UK credit reference agencies will share customer data with gambling operators to test a financial risk pilot program. [Image: Shutterstock.com]

Potential credit checks for gamblers

The UK Gambling Commission (UKGC) will commence a pilot of financial risk assessments on August 30, which will involve gambling operators using data from credit reference agencies.

The UKGC published further technical details ahead of the pilot, which will be carried out by operators in the highest three relevant bands of license categories. Some smaller operators that have volunteered for the pilot will also take part.

The program will not affect customers’ credit ratings.

The pilot, which will last between six and seven months, is not a live test, meaning that if customers are flagged as facing potential financial risk, no action will be taken. The program will not affect customers’ credit ratings.

Pilot set to gather data

In the update, the UKGC’s Director of Major Policy Projects and Evaluation Helen Rhodes said: “We are testing how operators can be given limited information to understand how severe these financial difficulties might be, in order to take action to support the customer.”

“This would potentially allow operators in the future to look at other indicators of harm they have and tailor support to the customer ranging from reducing marketing, encouraging the use of deposit limits, right up to ceasing the customer relationship,” Rhodes added.

During the pilot, the threshold for checks will be set at losses of over £500 ($658) per month, although this is scheduled to be lowered to just £150 ($197) per month in 2025.

However, in an earlier blog post in May, the UKGC stated that the levels would “allow for sufficient data to be obtained to provide robust insight but not to overburden operators participating in the pilot. These threshold levels are not indicative of where thresholds would be set following the pilot.”

Frictionless checks requested

The move to collaborate with credit reference agencies comes after consultation with stakeholders, including gambling operators themselves.

some respondents did agree to the proposals, on the basis that they were ‘frictionless’”

After consulting on the proposals last year, the UKGC noted: “Some respondents did agree to the proposals, on the basis that they were ‘frictionless’ and did not impact people’s gambling journey or credit score.”

This is in contrast to requesting bank statements and further personal details, which some operators perform for certain customers at present.

Rhodes rounded off the update by stating: “If financial risk assessments are introduced in the future, we are committed to longer term evaluation. This would enable the Commission and the Department for Culture, Media and Sport jointly to consider if the policy is delivering the intended outcomes for consumers in a live environment. ”