97% of risk checks now frictionless, says Gambling Commission

Commission Reports Increased Frictionless Rate in Bettor Financial Assessments

On Wednesday, the UK Gambling Commission announced significant findings from its latest pilot phase focused on assessing financial risks among bettors, revealing that an impressive 97% of evaluations were conducted frictionlessly. This increase follows a successful first phase of assessments released last August, which was among the pivotal recommendations detailed in the UK’s recent gambling review white paper.

Financial risk checks are initiated when a bettor’s net monthly deposits exceed £500 ($671.29). Operators have the capability to employ credit reference agencies to streamline these checks effectively.

In the inaugural phase of this pilot, the Gambling Commission recorded that 95% of assessments were executed without friction. Now, in the second phase—covering approximately 1.7 million assessments across around 860,000 accounts—the frictionless rate has risen to 97%. This benchmark surpasses the 80% frictionless rate projected in the 2023 white paper, alleviating concerns surrounding potential friction and the imperative of safeguarding player privacy.

The Commission attributes this upward trend in frictionless assessments to the use of more current data sourced from operators, which enhances the accuracy and efficiency of the evaluations.

According to Helen Rhodes, the Commission’s Director of Major Policy Projects, “These additional insights from our pilot have been instrumental in clarifying how assessments can be further optimized for a frictionless experience. As we progress with our staged pilot approach, we aim to refine data consistency across credit reference agencies and support operators in identifying and assisting customers facing potential financial difficulties.”

Analysis of Financial Risk Checks

The Gambling Commission is deepening its understanding of the financial risk profiles of players flagged in this pilot. Notably, two of the three credit reference agencies provided data indicating that individuals who met the thresholds for pilot assessments were significantly more likely to present direct risk flags. These flags facilitate operators receiving necessary data to mitigate financial risks.

Data variations across different operators indicate that customers triggering assessments were found to be two to four times more likely to have debt management plans in place. They were also noted to be two to five times more likely to have recorded a default within the past twelve months compared to the broader UK population.

Stage Three of the Pilot Underway

The Gambling Commission has announced that stage three of its pilot is currently in the reporting phase. The Commission’s intent is to utilize this phase and subsequent analyses to further refine how financial checks can be tailored to effectively target individuals at the highest risk of financial distress.

“Our next steps will focus on reducing any inconsistencies present between credit reference agencies and providing targeted support for operators in future implementations,” the Commission stated.

Data collection for stage three concluded on April 30, and the Commission is now poised to enter into a detailed analysis phase that will extend into the summer months, paving the way for improved practices within the gambling industry.