Affordability checks: everything you need to know from the Gambling Commission's consultation

The government's white paper, published last April, proposed two tiers of affordability checks on bettors, one looking at 'financial vulnerability' and the other described as 'enhanced checks'. Following the publication of the Gambling Commission's consultation on these proposals, here's what we now know about how these checks will operate and what they will mean for bettors.

Financial vulnerability checks

What the white paper said: Light touch checks assessing publicly available information, such as bankruptcies and county court judgements, triggered at spend of £125 a month or £500 in a year.

What will be introduced: Vulnerability checks will be triggered at a slightly higher level of £150 a month, but will be initially introduced at £500 a month from August 30, before reducing to £150 on February 28. The checks will not consider details such as postcode or job title, as was previously proposed.

What it means for bettors and racing: For those without bankruptcies or other signs of 'financial vulnerability', these checks should take place seamlessly and many bookmakers already run similar background checks.

• Watch: Gambling minister Stuart Andrew on plans for affordability checks

Enhanced checks

What the white paper said: Enhanced checks, which would consider an individual's financial circumstances and ability to afford their betting, would be triggered at a net spend of £1,000 within 24 hours and £2,000 within 90 days. The checks would be "frictionless" and utilise credit reference data in most cases, but open banking or manual checks would be required in some instances.

What will be introduced: A pilot scheme will test the proposed method of conducting checks and the exact thresholds at which assessments will be conducted. The pilot will begin at the end of August and is expected to run for six months but could be extended until the end of April next year. In the interim period a new industry code on checks has been agreed, under which financial documents should not be required before net annual deposits of £25,000.

What it means for bettors and racing: Until the pilot scheme is completed and a permanent route forward outlined, uncertainty remains. Punters will not be impacted during the pilot, which is being used to examine the potential consumer impact of the enhanced checks before deciding whether they should be implemented in 2025. The new interim code, which will apply until that point, should provide some clarity, but unless an additional agreement on anti-money laundering checks, which trigger at lower levels of activity, is also agreed then significant numbers of bettors will continue to receive requests for source of funds documentation. As such, the impact of either interim checks or enhanced checks on bettors and racing remains unclear at this stage.

Read these next:

New interim affordability code introduces £25,000 threshold for submitting financial documents 

Gambling Commission confirms plans for six-month pilot of 'frictionless' affordability checks 

BHA chief Julie Harrington encouraged by interim gambling code but stresses concern over levy review uncertainty 

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