'We remain unconvinced' - HBF chief shares concerns after introduction of 'light touch' affordability checks

It is up to Britain's Gambling Commission and bookmaking industry to demonstrate that the introduction of so-called "light touch" financial vulnerability checks on Friday will bring a more uniform approach to interactions with customers.

That is the challenge posed to both the commission and the firms by Sean Trivass, the chair of the Horseracing Bettors Forum, who argued that the first wave of checks do not bring the certainty its proponents claim. 

Meanwhile, a leading legal expert on the gambling sector has questioned whether firms have been given enough guidance by the Gambling Commission as to how to react if either the checks or other indicators of potential gambling harm suggest more detailed interaction with customers. 

Bahar Alaeddini, a partner at the firm Harris Hagan specialising in multiple aspects of gambling law and compliance, said that while the introduction of background financial vulnerability checks on Friday was a "huge moment" in the passage of reform to the 2005 Gambling Act, the "timing and extent of intervention is not prescribed".

August 30 marked the date from which betting companies were mandated to run background checks on customers with a net deposit of £500 or more in a rolling 30-day period, a figure that will come down to £150 six months from now. 

Trivass said many racing punters remain unconvinced that the previous patchwork of activity across different bookmakers will change radically, and is concerned that account closures rather than just deposit limits are now on the table. 

Trivass said: "I understand affordability checks limiting how much we can 'afford' to spend. Whether I agree is another matter but I understand that. However, it's the first time I've seen reference to account closure, whereby I wouldn’t even be able to bet 50p. 

"I think there's every indication it will drive more people to the black market, while we remain unconvinced as to whether affordability checks provide any answer to problem gambling, despite hurting responsible customers and the horseracing industry as a whole."

Sean Trivass (left), chair of the HBF, meeting the then-sports minister Stuart Andrew

He added: "While we await the fallout from the new checks via social media, we are fully aware that the bookmakers will continue to ask for whatever documentation they see fit, and while they are allowed to continue to set their own rules, the Gambling Commission's suggestions will be ignored."

Alaeddini was confident the financial vulnerability checks (FVCs) would be uniformly applied, but argued that firms are still free to act as they see fit if a customer's finances cause concern. 

"Many operators already conduct FVCs, so their implementation provides a level playing field and much needed certainty for operators," said Alaeddini. "Consistent application will also minimise the risk of customers experiencing gambling harm.  

"One of the challenges is what operators do with the results of the FVCs. The clear expectation is that they are considered alongside other harm indicators, and that operators intervene when risk is identified.

"The timing and extent of such intervention is not prescribed, and therefore open to inconsistent application. Time will tell whether customers will view this as an improvement on [the previous regime of] affordability checks."

Friday also marked the start of the Gambling Commission's six-month pilot scheme to measure whether more intrusive financial risk checks for customers with higher levels of spend can be made frictionless, in line with the promise made by the previous UK government.

Trivass said of the pilot: "We would implore the Gambling Commission to be more open and transparent than they have in the past with whatever results and statistics the pilot generates. 

"Anything other than that won't be acceptable to the customers of the gambling industry and the wider British public."

Read more:

'Nothing positive can come out of this for racing' - Betfair founder Andrew Black issues stark warning as affordability checks come into play 

Affordability explainer: what is happening from Friday and how will it impact punters? 

Joe Saumarez Smith: 'If you overregulate, you drive your biggest customers to the black market' 

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