The first tests that should determine the viability of financial risk checks are set to begin on August 30th. On Tuesday, the Gambling Commission’s Director of Major Policy Projects and Evaluation, Helen Rhodes, gave an update on the trials in an official blog post, providing further insight into how the tests will be conducted and what their goals are.
Ms Rhodes explained that the pilot will last between 6 and 7 months and will involve the usage of real data. Assessments will be conducted in several stages, and each participating operator will analyse both historical and current client information.
The trial will test multiple aspects of the affordability checks, starting with confirmation on whether the system will be successful in identifying customers who are high spenders yet struggling financially. The UKGC is also seeking to examine how operators will be able to get an understanding of a client’s situation through limited information and tailor support based on the said data.
Ms Rhodes did stress, however, that the pilot will only involve data analysis and will not affect consumers. It was also clarified that should financial risk assessments come into effect, clients’ credit ratings would not change.
Other aspects of the trials will focus on the number of high-spending accounts that credit reference agencies will be able to provide information on, the agencies’ speed, whether the checks will be truly frictionless for 80% of clients subject to enhanced checks, and more. In addition, regulators will also confirm if credit reference data will actually be effective in identifying financial risk.
The Racing Industry’s Response
Ever since the plans to implement affordability checks were first announced, the idea has been subject to criticism from gambling industry players and representatives of British Horse Racing alike. The latest estimates suggest that the horse racing sector stands to suffer a revenue loss of £250 million over the course of five years as a consequence of the checks. Nevin Truesdale, CEO of the Jockey Club, even organised a petition against these plans, which eventually gained 100,000 signatures.
As reported by the Racing Post, the response to the UKGC’s latest update on the matter was somewhat mixed. A spokesperson for the British Horse Racing Authority (BHA) said that the authority welcomed the blog post but identified several factors that should be expanded upon. They asked for clarification on the spending thresholds that will be subject to testing, and said that the UKGC should provide further information on “how success will be measured and by what metric.” They also called for the UKGC to make the results of the pilot public.
Dan Waugh, leading analyst at Regulus Partners, was more critical of the blog post. He described it as “lacking in detail and transparency,” highlighted how the checks could have major negative consequences in the UK, and expressed disappointment that the pilot will not be more extensive.
- Author
Daniel Williams
