Gambling Commission Fine Tunes Financial Checks for Online Gamblers

Operators of online casinos and other forms of gambling are the latest to be targeted by the Gambling Commission in response to increasing concerns about gambling-related harm in the UK. 

Starting on August 30th, the Gambling Commission will introduce a series of new measures aimed at protecting vulnerable gamblers.  

Additional Checks for Customers Losing £500 or More per Month

Operators will need to conduct additional checks for customers who lose £500 or more per month, with this threshold decreasing to £150 in February 2025. Alongside this, various software providers allow for features on platforms that create an illusion of control for players, like 'turbo' and 'slam stops,' will be banned as of January 17, 2025.

These changes follow the publication of a white paper by the government on gambling reform, which includes proposals for funding addiction treatment through a mandatory levy as well as limits on online slot stakes. Many stakeholders have emphasised the need for early intervention to combat rapid-onset gambling addiction. 

Operators will use publicly available data to identify financially vulnerable customers, although personal identifiers such as job titles or postcodes will not be included. Risky spending behaviours could trigger interventions, including deposit limits or account restrictions. 

In addition, a pilot scheme for financial assessments is being launched to address cases of extreme loss such happened to one customer who was allowed to spend £245,000 in three months, despite having a low income. 

Criticism Over Financial Checks  

The proposed checks have faced some criticism over transparency and methodology. While the gambling industry advocates for 'frictionless' checks—primarily through credit reference agency data—concerns persist about the impact of these measures on consumers. Stuart Andrew, the minister for gambling policy, noted that the intention was for only 20% of customers to undergo checks in the background without their knowledge. 

What Are the Financial Checks?

• Light-Touch Checks: Publicly available data will be used to assess financial vulnerability for about 20% of accounts.
• Risk Assessments: Detailed checks are triggered for significant losses—over £1,000 in 24 hours or £2,000 in 90 days—impacting just 3% of accounts.
• No Sensitive Data Required: 99.7% of customers won't need to provide personal information like payslips.
• Credit Ratings Protected: These checks will not affect your credit score.

Misinformation surrounding these checks has led to misconceptions about their scope and impact. The Gambling Commission aims to clarify these misunderstandings through ongoing consultations and transparency initiatives. 

Finally, the aim is to ensure that all proposed measures will not impede normal gambling activities for the vast majority of customers while striving to mitigate risks for those who may experience gambling-related harm. Feedback from stakeholders and the public is welcomed as the consultations progress, with the goal of implementing solutions that effectively balance consumer protection with personal freedom.