he UK Gambling Commission has shared another update on its ongoing pilot program focused on financial risk assessments in the remote gambling sector. This latest phase highlights how the process is evolving and what steps are coming next as part of the Commission’s broader plan to reduce gambling-related financial harm.
Good to know
- Financial risk assessments aim to flag users in financial distress without impacting credit scores.
- Stage two of the pilot saw 97% of assessments completed in a frictionless manner.
- The next phase will dig deeper into data accuracy and operator support systems.
The Commission’s update, led by Helen Rhodes, Director of Major Policy Projects, focuses on the second stage of the pilot. It reveals that users who triggered the risk thresholds were up to five times more likely to have had a financial default in the last year. They were also between two and four times more likely to be enrolled in a debt management plan compared to those below the threshold.
These findings have strengthened the UKGC’s confidence in the tool. Financial risk checks, as described by the Commission, are meant to help identify high-spending customers who may be financially vulnerable. They are distinct from what some refer to as “affordability checks,” which are not being proposed.
The UKGC clarified that financial risk assessments would not affect an individual’s credit rating, even if adopted more broadly in the future. Instead, they are designed to be as seamless and non-intrusive as possible.
Progress and Next Steps
In terms of operational progress, stage one saw 95% of checks processed without user friction. That figure increased to 97% in stage two, with the total number of checks jumping from 860,000 to 1.7 million across three credit reference agencies.
The pilot is now entering its third phase, which will involve further data analysis through the summer. Once that wraps up, the Commission will move on to stage four.
The UKGC continues to partner with NatCen for its evaluation and analysis during and after the pilot. Going forward, the Commission plans to focus more on the consistency of data between credit agencies and how operators can better recognize the level of financial distress and offer support to affected customers.
Helen Rhodes summed it up by saying, “These further findings from the pilot have helped us understand the extent that assessments could be conducted in a frictionless manner.” She added that the next steps will focus on improving data accuracy and support systems for gambling operators.
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