The Gambling Commission’s calls for calm over the impact of Financial Risk Assessments (FRAs) on the growth of the black market seem to be falling on deaf ears, as sources have emphasised to iGaming Expert that industry trepidation is only escalating.
Despite the best efforts of the GC, warnings continue to ring loudly over a lack of clarity when it comes to the implementation of FRAs.
An industry source told iGaming Expert that the move represents a ‘huge windfall’ for the illegal market, as concerns over an exodus to the black market refuse to go away for players who ‘believe they should be able to spend their money the way they want to’.
They added that the government is simply ‘doubling down’ on the stresses placed on the regulated sector by supporting FRAs after previously implementing a significant tax hike on the online gambling sector in November.
Anger from within the industry has been encapsulated by the Betting and Gaming Council’s Chief Executive Officer, Grainne Hurst, who this morning took to the airwaves to lament the decision.
Speaking on the Wake Up To Money Show on the BBC, Hurst accused the GC of pressing ahead with the implementation of FRAs without ‘addressing fundamental concerns’ identified during the Commission’s pilot study.
She questioned the consistency of the credit score agencies, which the BGC chief warned would lead to obstacles for the operators that are then forced to intervene with players, boosting the black market.
Hurst explained: “A credit reference agency will give a betting operator a green, amber or red score. The same customer could be a green with one credit reference agency, which means no risk, and that same customer could be red with a different agency, which obviously means that they are deemed as high risk.
“That then leads to difficulties for the operators because they then have to go and ask that customer for private personal documents. If we have to ask someone for their personal information, we have to be sure that the facts that sit behind that are right and the businesses have to ask those questions.”
The GC looked to remedy the fears around the leakage to the black market through a cautious and staged implementation of FRAs, commencing with the largest operators.
Players with net deposits of over £5,000 over a rolling 24-hour period will undergo an FRA by a credit reference agency, and throughout the implementation process, the GC has promised that the large majority of checks will be frictionless for players.
However, the wall of fear surrounding the FRAs is simply refusing to crumble, and as of right now, there is still significant reluctance for the industry to embrace the new approach to affordability.
Racing resistance
The British Horseracing Authority (BHA) has been equally scathing of the decision, as it believes fears raised over the impact on the racing industry have been ignored by key policymakers.
“Objective evidence from across the globe makes clear that this decision is one of self-harm on an immense scale that will have damaging economic and societal implications,” said the BHA in a statement.
“For this decision to be taken unilaterally by the Gambling Commission shows a clear abdication of duty by the Department for Culture, Media and Sport, which has failed to grip this process or properly consider the damaging consequences of the decision.”
In a briefing given to journalists ahead of the official announcement of the implementation of FRAs, Acting CEO of the Commission, Sarah Gardner, warned that there is an essential need for FRAs to ensure financially vulnerable players are not being missed.
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, these thresholds will be reduced to £750 in a rolling 24 hours or £2,000 in a rolling 90-day period.
There was a strong assurance from Gardner, as there has been throughout from the Commission, 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, such early signs of unrest within the industry will serve as a stark reminder to the GC of the long road ahead to bring key stakeholders on board, something that will be essential to ensure the smooth implementation of FRAs across the sector.
