The Gambling Commission has approved the introduction of Financial Risk Assessments for punters, designed to identify and support high-spending customers in financial difficulties. The decision comes despite strong opposition from the racing and betting industry, which warns of significant revenue losses.
Financial Risk Assessment Thresholds
Under the new rules, 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 will be subject to checks. For those under 25, the thresholds are reduced to £750 in 24 hours or £2,000 over 90 days.
The Commission stated that high-spending customers are two to four times more likely to have a debt management plan and two to five times more likely to have a default in the previous 12 months compared to other consumers. "Without being identified, they may continue to receive marketing and promotional offers encouraging further gambling despite being financially vulnerable," the Commission said.
Industry Opposition and Revenue Concerns
The British Horseracing Authority (BHA) has claimed the checks could cost racing £250 million in lost revenue over five years, as punters may be driven to the unregulated black market. Racing relies heavily on betting for its funding, and the industry has mounted a mountain of opposition against the measures.
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."
Implementation and Customer Impact
The Commission added that the vast majority of customers will never require a Financial Risk Assessment. "People who place an occasional bet, are a recent winning customer or even regularly spends hundreds of pounds would be unlikely to need a check. Those who do will have a frictionless, document-free assessment provided by Credit Reference Agencies, with no impact on their credit score," the Commission said.
Gardner further stated: "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."
