Assessing the impact of the UK’s planned affordability checks

Assessing the impact of the UK’s planned affordability checks      

The UK government’s plans to introduce affordability checks have been a thorny issue for some time now. With the UK Gambling Commission’s pilot trial now well underway, the market is already showing signs of slowing even without live checks in place. 

Of course, it’s in everyone’s best interests to promote responsible gambling and protect financially vulnerable players. However, there are fears that the government’s plans could see the entire industry dented as other players are caught in the same net. 

As the pilot runs, it’s worth examining the effect that the prospect of affordability checks is already having on the market and what a full implementation could mean. 

Market contraction and player resistance   

One area that is expected to be disproportionately impacted by the checks is horse racing. Even from the earliest stages of the plans, concerns were raised that the proposal could majorly disrupt this part of the market. Leaders estimate that the checks could potentially wipe £250 million from racing’s revenue over the next five years. 

Signs also point towards a significant degree of resistance among existing players across the board. Many have already signalled their unwillingness to engage and comply with the checks, with 65% of surveyed players indicating as much. 

Privacy concerns are a major factor in this pushback, which could encourage players to explore alternative avenues. There have been suggestions that the strictness of affordability checks on regulated platforms could drive customers to seek out unregulated black-market sites instead. 

Operational changes and evolution   

Operators also face the challenge of adapting their processes in anticipation of the new checks. Meeting the new regulations requires even more robust data handling principles, given the nature of the sensitive customer financial data involved. 

The regulator is also grappling with how limited the information passed to operators needs to be in order to ensure safeguarding without compromising customer privacy. 

The current pilot trial has set initial ‘light touch’ checks at £500 per month from August 2024, reducing to £150 per month in February 2025. Each of these thresholds will impact how checks are handled and the intensity of work required, especially if such strict affordability checks do go forward as a permanent requirement. 

The ultimate aim of the UK Gambling Commission is to implement so-called ‘frictionless’ checks, but there’s scepticism within the industry as to whether that is truly possible with the existing technology and systems. Finding a way to implement affordability checks in a way that doesn’t compromise player privacy or cause unnecessary disruption to play is essential. 

Until the pilot trial concludes, it remains to be seen whether the regulator can deliver on its ideals for these affordability checks. 

Enhanced protections and improved data insights    

While there are undeniable challenges, the proposed checks do still have the potential to improve the player experience. Provided that their implementation does not negatively impact the overall experience or disproportionately impact other players, they would offer an enhanced degree of protection for more vulnerable individuals. 

In addition to tackling problem gambling, the checks could also contribute to the identification of fraudulent behaviour by helping to detect unusual spending patterns. 

Another angle to consider is the potential for data insights gained through the checks. With more detailed customer data – as well as the single customer view (SCV) approach – companies could better understand their existing playerbase. Not only would this allow for more targeted responsible gambling interventions, but it could also feed into a wider improvement in customer insights. 

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Until the checks are fully implemented it’s hard to be sure of what the true extent of their impact will be. We can already see signs of market slowdown, but there is the chance that this trend could reverse once the new systems are all in place and more clearly outlined for customers. 

If the Gambling Commission is able to deliver the ‘frictionless’ checks it aims for, this could help to allay the concerns of the wider industry. Above all else, the experience of players remains at the heart of the issue. 

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