UK Bookmaker Affordability Checks

Recently, the forthcoming gambling review white paper and the affordability checks adopted by online sportsbooks have been dominant concerns for many enthusiasts in the racing and betting community.

Political upheaval in the UK's Conservative government, alongside leadership shifts and other Westminster issues, led to the gambling white paper being repeatedly postponed, even though it stems from a review initiated in 2019.

Prominent figures in racing such as trainers John Gosden and Nicky Henderson, along with Highclere Thoroughbred Racing's Harry Herbert, have vocally criticized the implementation of affordability checks, suggesting they might drive bettors to underground markets.

Cabinet Reshuffle

Early indications when assessing the broader implications of affordability checks reveal that ongoing changes in UK politics, including shifts in Prime Minister and cabinet roles, have obscured clear guidelines around what's expected in these checks.

One key role in the government hierarchy is the Parliamentary Under-Secretary for Tech and the Digital Economy—a junior government position, yet one tasked with overseeing gambling affairs.

Paul Scully's departure from his role—one he occupied since October 2022—marks the fourth change in this position since 2021, following predecessors Chris Philp and Damian Collins.

Funding Checks 

Scrutiny of pay slips and bank statements is ramping up, becoming commonplace for bettors trying to place regular wagers, with social media buzzing about these checks as safeguards against 'unprofitable business' or winning accounts.

While undeniably a sensitive subject, especially for families affected by gambling, there's a significant emphasis on ensuring that added restrictions don't excessively hinder personal choice, much like our autonomy with other vices like tobacco and alcohol.

Current phases of affordability checks might seem to impact only a minor segment of bettors; however, the broader industry, along with its stakeholders, should be exceptionally concerned, as survey data from 2022 reveals 70% of bettors resist sharing information for betting purposes.

The potential for these bettors to either pivot to illicit markets or halt betting entirely presents a valid concern, particularly when considering sports like horse racing, which is primarily funded through betting-driven prize money.

While UK black market betting figures remain elusive, studies indicate that illegal betting reaches over 50% in countries such as Norway and France.

Though France has adopted a more open approach in recent years, parallels are drawn to the historically rich and accessible betting landscape available to UK sports bettors, raising red flags about an expanding black market threat. 50 bookmakers plus betting exchanges Recent anecdotes from social media reveal instances where individuals are required to provide personal financial documents not only for themselves but for acquaintances—a clear indication of some firms stretching beyond necessary protocols.

While firms have always conducted customer due diligence, the bar for initiating affordability checks has notably decreased, showing that comprehensive checks now start at much lower betting levels.

Affordability Check Levels

A piece by Bill Barber in the Racing Post recently highlighted a reduction in affordability check triggers—now at £500 from a previous £950, and significantly lower from £2000 two years ago.

888 Holdings, now the parent company for William Hill A close examination of my accounts reveals a host of safeguarding options, such as deposit caps, temporary account freezes, and 'reality checks'—the latter imposing a time constraint on gambling activities.

When I began in 2005, 'self-exclusion' tools were already an option for bettors, providing an early form of self-regulation.

Arguably, the most concerning trend is how prevalent these affordability checks have become. While winning account restrictions aren't as widespread as sometimes claimed, affordability limits, set as low as £500, could potentially affect numerous casual bettors within a few months.

Despite chatter online positioning affordability checks as covert account sanctions, empathy exists for enterprises compelled to enforce these measures.

The UK Gambling Commission, overseeing the industry, receives mixed reviews yet continues to impose substantial fines on sportsbooks breaching responsible gambling regulations or failing to protect vulnerable patrons.

Gambling Commission Fines 

Nonetheless, there's no comprehensive guide outlining the expected procedures, nor a firm threshold established by the Commission to prevent firms from infringing the rules.

Penalties are substantial—with eight fines meeting or exceeding a million pounds since early 2022, the most significant being a £17 million fine against Entain for 'social responsibility and anti-money laundering shortcomings'.

With the ICE conference underway in London, it's timely to delve into the subject of gambling, marked by chief executive Andrew Rhodes’ pivotal speech addressing responsible gaming.

Rhodes highlighted a promising statistic—a decline by 8% in bettors losing upwards of £500 monthly with major betting operators—demonstrating the ongoing scrutiny and adjustments within the framework.

Andrew Rhodes At ICE 2023

Rhodes emphasized that despite progress, their casework identified persistent, unacceptable levels of betting embraced by some operators.

Citing drastic cases like a healthcare worker losing nearly £250,000 over three months and a new account holder incurring £70,000 in losses within ten hours showcases the need for balanced interventions.

Most readers would agree that staggering losses need addressing, yet it's critical to strike a harmonious balance concerning integrity checks and permissible losses.

The 'Setting the Evidence Agenda' forum initiated by the Gambling Commission aims to unite scholars and operators for industry improvements, although it bears resemblance to previously ineffective initiatives.

I envision that the 'Setting the Evidence Agenda' initiative will collect valuable insights from academics advocating for a safer gambling environment, alongside operators eager to enhance safety, profitability, and compliance.

This gathered data, one hopes, will then inform comprehensive industry-wide policy development and procedural standards.

Is there a necessity for standardized affordability check benchmarks?

For the Gambling Commission, it seems logical to expand upon its responsible gambling and affordability check guidelines, offering detailed directives.

Going Forward

An actionable list detailing steps for accounts fluctuating between wins and losses, alongside thresholds for implementing interventions.

Current practices appear erratic—some bettors face demands upon their first withdrawal attempt, whereas others are addressed only after surpassing unspecified checkpoints.

I'm not claiming expertise in the exact mandate; however, striving for a universal policy regarding affordability checks and responsible gambling practices seems prudent, setting clear criteria for seeking evidence of financial capacity.

Until these measures are in place, the UK gambling sector navigates uncertainty, with fears looming about punters diverting to unregulated avenues—something both the government and sectors like horse racing, which depend on levy collections, would prefer to avoid.

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