The UK Government’s Department for Culture, Media and Sport (DCMS) is demanding answers from the Gambling Commission (GC) on the Financial Risk Assessments (FRAs) update recently published.
In a letter to Sarah Gardner, Acting Chief Executive Officer of the GC, Dame Caroline Dinenage MP, Chair of the Culture, Media and Sport Committee, has outlined five areas that need to be addressed ahead of the staged implementation of FRAs. Baroness Twycross, Parliamentary Under-Secretary of State at the DCMS, was copied into the letter.
Dinenage has asked for clarity to assist the committee’s understanding of the policy and the impact it could have on UK players and the country’s gambling industry.
The questions asked by the government, to which they expect responses by 24 July, include:
- Will the Commission publish the full dataset, evidence base and methodology that informed its decision to proceed with Financial Risk Assessments and to determine the proposed thresholds?
- The Commission has stated that Financial Risk Assessments should reduce the need for document checks for most consumers. Can you provide an estimate of whether these changes will result in more or fewer recreational bettors being asked to provide documents or other financial information, compared with existing arrangements?
- Some stakeholders have told the Committee that engagement by the Gambling Commission throughout this process has been insufficient. Could you set out in detail the consultations, meetings, pilots and other engagement activities undertaken with operators, consumers, sporting bodies and other stakeholders during the development of these proposals?
- The Commission has announced that implementation groups will be established over the summer to support the next phase of delivery. Could you explain how decisions have been made regarding participation in those groups, including the criteria used to select invitees and the organisations that will be represented?
- Stakeholders have informed the Committee that there may be no representation from the racing industry within these implementation groups. If this is the case, could you explain the rationale for that decision and how the Commission intends to ensure that the views of the racing sector are taken into account during Implementation?
Dinenage stated: “It’s important that people at risk of gambling-related debt receive appropriate support. At the same time, any regulatory change must recognise the significant economic contribution made by the industry.
“The Gambling Commission needs to be clear about how the assessments will work and should work closely with bookmakers to ensure new obligations do not impose undue burdens on responsible businesses.”
Details and concerns
In a briefing to journalists ahead of the official FRAs implementation announcement, Gardner warned that there’s an essential need for FRAs to ensure financially vulnerable players are not being missed.
FRAs will be implemented by the largest operators during the first stage – £5,000 net deposits in a rolling 24-hour period. It is predicted that only 0.5% of customers will hit these thresholds.
Once fully implemented, FRAs will be applied to customers aged 25 years or older with net deposits exceeding £1,000 in a rolling 24-hour period or £3,000 over a rolling 90-day period; for those under 25, thresholds will be £750 over 24-hours or £2,000 over 90-days.
Gardner strongly assured that the vast majority of accounts won’t need to be checked, and of those that will be, a significant chunk will remain frictionless.
However, many within the industry believe more needs to be done.
Betting and Gaming Council’s CEO Grainne Hurst has accused the GC of pressing ahead with the implementation of FRAs without ‘addressing fundamental concerns’ identified during the Commission’s pilot study.
Hurst questioned the consistency of the credit score agencies, warning that obstacles could occur for operators that are forced to intervene with players, boosting the black market.
Meanwhile, the British Horseracing Authority has also criticised the decision, as it believes fears raised over the impact on the racing industry have been ignored by key policymakers.
