asks for an explanation of how decisions have been made regarding participation in the implementation groups, including any rationale for the decision if it was decided not to include representation from the horseracing industry.
The committee has asked for a response by July 24.
CMS Committee chair Dame Caroline Dinenage MP said: “It’s important that people at risk of gambling-related debt receive appropriate support. At the same time any regulatory change must recognise the significant economic contribution made by the industry.
“The Gambling Commission needs to be clear about how the assessments will work and should work closely with bookmakers to ensure new obligations do not impose undue burdens on responsible businesses.”
The response comes after industry stakeholders criticised the Gambling Commission’s decision to implement Financial Risk Assessments before it has published a full evaluation of last year’s pilot programme. Grainne Hurst, Chief Executive of the Betting and Gaming Council, said central issues around reliability, consumer impact and the practical operation of the checks remained unresolved.
The British Horseracing Association, which fears that horseracing betting will be particularly affected, went further. Chief Executive Brant Dunshea described the decision to implement the measure as “self-harm on an immense scale that will have damaging economic and societal implications” and a “clear abdication of duty by the Department for Culture, Media and Sport”.
