The United Kingdom Gambling Commission (UKGC) is being asked to revisit its affordability checks by a leading gambling body in the country.
The Betting and Gaming Council (BGC) and the British Horseracing Authority (BHA) have both called on the agency to consider amending its financial risk assessment (FRA) protocols. They argue the process is shedding thousands of potential customers.
Concerns raised at new processes
The UKGC have previously said the changes stem from the government’s 2023 review of gambling laws, which outlined dozens of recommendations designed to modernize the sector and curb harm. In total, regulators are working through more than 60 proposed measures intended to balance consumer protection with industry competitiveness.
A central feature of the overhaul is the introduction of enhanced FRAs for customers. The checks are intended to identify signs of harmful gambling behavior by evaluating whether players can afford their spending.
Since August 2024, operators have already been required to carry out so-called “financial vulnerability” checks. These lighter-touch reviews are triggered when a customer’s net deposits reach £150 within a 30-day period, prompting operators to assess potential risk indicators.
The forthcoming assessments would go further. Under the proposed system, background financial checks could be initiated automatically when a customer spends £1,000 within 24 hours or £2,000 over three months. Regulators have said the process will rely on existing data sources and is being designed to avoid requiring customers to submit sensitive documents such as bank statements.
Still, the plan has drawn scrutiny from industry groups and some observers. Early testing of the system revealed inconsistencies in the data returned, illuminating the differences in how credit reference agencies evaluate an individual’s financial position. Critics warn that such variations could lead to uneven outcomes for consumers.
Regulators say they will continue refining the approach before full implementation, emphasizing that the goal is to reduce gambling-related harm without placing unnecessary burdens on players or operators.
Customers face increased friction, says BGC
Grainne Hurst, Chief Executive Officer of the BGC, worries the FRAs will simply push customers into the arms of illegal bookmakers, many of which do not enforce the same protections.
She told the Racing Post in an interview: “The financial risk assessments proposed by the Gambling Commission risk duplicating existing protections while creating significant friction for customers, which will only push more people to the unsafe, illegal black market.
“The government should therefore ask the Gambling Commission to pause and review FRAs as part of a wider reassessment of the player protection system, ensuring any changes are evidence-led and protect customers without driving them towards the unsafe, unregulated black market.”
CEO of the BHA, Brant Dunshea, added: “Horserace betting is proven to be one of the safest forms of betting, but it can only be safe when it is done in the legal, regulated industry. Without a better solution the illegal market will only grow, causing more harm, depriving the government of tens of millions of pounds in lost tax revenue, and sparking widespread job losses across Britain.
“Given the recent regulatory and tax changes, I urge the commission and government to carefully consider whether the timing is right for this additional layer of regulation.”
UK shadow cabinet minister urges UKGC to target black market entities
Shadow Secretary of State for Culture, Media and Sport, Nigel Huddleston, believes the government and the UKGC needs to be doing more to hold black market gambling operations to account, especially in the wake of the Labour budget in November.
The government’s budget targeted the gambling sector with steep tax hikes on online betting and casino games, aiming to curb harm and raise revenue. Lower-risk activities like bingo and retail betting were largely spared, reflecting a more selective approach to regulation.
Huddleston said: “The government must recognise that tax policy is not separate from consumer safety, it is part of it, and if Labour’s tax rises make regulated operators less viable and less competitive, illegal operators will begin to flourish outside the law.
“Second, enforcement has to match the reality of the threat. That means a relentless focus on disruption, on illegal sites, illegal advertising and illegal payments and real accountability for the platforms and providers that enable black market activity.”
Stoke on Trent MP, Gareth Snell, from the Labour Party recently tabled an amendment to the party’s budget addressing those same tax rises.
He said: “One third of Gibraltar’s tax receipts come from the [gambling] sector, so anything we do in this place that has an impact on the sector there, I entirely accept that this is not an intended consequence of the decision, would leave a huge hole in its economy, and that will have to be filled.”
