Whether gamblers can afford the amounts that they are gambling is always of concern. The Betting and Gaming Council (BGC) has covered the issue in its new voluntary code for its members. It states that a risk assessment must be carried out for customers wanting to make a net deposit that exceeds £5,000 a month.
May 1 saw the BGC publish their Code of Customer Checks. There is already a UK Gambling Commission frictionless affordability check code in place.
Last year saw the UK Government release a White Paper on their intentions to reform the gambling industry. This is needed as the last Gambling Act came into force in 2005. The arrival of 24/7 online gambling and smartphones has seen that legislation become outdated.
The White Paper included several measures that will be introduced. September of this year will see the maximum stakes for online slot games be reduced. Those aged between 18 and 25 will see the maximum stake per spin reduced to £2. If aged 25 or over, the maximum stake will be £5.
Also on May 1, the UKGC announced major changes that have the intention of improving the safety and customer choices of gamblers. Its contents are consistent with those that were included in the White Paper.
This includes improving consumer choice when it comes to the marketing they receive from gambling companies and improving age verification checks on premises. It also includes reducing the intensity of some online games.
This will see autoplay banned, spin speeds reduced to under five seconds and other features that make players feel they have control over the game. The bonus codes and free spins that casinos advertise online are not yet touched by the legislation.
It’s a slow process and the changes will be implemented in four stages. The first will be in August with the following one in November. The final two will be in January and February of next year. By then of course we may well have a new party in charge of the country. How that might impact gambling legislation remains to be seen.
The UKGC has been listening to the views of consumers. A pilot of frictionless financial risk assessments will now be carried out. This aims at stopping customers from being able to spend large amounts of money very quickly without any checks being made by the bookmakers.
Consumers won’t be affected during this pilot period. This will allow the UKGC to refine the data-sharing processes before everything goes live.
The CEO of the UKGC is Andrew Rhodes. He believes that the introduction of any new rules is “based on evidence” and also takes into account the views of consumers and “other interested parties.”
After the talks that have been held over the measures, some changes have been made to their plans in order to ensure they “deliver meaningful protections.”
Mr Rhodes admits that there is a need to “get the balance right” with the new checks. They must protect people from gambling harm but also respect “the freedom of adults” who gamble responsibly to continue to do so.
The pilot is expected to take a period of six months. After that, the UKGC will make a decision over whether to implement the rules permanently.
The BGC’s new code has been welcomed by the Gambling Commission. There is a concern over younger players experiencing gambling harm. Therefore, those aged between 18 and 24 will see a risk assessment take place if their monthly net deposit is £2,500.
There are several approaches outlined in the code. Any risk assessment will be required to include at least one of them. Of these approaches, one would see either a two-way live chat or phone call with the customer. This would include the customer’s income being declared.
Another would see an analysis of the customer’s affordability take place. Information about their annual salary and job title would need to be given. Companies House filings and previous winnings could be reviewed as well as information that has been supplied to the betting company by their customer.
Those customers who make a net deposit of at least £25,000 in a rolling 12-month period would also have enhanced consideration checks carried out. When this takes place, operators can examine the amounts won by customers and their net position.
Another area of concern is anti-money laundering. The BGC and UKGC are working together on producing a new code to address what have been labeled “intrusive document checks.”
The BGC and the Commission are also working on a new anti-money laundering code to address what it dubs “intrusive document checks”.
Michael Dugher is the CEO and also acting chair of the BGC. He believes the code makes progress into omitting document checks for those who are contacted.
Mr Dugher said that it will “significantly increase the consistency of safer gambling standards” but without what he calls “intrusive document checks.” The fear is that such checks could drive gamblers onto the unlicensed black market.
