UK Gambling Commission Announces Major Improvements in Customer Financial Risk Screening
The UK Gambling Commission has announced progress on its financial risk checks pilot, providing insights from the second phase of the project. The findings reveal a remarkable 97% “frictionless” rate across 1.7 million assessments, a significant improvement from the 95% rate achieved in the first phase. This pilot was launched in August of last year as a key initiative outlined in the 2023 gambling review white paper, aimed at enhancing responsible gambling measures.
The pilot’s trigger point for checks occurs when a bettor’s net monthly deposits reach £500 (approximately $671.29). During the first phase, the process achieved a 95% frictionless rate. In the second phase, which involved 1.7 million checks across 860,000 accounts, the frictionless rate increased to 97%, surpassing the white paper’s initial estimate of 80%. This improvement was attributed to the use of more up-to-date operator data, which enhanced the efficiency of the assessments.
Key insights from data provided by two credit reference agencies indicate that customers triggering these checks are significantly more likely to be in financial difficulty. Specifically, they are two to four times more likely to have a debt management plan and two to five times more likely to have defaulted on payments in the past 12 months compared to the broader UK population. Such findings underline the importance of targeted risk assessments in identifying vulnerable individuals.
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Helen Rhodes, Director of Major Policy Projects at the UK Gambling Commission, emphasized the significance of these findings. She stated that the pilot has helped the commission understand how assessments can be conducted in a largely frictionless manner, facilitating responsible gambling without imposing unnecessary barriers. Moving forward, the focus will be on ensuring the consistency of data across different agencies and supporting operators in better identifying customers experiencing financial distress.
As for the next steps, the third phase of the pilot is currently in the reporting stage, with data collection having been completed on 30 April. The primary objectives are to refine the targeting of high-risk individuals, reduce discrepancies between data sources, and provide clearer guidance to operators for future implementation. The analysis of this phase is expected to continue throughout the summer, contributing to ongoing efforts to improve responsible gambling frameworks. UK Gambling Commission financial risk
