Punters could face affordability checks every six months under new proposals triggered by white paper

Punters could face having to undergo affordability checks as often as every six months under proposals put out to public consultation by the Gambling Commission on Wednesday and triggered by the UK government's white paper on the reform of gambling laws.

Under the proposals, any customer with a net loss of £1,000 over a rolling 24-hour period or £2,000 over 90 days could be forced to undergo an enhanced check into their finances as often as twice a year, with the trigger dropping to £500 and £1,000 for under 25s.

For the purposes of calculating a net loss, the Gambling Commission also proposes to ignore any money won more than seven days ago for those at the £1,000 threshold and 90 days ago at the £2,000 threshold. This would mean that anyone betting with the proceeds of a big win could still be forced to prove they could afford their gambling, despite being comfortably in profit.

The new details were revealed in a consultation document published by the Gambling Commission that forms part of the implementation of 'financial risk checks', the government's preferred term for controversial affordability checks and a key proposal in the much-delayed white paper.

The consultation seeks feedback from the public and industry stakeholders on proposals relating to the risk check process and is scheduled to run for 12 weeks.

It details for the first time the data bookmakers are expected to consult when undertaking the new-look affordability checks, with operators required to gather "personalised data relating to a customer's credit performance and income and expenditure data, such as current account turnover, or a risk assessment based on this data".

This would be provided by credit reference agencies where possible, but failing that would be gathered via open banking – whereby the customer consents to data being automatically shared by their bank with their bookmaker – or via the manual provision of sensitive financial documents, as occurs with existing affordability checks.

Light-touch checks – a first tier of checks triggered by a net loss of £125 in a 30-day period or £500 in a year – would make use of publicly available data and would be carried out no more than once a year.

Under these checks, bookmakers would be expected to evaluate financial vulnerability by considering things such as the average salary in their postcode and for their stated job title, along with checks of county court judgements and bankruptcy orders. The checks were described as being “frictionless” in the white paper and are estimated to impact 6.1 million account holders.

Stuart Andrew: gambling minister said the reforms would make laws “fit for the smartphone age”

Operators conducting checks would then be expected to determine whether any further action is required, with suggestions including enhanced monitoring, making contact with customers or suspending or closing accounts.

Affordability checks are the most controversial aspect of the government’s gambling review and have major implications for the funding of British racing. BHA chief executive Julie Harrington is among a number of key figures from the industry to have expressed concerns over the checks, which have already had a severe impact on the sport's funding.

In anticipation of new measures being introduced and acting under pressure from the Gambling Commission, bookmakers have been carrying out affordability checks on customers with increasing frequency in recent years, although it is understood only a relatively small minority of those confronted with requests for documentation have agreed to provide it. Racecourse group Arena Racing Company (Arc) has estimated the sport has lost £40 million a year as a result of punters refusing to submit to affordability checks.

The Gambling Commission is inviting submissions from the general public as well as the gambling industry, clinicians, academics and those with first-hand experience of harm.

Tim Miller, the Gambling Commission's executive director of research, said: "These consultations from the government and the Gambling Commission offer the opportunity for people to have their say on proposals aimed at empowering and protecting consumers. Their launch represents a key moment in turning the commitments in the white paper into reality."

The Betting and Gaming Council welcomed the consultation and a spokesman said: "We'll be working closely with members on these important consultations. We're committed to continuing to raise standards, protecting the vulnerable, while listening to punters and protecting jobs."

Gambling minister Stuart Andrew – the sixth minister to have responsibility for the white paper since the review was announced in 2020 – said the reforms would make laws "fit for the smartphone age".

Those wishing to respond to the Gambling Commission's consultation can do so here.

The Racing Post wants to hear from you. What has been your experience of affordability checks since the white paper was published at the end of April, and what do you think of the government's proposals? Have affordability checks affected your betting behaviour?

It's a chance for your voice to be heard. Email the Racing Post at editor@racingpost.com with the subject 'Affordability checks' to share your experiences, your thoughts about the government's proposals, and your contact details.

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