Gambling Commission reports “frictionless” risk check pilot success

The UK Gambling Commission recently revealed that an impressive 95% of financial risk assessments conducted during its affordability checks pilot have been classified as “frictionless.”

This pilot, initiated in August as part of the UK’s comprehensive gambling review white paper recommendations, introduced an additional layer of scrutiny for players whose net monthly deposits exceed £500. Although the proposal faced initial backlash in May, it has since gained traction.

Once players surpass this deposit threshold, operators are authorized to initiate checks utilizing credit reference agencies. A subsequent phase, set to commence in February 2025, will adjust the deposit threshold downward to £150. Currently, this pilot is confined to several of the UK’s leading operators.

Feedback from public consultations in 2023 indicated apprehensions regarding potential friction for players, alongside privacy concerns associated with player data sharing between operators. Furthermore, operators expressed worries about the financial implications of additional verification processes.

However, a recent update from the Gambling Commission on February 10th, highlighted by Helen Rhodes, Director of Major Policy Projects and Evaluation, reveals that out of approximately 530,000 assessments completed, about 95% were successfully processed as “frictionless” by credit reference agencies.

Of the remaining 5%, instances arose where operator data was either deemed “invalid” or mismatched. Specifically, formatting issues accounted for less than 1%, where invalid dates or duplications were presented. Just over 4% were classified as unmatched, indicating a lack of available information from the credit reference agencies.

The first phase of the trial has successfully concluded, demonstrating that operator-shared data was accurately matched by credit agencies, with around 300,000 accounts identified as belonging to high-spending gamblers.

Comparative Analysis and Insights

Rhodes emphasized that the findings are limited to the initial stage of the pilot outlined in the 2023 white paper. Projections from the report anticipated that 3% of customers would undergo checks, with an expectation that 80% of those would be classified as receiving a “frictionless” assessment.

“While direct comparisons cannot yet be made, the proportions observed in stage one of the pilot have exceeded these initial assumptions,” Rhodes noted, reflecting positive outcomes that could shape future gambling regulations.

Gambling Commission Advocates for Standardization

This pilot is structured in three phases and is scheduled to conclude in April 2025. The initial phase specifically evaluated the proportion of high-spending gamblers who could receive a “frictionless” financial risk assessment upon reaching the designated spending threshold. This phase replicated the data that operators would expect for an automated or live implementation of these measures.

The Gambling Commission regards this initial stage as a precursor to future developments, indicating that subsequent stages will incorporate “more recent data” for further assessment.

In its recommendations for enhancing the initiative, the Gambling Commission encourages operators to establish standardized definitions for what constitutes “permitted” data (e.g., duration of play). This standardization is intended to promote “commonality” and mitigate the “variations” encountered by some pilot participants, which were reported to be challenging to interpret.

Clarifying Objectives: Not Affordability Checks

The Commission has clarified that the pilot should not be misconstrued as a form of “affordability checks.” Instead, it represents a proposed mechanism to “identify high-spending remote gambling customers” who may be encountering financial difficulties, enabling them to receive appropriate assistance.

“We do not have any requirements for affordability checks and are not proposing any,” concluded Rhodes, reiterating the pilot’s focus on responsible gambling practices and consumer protection.