UKGC Praises the Results of the Financial Risk Assessments Trial

The UKGC recently trialed a form of financial risk assessments (FRAs), also referred to as “affordability checks” by some (although the regulator has rejected that comparison). The measure, which was outlined in the Gambling Act white paper, was a divisive one, with many claiming that it could alienate players or infringe on their privacy.

Because of that, the UKGC vowed to run its assessments in a frictionless manner. Now, speaking at the Clariton Payment Providers Summit, Ian Angus, director of policy at the UKGC, has revealed details about the FRA pilot program.

FRAs Are Not Affordability Checks

After discussing a variety of topics, including compliance, innovation, economic challenges, and the black market, Angus also addressed the FRA progress, acknowledging that FRAs have been attracting plenty of attention and coverage. However, he regretted that many of these materials seem to suggest a lack of understanding of the matter at hand.

Angus emphasized that financial risk assessments are not merely affordability checks by another name since they don’t attempt to assess what players can afford to gamble. Instead, they are what Angus called a “frictionless and consistent method for gambling firms to check whether a consumer is in financial difficulties.”

Angus also pointed out that the risk assessments have the government’s support and can be truly frictionless if implemented correctly.

Angus Said the Pilot Version of the FRAs Delivered Strong Results

Angus continued by revealing some of the UKGC’s findings, insisting that the pilot version of the FRAs shows that the measure can truly work.

He stated that data so far shows that less than 3% of active customers would ever prompt an operator to intervene under the current proposals. The pilot showed that of these 3%, a staggering 97% would successfully receive a frictionless assessment process. For context, previous estimates put this figure at only 80%.

Angus added that only a very small proportion of active accounts would require an assessment and be unable to do so in a frictionless manner. The pilot puts this figure at roughly 0.1%, marking another improvement from the white paper estimates. To put this into perspective, this means that only 1 in 1,000 accounts would be unable to receive an assessment in a frictionless way.

Angus concluded that these are “good outcomes.” However, he emphasized that this doesn’t mean that the UKGC is dead-set on implementing FRAs and noted that the matter would be ultimately decided by the UKGC board. If it decides to implement FRAs, the UKGC will work closely with the government, operators, and credit reference agencies on the best way to implement them.