The UK Gambling Commission has confirmed that they are delaying the roll-out of their controversial financial risk assessments.
It had been assumed that the regulator would green light their policy, abbreviated to FRAs, at their board meeting yesterday.
However, after a ferocious backlash, which saw trade bodies, MPs from both sides of the political divide and even anti-gambling campaigners united in their opposition, Commission chiefs have revealed they will take more time to assess the findings of their FRA pilot scheme.
Feeling the Heat
It was in the Gambling White Paper, published back in 2023, that the concept of affordability checks – latterly named financial risk assessments – was first introduced.
The decision was taken to test out the concept behind the scenes, with a pilot study launched in the summer of 2024.
That ran for the best part of 18 months, with the Gambling Commission detailing its progress across three stages. Although the efficiency of the checks, which have to be ‘frictionless’ to be considered viable, improved from one stage to the next, the best result remained 97% frictionless.
And that was one of the areas that caused the most concern for critics, who argued that the 3% would need to present sensitive data – including bank statements and wage slips – before they were allowed to bet with their desired stake size.
Under current principles, checks would be initiated on punters that lose £1,000 within a rolling 24-hour window or £2,000 within a 90-day period.
Gambling industry bodies have argued that the checks should not be introduced until they are 100% frictionless, while doubts remain over the consistency of data provided by different credit agencies on the same individual.
It was speculated that the regulator even intended to implement FRAs without the evidence first being scrutinised by government or an independent body – something that caused Dr James Noyes, a vocal anti-gambling campaigner, to quit the Gambling Act Review Evaluation Advisory Group.
Whether the backlash has had any impact on their decision only those in the know can say, but it was something of a surprise on Thursday when a Gambling Commission spokesperson confirmed that the decision on whether to introduce FRAs has been delayed.
“The Gambling Commission board met to consider next steps on financial risk assessments. It was presented with an extensive evidence base, but has not yet fully completed its assessment of that evidence. We will communicate further in due course,” they commented.
Decision to Implement
Whether it’s a temporary stay of execution, or a sign that the scheme may be discontinued altogether, remains to be seen.
But it will come as a relief to bookmakers, who are already facing the headwinds of tightened regulation and an ever-more stringent tax regime.
UK horse racing will also be hoping that the checks are waylaid for good. Estimates predict that the FRA scheme, which could provoke some big spending punters to seek out black market operators to circumnavigate having to have their personal data exchanged, could cost the sport £250 million over the next five years alone.
The Gambling Commission’s director of policy, Ian Angus, has had a busy week.
Involved in the board meeting on Thursday, Angus has also given two keynote speeches. The first was to the annual conference of the Lotteries Council, and the second was for the Clarion Payment Providers Summit.
At the latter, Angus touched upon FRAs directly.
“It’s fair to say they [FRAs] have attracted some attention in recent months as well as plenty of coverage” he said.
“Sadly, much of that has included ill informed or inaccurate content.
“FRAs were identified in the 2023 white paper as the best way to bring a frictionless and consistent method for gambling firms to check whether a consumer is in financial difficulties.
“If the decision to implement is made, we will work closely with government, operators and credit reference agencies on the best way to implement them.”
Angus continued by confirming that the decision to implement the checks was not ‘pre-determined’, with the regulator’s board ultimately giving them the thumbs up or down – that is now likely to happen in the summer.
He also speculated that punters would not be required to provide documentary evidence of their wealth or earnings, nor would a bookmaker failing to request a check subsequently be subject to regulatory action.
Meanwhile, the Gambling Commission has confirmed that it is considering lowering the threshold at which potentially financially vulnerable punters are checked from £500 in a 30-day window to £150.