The UK Gambling Commission (UKGC) wants casino operators to be more proactive about identifying and protecting customers “at risk of harm.” It has issued new guidance in advance of consumer protection requirements that will go into effect September 12.
Operators will be required to use “indicators of harm” to identify vulnerable customers. They must use automated systems to evaluate the impact of customer interactions, and they must monitor customers spending habits, including how much time they spend gambling. They must also cease advertising to these individuals or offering them bonuses once indicators have been identified.
According to the commission, about one in 12 online players qualify for this definition. It doesn’t provide details for what qualifies as an “at-risk customer” but it does identify factors such as age, health, financial condition, attitude toward risk, literacy, number skills and the type of bets placed.
The commission has identified three key financial risks it wants to discourage: binge gambling, significant losses or time and risks for financially vulnerable customers.
Gambling Commission Chief Executive Andrew Rhodes said, “Operators must take account of this guidance ahead of the stronger requirements coming into effect.” He added, “We are giving the industry time to prepare for the changes and expect full compliance by September. “Every gambling business has a role to play to prevent gambling harm and this guidance makes clear what we expect to see, which will be supported with enforcement action should we need it.”
The new requirements mandate licensees to “implement effective customer interaction systems and processes in a way which minimizes the risk of customers experiencing harms associated with gambling.”
Gaming establishments must install systems to monitor customer activity and pay attention to indicators of possible risk and act in a timely manner, while tailoring their response to the number and level of indicators.
According to the Commission, “Historically, gambling licensees have not systematically considered customer affordability when developing their customer interaction policies.” It continued, “Many have used deposit or loss thresholds as a main or sole prompt for a customer interaction, but these have often been set at levels that were inappropriately high, in comparison to the average amount of money that the majority of people have available to spend on leisure activities.”
It adds, “Open source data exists which can help licensees assess affordability for their GB customer base and improve their risk assessment for customer interactions. Thresholds should be realistic, based on average available income for your customers.”
Eventually the commission plans to provide further guidance on financial risk, but says licensees should not wait before contemplating how to manage the risks.
It concluded, “If the licensee’s systems do not identify numbers of customers at least in line with the problem gambling rates for the relevant activity, those systems are likely to be failing to identify the right proportion of customers,” adding, “Operators must ensure that they are on track to meet the minimum levels of customer interactions over an annual period, and to do so should assess progress monthly.”
