The Gambling Commission has confirmed proposals to introduce financial risk assessments (FRAs) on high-spending online gamblers, beginning with those who deposit £5,000 over 24 hours. The checks, first set out in a 2023 consultation linked to the Government’s Gambling Act Review, would involve a “frictionless, document-free assessment” provided by Credit Reference Agencies, with no impact on a customer’s credit score, the regulator said.
Phased Implementation
The FRAs are to be introduced in stages to identify customers in financial difficulties and streamline operator processes. The first stage will target the largest operators where high spend of multiple thousands of pounds occurs over a 24-hour period. For most, this means a £5,000 net deposit over a rolling 24-hour period, “which is a very unusually high spend pattern that less than 0.5% of customers exceed,” the commission stated.
Once fully implemented, FRAs will apply to customers aged 25 or older with net deposits exceeding £1,000 in a rolling 24-hour period or £3,000 over a rolling 90-day period. For those under 25, thresholds are reduced to £750 in 24 hours or £2,000 over 90 days.
Not Affordability Checks
The regulator insisted the measures are not “affordability checks” and will not cap spending or assess income, but instead act as a prompt to identify customers in serious financial distress. High-spending customers are between two and four times more likely to have a debt management plan and between two and five times more likely to have a default in the previous 12 months than the wider population, the commission said.
It raised concerns that without identification, vulnerable customers could continue to receive marketing and promotional offers encouraging further gambling. The commission reassured consumers that the “vast majority” of customers would never need an FRA, and those who place occasional bets or even regularly spend hundreds of pounds would be unlikely to need a check.
Pilot Results
A pilot found that 97% of those spending above threshold levels could be easily and frictionlessly assessed for financial difficulties, meaning less than 3% of accounts would have an assessment and less than one in 1,000 accounts would be unable to get one. For those one in 1,000 accounts, operators must verify identity and may assess financial risk through open banking or document requests.
The commission confirmed that no enforcement action will be taken for failure to act following an FRA during early implementation stages, though operators remain subject to all other licence requirements. The timetable for stage one will be confirmed after engagement with industry and stakeholders through implementation groups established over the summer.
Background and Reactions
Previously, operators only ran basic checks using public data like bankruptcy records when customers deposited more than £500 in a month (later cut to £150), with no routine use of credit reference data for higher-spending gamblers.
Sarah Gardner, acting chief executive of the Gambling Commission, said: “We are confident that our approach, using high-quality data, will enable support for high-spending customers in financial difficulties, while reducing friction for customers who are not in financial difficulties by removing the need for unnecessary and unpopular document checks to understand financial risk. We have listened to feedback throughout the pilot process which has led to us deciding to carefully proceed. We will work with key partners to make sure that they are implemented in the most effective way for consumers and operators.”
Gambling Minister Baroness Twycross added: “I welcome the Gambling Commission’s decision to implement financial risk assessments in a careful, phased way. Attention must now turn to successful implementation, so that financial risk assessments work for consumers, gambling operators and the wider ecosystem. The right balance must be struck so that assessments protect those in financial difficulties from the risk of gambling-related harm but do not create unnecessary burdens for the industry or consumers.”
