Controversial affordability checks must be 'minimally intrusive' committee of MPs tells government

Affordability checks should be "minimally intrusive" and punters' financial data must be properly protected, a group of MPs has told ministers.

A report by the cross-party Culture, Media and Sport Select Committee has also recommended there should be a pilot of any new system before affordability checks are fully implemented and that reform of the levy system should mitigate the impact on British racing caused by the proposals contained in the government's gambling white paper.

The report, which follows a year-long inquiry into the government's approach to gambling regulation, also calls on sports governing bodies to commit to cutting the volume of gambling adverts in stadiums, although it adds there should be a distinct approach for horseracing and greyhound racing given their long-standing relationships with betting.

Proposals for affordability checks, or financial risk checks as they are termed by government, involve two tiers of checks on bettors, the first for those who lose as little as £125 in 30 days or £500 in a year, the second being more detailed checks for those with net losses of £1,000 in 24 hours or £2,000 in 90 days.

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The report said the committee supported the principle of the checks but added the government "must ensure they are minimally intrusive, and that customers’ financial data are properly protected".

It also told both the government and Gambling Commission they must establish "what level of 'friction' involved in these checks is acceptable for most online gambling customers".

The MPs told the commission it should oversee a pilot of the new system of checks before it is fully implemented which should aim to "determine customers’ willingness to be subject to the checks, and whether they apply at suitable thresholds".

However, they also claimed the checks could only be fully effective when working across all the accounts a customer held, adding that in their responses to the report the government and Gambling Commission must "set out progress in the work to develop a single customer view mechanism".  

Some punters have voiced suspicions about the concept of the single customer view, fearing it would instead lead to more account restrictions and closures.

The government has said it is committed to a sustainable future for British racing and announced a review of the levy system in the white paper when it was published in April.

The levy yield for 2022-23 was £100 million but the report said the BHA's evidence to the inquiry had proposed "the new target for the levy to raise should be £133 million", either by extending it to include money bet on foreign racing, raising the rate, or switching to a turnover-based system from the current gross profits regime.

The committee said the government "must ensure that the new settlement arising from the review of the horserace betting levy mitigates the impact of the white paper’s reforms on the racing industry and ensuring British racing’s future".

Aside from further action on gambling advertising, the committee's conclusions also included calls for the Gambling Commission to improve its knowledge of the black market and for the "growing trend" of self-excluded customers being targeted by unlicensed operators to be addressed.

The report also said the new gambling ombudsman should include all disputes between gambling operators and customers, not just those relating to social responsibility failings as proposed in the white paper.

MP Dame Caroline Dinenage, chair of the Culture, Media and Sport Select Committee

The committee's chair Dame Caroline Dinenage MP said: “While gambling regulation should not overly impinge on the freedom to enjoy what is a problem-free pastime for the majority, more should be done to shield both children and people who have experienced problem gambling from what often seems like a bombardment of advertising branding at football and other sporting events.

"The government needs to go further than the proposals in the white paper and work with sports governing bodies on cutting the sheer volume of betting adverts people are being exposed to."

The Department for Culture, Media and Sport (DCMS) will respond to the report in due course.

A DCMS spokesperson said: "The gambling white paper outlines a balanced and proportionate package of measures, delivering greater protections for those at risk of experiencing harm, while having minimal impact on the freedoms of the large majority of punters."

The BHA responded to the publication of the report on Thursday. A statement on X read: "The BHA welcomes the publication of the committee's report on Gambling Regulation. 

"We provided evidence to the committee in July and it is encouraging to see a cross-party committee recognise the unique relationship between racing and betting, call for any affordability checks to be minimally intrusive and protective of consumer financial data, and use levy reform as a vehicle to mitigate the impact on racing of the reforms outlined in the white paper."

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