The Gambling Commission (GC) has delayed making a formal decision regarding the implementation of financial risk assessments in the UK.
The GC’s board of directors met on Thursday, 21 May, with the introduction of financial risk assessments – often referred to as ‘affordability checks’ – forming part of the agenda.
The measure was first introduced as part of the white paper into the Gambling Act 2005 review which was published in April 2023.
Part of the research into how the measure would work involved the GC running a pilot study involving a handful of major operators in a closed loop system.
The GC’s results found 97% of checks were “frictionless”, and that only one out of every 1,000 customers would experience a non-frictionless assessment.
Speaking at the Ethical Gambling Forum in Leeds last month, GC executive director Tim Miller said it was “disappointing” that more operators didn’t participate in the pilot study.
After Thursday’s board meeting, a GC spokesperson said the regulator was unable to fully complete its assesment of the evidence base presented surrounding financial risk assessments.
The GC spokesperson said: “The Gambling Commission board met yesterday (21 May) 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.”
The potential adoption of financial risk assessments has been met with staunch opposition from within the industry, with many claiming the practice could drive players towards the black market, as well as deal major financial blows to the horseracing sector.
The British Horseracing Authority wrote an open letter to the Department for Culture, Media and Sport (DCMS) expressing the detrimental effect financial risk assessments could have on the sport. A group of 19 MPs took similar action earlier this month.
James Noyes, who served as a key adviser to the government on the rollout of the policy, stepped down from a DCMS panel earlier this month insisting the implementation of affordability checks without “meaningful evaluation” was “clearly unacceptable”.
The GC has also repeatedly stressed that financial risk assessments won’t be a regulatory requirement for operators.
The Betting and Gaming Council (BGC), which has been a vocal opponent of the proposals, praised the regulator for delaying the decision until all the evidence gathered from within the industry can be considered.
A BGC statement said: “We welcome the Gambling Commission’s confirmation that it is continuing to consider the extensive evidence submitted on financial risk assessments.
“This is an important and constructive step in the process, and recognition that the evidence provided by industry, stakeholders and experts deserves careful consideration.
“However, there is still more work to do to ensure any future proposals are genuinely frictionless, proportionate, and do not drive customers towards the growing unsafe gambling black market.
“We look forward to continued engagement with the Commission in the weeks ahead.”
The post Gambling Commission delays formal decision on financial risk assessments first appeared on EGR Intel.
Regulator says it “has not yet fully completed its assessment” of evidence surrounding the controversial proposals following the conclusion of its board meeting on 21 May
The post Gambling Commission delays formal decision on financial risk assessments first appeared on EGR Intel.