The industry is focusing on the frictionless financial check, despite the fact that the new GB Gambling Commission rules were published yesterday (May 1) by the GB Gambling Commission.
Yesterday, the Commission published a number of new market rules. The four main areas of the white paper on the Gambling Act Review were covered in the initial consultation. The four areas are: financial risk or affordability checks, direct marketing and online game design, as well as age verification at land-based gambling venues.
Rules will be implemented from August 20, 2024, and completed in February 2025.
A two-part proposal for affordability checks has been created. The pilot project for “frictionless affordability checks” will run for six months, and it will evaluate data that is already available.
Two rounds of checks will be conducted in a separate process called “light-touch” financial risk checking. First, the 30th of August 2024. The first will start on 30 August 2024. This will reduce to PS150 in February 2025.
Pilots won’t affect consumers
Tim Miller, Executive Director of the Commission at a briefing for the industry on the 1st May, confirmed that frictionless checks will not require players to provide any information.
He explained that the information was available without going to credit agencies. The pilot will not require consumers to submit any documentation.
Miller stated that data collected from the pilot will be analysed in stages.
Miller said that “we’ll use a phased-in approach to determine the information we will need during the pilot”. Miller continued by saying that the “operators involved in this pilot will examine historic data”. The pilot will also analyze past betting records as well as the current accounts.
He continued, “The pilot will have a relatively high level”. We are approaching the pilot in a completely open-minded manner.
Miller confirmed the Commission would invite smaller operators, such as small businesses and entrepreneurs to participate in the scheme. According to the Commission, “some of these operators could have a higher regulatory burden.”
Checks in two parts with light touch
The Commission does not want to “drag in” any accounts which do not reach the check thresholds. Miller emphasized that the pilot would be used to identify those customers who aren’t initially caught by frictionless processes.
The new rules for affordability checks have been generally well-received by the gambling industry, despite being part of a controversial proposition. Nigel Harvey is an AML Consultant at Betsmart Consulting. He says that operators would not have been surprised by the new rules. They would have known about the rules well before.
I don’t believe there will be any surprises coming from the Commission. “A lot of work has been done in the background by operators for many months,” he says.
Harvey feels that it’s necessary to conduct the check in two stages for the rules of light touch. The checks will then be conducted in two parts to make sure they are having the right impact.
He reiterates, “The GC informed us already that the two-stage format was going to be implemented and this is a very good approach.” Remember that this is a measure to protect the consumer from harm. It was important to get it right prior to the full rollout.
Harvey also emphasized the Commission’s choice to use net deposit, which could mitigate concerns about PS150 being too low.
As the GC repeatedly stated, there are many operators who already perform these checks. Many operators perform these checks before even a penny is spent. “We’ve seen it with clients as well.”
Commission: More Trust
Kevin Dale CEO of eGaming Monitor praised Commission’s vision based on data for pilot.
He said: “In terms of frictionless checks, the biggest issue, I like the idea of pilot data-driven tests with a proportionality assessment at the end.” Also, the fact that all checks are limited to data available publicly.”
He continues to express concern about the few players who will never experience frictionless check-in.
The line “nothing is implemented fully until it is frictionless” sounds great until you see the phrase ‘for the majority’, which still raises concerns.”
Harvey praised the way the Commission handled consultation and the rollout of the new rules.
He explains, “I think that there will be more trust placed in the Commission in 2024.” A few years back, a GC Consultation would have seemed pointless – ‘They already know what they’re going to do and the consultation just goes through the motions.
I think Mr Rhodes, and Mr Miller deserve credit for the communication they provided to all parties involved in this process. They will never be all happy. But I believe we’ve seen the best decisions made based on facts.
Casino functionality that requires age verification
New rules mandate stricter age verification requirements for operators on land. The new rules will require all land-based operators to perform age verification tests.
The code of good practices will be amended. Licence holders will be required to instruct staff members to verify a client’s age when they are younger than 25 years old, instead of the standard 21.
Harvey was shocked to discover the number of people who failed age verification tests. He added that it is absolutely essential for changes.
He said: “I was surprised that 45 percent of the age verification tests for categories A and B failed with no challenges to the tester.” I don’t believe that these stats can make anyone argue against the need for changes. Are they going far enough? “Well, I suppose time will tell. That’s why evaluation is important.”
The design of games will undergo five fundamental changes, including the elimination of autoplay, and a celebration for returns that are less than or equal to what was staked.
Dale said, “I have always opposed celebrating winnings that are less than or the same as stakes. This is a welcome development.” He also noted that games that encourage superstitious thinking should be avoided.
Dale said, “I have a problem with operators that encourage superstitious behavior – such as ‘hot and cold’ games or number combinations.” If they wanted to incorporate this into game design, they’d have to make any change to the lotteries as well.
