The Culture, Media and Sport (CMS) Committee has written to the Gambling Commission (GC) to ask for more clarity on the regulator’s decision to implement financial risk assessments (FRAs).
The GC announced on 7 July it was moving ahead with a phased rollout of the controversial measure, despite fierce opposition from the likes of the Betting and Gaming Council and the British Horseracing Authority.
Signed by CMS Committee chair Dame Caroline Dinenage and addressed to acting GC CEO Sarah Gardner, the letter poses a series of questions to “assist the Committee’s understanding of the policy and its likely impact on consumers and industry”.
The Committee queries whether the GC will publish the “full dataset, evidence base and methodology that informed its decision to proceed with FRAs and to determine the proposed thresholds”.
The initial stage of the phased rollout will see only the largest operators required to undertake FRAs, with the first threshold set at £5,000 net deposits in a rolling 24-hour period for players aged over 25, or £2,500 for those under 25.
The triggers will eventually be set at £1,000 net deposits in a rolling 24-hour period and £3,000 net deposits in a rolling 90-day period for those 25 and older, or £750 in 24 hours and £2,000 in 90 days for 18- to 24-year-olds.
The GC has not yet confirmed when the initial implementation will begin nor the timeline for lowering the trigger thresholds, though operators will be consulted with over the summer.
It was also stressed that operators will not face enforcement action period for failing to adhere to the rules during the implementation.
The CMS Committee letter also asks the GC to “provide an estimate of whether these changes will result in more or fewer recreational bettors being asked to provide documents or other financial information, compared with existing arrangements”.
The letter also urges the regulator to “set out in detail the consultations, meetings, pilots and other engagement activities undertaken with operators, consumers, sporting bodies and other stakeholders during the development of these proposals”, in order to address concerns over a lack of engagement from the GC towards the industry.
In response to the GC’s decision to establish implementation groups over the summer to aid with the next phase of delivery, the CMS Committee asks the regulator to elaborate on how groups will be chosen and the rationale behind the decision.
Addressing the horseracing industry, the letter questions whether the sector would be represented, why it might be excluded, and how the GC will ensure the views of the racing sector are taken into account.
A copy of the letter has been sent to the head of the Department for Culture, Media and Sport (DCMS), Baroness Twycross.
Dinenage wrote: “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.”
There has also been speculation industry stakeholders could launch a legal challenge, such as a judicial review, to try to overturn the decision.
The shadow gambling minister, Louie French MP, said the implementation of FRAs should have been subject to a debate in parliament. He also urged the government to “take control of the Gambling Commission”.
The GC said it will aim to respond to the CMS Committee letter within the next fortnight.
A GC spokesperson said: “We take engagement with parliament and its select committees incredibly seriously.
“We keep parliament and the DCMS Select Committee updated on our work and of course we will be responding to Dame Caroline Dinenage’s letter by 24 July.”
FRAs were first touted in 2023 as part of the white paper into a government review to overhaul the Gambling Act 2025.
Part of the research into how FRAs would work involved the GC running a pilot programme, which started in August 2024 and involved a handful of major operators in a closed loop system.
According to the GC’s results, 97% of checks were “frictionless”, with only one out of every 1,000 customers experiencing a non-frictionless assessment, yet operators have questioned the consistency of the data supplied by credit reference agencies and have called for the full findings from the pilot to be published.
GC executive director Tim Miller has previously spoken of his disappointment that more operators weren’t included in the pilot programme for a wider assessment of FRAs.
Last month, Miller announced he will leave the regulator in September after 10 years in the role.
His departure follows the exit of CEO Andrew Rhodes, who stepped down earlier this year before going on to join Harris Hagan-founded advisory firm Hawkbridge.
Interim CEO Gardner is overseeing the implementation of FRAs while the process to find a permanent replacement for Rhodes’ is underway.
The post MPs call for greater clarity from GC over financial risk assessments first appeared on EGR Intel.
Chair writes to the regulator with a list of questions and urges the release of the “full dataset, evidence base and methodology” behind the decision to press ahead with controversial move
The post MPs call for greater clarity from GC over financial risk assessments first appeared on EGR Intel.