The UK Gambling Commission (UKGC) is set to launch a pilot program on August 30 that will involve gambling operators using data from credit reference agencies to conduct financial risk assessments on customers. The program aims to test how operators can use limited information to understand the severity of potential financial difficulties faced by customers and take appropriate action to support them.
The pilot will last between six and seven months and will involve operators in the highest three relevant bands of license categories, as well as some smaller operators that have volunteered to participate. It is important to note that the program will not affect customers’ credit ratings, and if customers are flagged as facing potential financial risk, no immediate action will be taken.
During the pilot, the threshold for checks will be set at losses of over £500 per month, with plans to lower this threshold to £150 per month in 2025. The UKGC has emphasized that these levels are not indicative of where thresholds would be set following the pilot, but are designed to provide sufficient data for analysis without overburdening participating operators.
The decision to collaborate with credit reference agencies follows consultation with stakeholders, including gambling operators themselves. Some respondents agreed to the proposals on the basis that they would be “frictionless” and not impact customers’ gambling experience or credit scores. This approach differs from current practices where operators may request bank statements and additional personal details from certain customers.
In a statement, Helen Rhodes, the UKGC’s Director of Major Policy Projects and Evaluation, highlighted the potential benefits of financial risk assessments for operators in identifying indicators of harm and tailoring support for customers, such as reducing marketing, encouraging the use of deposit limits, or ceasing the customer relationship if necessary. The UKGC is committed to long-term evaluation of the program to ensure that it delivers the intended outcomes for consumers in a live environment.
Overall, the pilot program aims to gather data on how financial risk assessments can be effectively implemented by gambling operators to support customers facing potential financial difficulties. By working with credit reference agencies and setting appropriate thresholds for checks, the UKGC seeks to enhance consumer protection and promote responsible gambling practices in the UK.