UK Gambling Commission to Roll Out Financial Risk Assessments in Phases

The UK Gambling Commission will introduce Financial Risk Assessments (FRAs) through a phased implementation process designed to help gambling operators identify high-spending customers experiencing financial hardship. The regulator says the new approach will improve consumer protection while making financial risk checks less intrusive for the vast majority of players.

Phased rollout to focus first on the highest spenders

Following consultations with the industry, consumer groups and credit reference agencies, the Commission confirmed that Financial Risk Assessments will initially apply only to customers with exceptionally high levels of gambling expenditure.

During the first stage, the largest licensed operators will assess customers who record net deposits of £5,000 or more within a rolling 24-hour period, a spending pattern that affects fewer than 0.5% of gambling customers.

The regulator said the implementation timetable will be finalized after further discussions with stakeholders through dedicated implementation groups established this summer.

Most customers will never require an assessment

According to the Commission, the vast majority of gamblers will never undergo a Financial Risk Assessment. Even customers who place regular bets or spend several hundred pounds are unlikely to reach the established thresholds.

Assessments will be conducted electronically through Credit Reference Agencies without requiring customers to submit documents, and the process will not affect their credit score.

Pilot results showed that 97% of customers above the spending thresholds could be assessed automatically, significantly exceeding the 80% estimate outlined in the UK's 2023 Gambling White Paper. Fewer than 1 in every 1,000 accounts would require alternative verification methods, such as open banking or supporting documentation.

Long-term thresholds already defined

Once the framework is fully implemented, Financial Risk Assessments will apply to customers aged 25 and over who exceed £1,000 in net deposits within a rolling 24-hour period or £3,000 over 90 days.

For customers under 25, the thresholds will be lower at £750 over 24 hours or £2,000 over 90 days, reflecting concerns about greater vulnerability among younger adults.

The Commission also confirmed that, during the initial rollout, operators will not face enforcement action solely for failing to act on the outcome of a Financial Risk Assessment, although all existing licence conditions will remain fully enforceable.

Sarah Gardner: "We are confident that our approach will enable support"

Sarah Gardner, Acting Chief Executive of the Gambling Commission, said:

"We are confident that our approach, using high-quality data, will enable support for high-spending customers in financial difficulties, while reducing friction for customers who are not in financial difficulties by removing the need for unnecessary and unpopular document checks to understand financial risk."

She added:

"We have listened to feedback throughout the pilot process which has led to us deciding to carefully proceed. We will work with key partners to make sure that they are implemented in the most effective way for consumers and operators."

Baroness Twycross: "The right balance must be struck"

Baroness Twycross, UK Gambling Minister, welcomed the Commission's decision to introduce the new system gradually.

"I welcome the Gambling Commission's decision to implement financial risk assessments in a careful, phased way. Attention must now turn to successful implementation, so that financial risk assessments work for consumers, gambling operators and the wider ecosystem."

She concluded:

"The right balance must be struck so that assessments protect those in financial difficulties from the risk of gambling-related harm but do not create unnecessary burdens for the industry or consumers."