UK trade bodies warn over impact of financial risk checks

UK gambling trade bodies are urging regulators to reconsider incoming financial risk assessments (FRAs). They warn the measures could unintentionally push players away from licensed operators. The the checks are designed to strengthen consumer protection, but industry figures argue they risk adding friction. This comes at a time when the market is already adjusting to wider regulatory and tax changes.

Pressure builds over financial risk assessments

Trade bodies including the Betting and Gaming Council (BGC) and the British Horseracing Authority (BHA) have voiced concerns over the next phase of affordability checks.

The proposed FRAs form part of the Gambling Act Review White Paper. In total, the UK Gambling Commission is working through 63 recommendations. All of these are aimed at improving safety and sustainability across the sector.

Under current rules, lighter financial vulnerability checks are triggered when a player reaches £150 in net deposits within 30 days. The upcoming system goes further.

New thresholds would see automated assessments carried out when customers spend £1,000 within 24 hours or £2,000 over a three-month period. The intention is to identify financial risk without requiring documents like bank statements.

Concerns over friction and data accuracy

Industry stakeholders say the system may not work as smoothly as intended. Early pilot testing revealed inconsistencies between credit reference agencies. The same individual received different financial assessments.

This raises the risk that operators may still need to request additional documentation. That would undermine the goal of a “frictionless” process.

In a statement, BGC CEO Grainne Hurst warned the checks could duplicate existing protections while adding unnecessary barriers for customers.

She argued that increased friction may drive players towards unregulated sites, where safeguards are weaker.

"This shocking report exposes the unnerving true scale of the growing, unsafe, unregulated gambling black market. From online gaming, to betting on sports like horseracing, millions of customers are being driven into the arms of pernicious black market operators. These people don’t care about player safety, don’t want to pay their fair share to support sport and don’t pay a penny in tax." - Grainne Hurst

Racing sector warns of wider economic impact

The BHA has echoed those concerns. It highlighted potential consequences for the racing industry.

CEO Brant Dunshea said regulated betting plays a key role in keeping gambling safe. He warned that overly restrictive checks could reduce participation in the legal market.

That, in turn, could lead to lower tax receipts and job losses across the sector. The racing body has urged policymakers to reconsider both the design and timing of the measures.

The issue is particularly sensitive given regulatory changes going on. A new gambling tax framework is set to come into effect on 1 April. This will add further pressure on operators and affiliated industries.

Regulator response and next steps

The UK Gambling Commission has said it is continuing to refine the approach. The focus is on reducing friction for consumers.

However, uncertainty remains over whether the concerns raised during pilot testing have been fully resolved. With FRAs potentially being approved as early as May, industry groups are calling for a pause and review.

The debate shows how much of a wider balancing act it is. Regulators are aiming to strengthen player protection. Operators and stakeholders stress the need to keep the regulated market competitive.

How that balance is struck in the coming months could change the direction of the UK gambling sector for years to come.