After much opposition to the originally proposed financial checks for gaming—followed by collaboration with the U.K. Gambling Commission (UKGC)—the Betting and Gaming Council (BGC) has created a “voluntary code on customer checks,” SBC News reported May 1.
This is seen as an interim measure to ease casinos into government mandated financial checks and know-your-customer (KYC) requirements. It is also surrendering to the inevitable since the U.K. has announced plans to adopt new financial checks on customers as part of carrying out the gambling White Paper.
BGC hopes this will raise standards while reducing private financial document requests when vetting players whose accounts exceed £5,000 in a month or £25,000 in a year.
The code requires BGC members to “undertake a risk assessment of that customer to: i) understand their financial situation (if not already known); and ii) assess whether that customer is displaying any indicators of harm.”
For customers whose annual deposits exceed £25,000, casinos will be required to request financial documents, described as “enhanced consideration (which may be similar to an operator’s existing enhanced due diligence process).”
According to the Council, the code was created “in response to the ongoing debate around affordability, the BGC, Government, and GC are taking action now to find practical solutions for online betting and gaming, giving greater clarity to customers and horse racing, while enhancing standards.”
The BGC has for many years committed to enhanced protection for vulnerable populations, such as those under the age of 24.
Under the code, operators must contact customers by phone or chat to review their affordability “including estimating their income or wealth” along with information about their jobs, title, salary and their assets such as investments and savings.
They can supplement this with reviewing open-source data available to the public.
BGC Chairman Michael Dugher told SBC News, “This Code is good progress toward solving an issue that has generated such heated public debate. It will significantly increase the consistency of safer gambling standards while removing intrusive document checks for many who are currently subject to detailed checks.”
He said he’d like to see a new code on Anti-Money Laundering Checks to complement this code.
UKGC CEO Andrew Rhodes approves.
“This voluntary code will help ensure a consistent and transparent approach for consumers across participating operators where customer spend is the trigger for action,” he said, according to SBC News. “The thresholds in the code represent a set of minimum standards agreed upon by operators, including backstops where they will consider and engage with customers where necessary.
“We think this code will help address the varying approaches from operators to customer spend triggers today, whilst we conduct a pilot on the use of the frictionless financial risk assessments that the Government proposed in their White Paper.”
The government is conducting a pilot program of “light checks” of customers who have lost £150 within a 30-day period or £500 within a year. A more detailed check is mandated when gambling losses exceed £1,000 within 24 hours or £2,000 within 90 days.
This six-month pilot will begin at the end of August, says the Commission, “and should we then decide to fully implement the assessments, they would not be introduced in a live environment before 2025.”
“We are also pleased to be taking forward a pilot of financial risk assessments and data collection, which together will ensure that we can make informed decisions about how these assessments can be implemented in a way that supports both consumer freedom and protections,” Rhodes said. “As a gambling regulator, it’s vital that the introduction of new rules is based on evidence and takes into account the views of consumers and other interested parties.”
The Commission added that customers would not be affected by the trial, which would ensure that the Commission can “refine the data-sharing processes before assessments are rolled out in a live environment.” In addition, customers’ credit ratings would not be affected.
Results from the pilot program may determine the final financial risk assessments program. The Commission added, “We intend to publish a final and full response to the consultation with our decision, which we expect will not be until at least 2025.”
Department for Digital, Culture, Media and Sport Secretary Lucy Frazer commented, “Over recent months we have been listening carefully to the views of industry, horse racing, campaigners, charities, and ordinary punters. We are committed to a balanced approach, which respects the personal freedom of the many millions of people who gamble without issue, while protecting people from the potentially destructive impact of gambling addiction.”
Meanwhile, the Commission published its timeline for the next phase of implementing its initial proposals. Financial risk and vulnerability, online games design and improving consumer choice on direct marketing, will be implemented beginning in August 2024 and ending January 2025.
The Commission also unveiled new rules for remote games, debuting Jan. 17, 2025, which are intended to reduce the intensity of such games while prohibiting features that give players the sense they have control. There will also be new rules around celebration features that imitate that the player has won more than was staked, spin speeds of less than five seconds and features that allow players to play several games at the same time.
Customers will also be given the option of opting out of direct marketing.
