Gambling Commission proposes ‘due diligence checks’ before new customers are allowed to gamble
Verification measures to be consulted on as part of a host of new consumer protection plans outlined by the regulator
The Gambling Commission could require all operators to introduce a “customer due diligence” phase before letting new customers gamble, the regulator announced today.
The process would mean operators needed to verify their players through a series of checks on areas such as affordability and source of funds.
The UK regulator said the new measures were needed as “many failings arise because operators do not know enough about their customers at an early enough stage of their relationship”.
“These include cases where problem gamblers or criminals have gambled significant sums that were well in excess of the amounts their profile would have suggested were reasonable.
“In addition, we are concerned that operators may be treating their customers unfairly by requesting additional information only at the point where the customer has requested a withdrawal.”
https://twitter.com/gamblinglamb/status/975653209527214080
The chairman of Bede Gaming, Joe Saumarez Smith, admitted the change was “not good news for the sector,” but added: “I think that with about 85% of customers they are pre-checked in terms of knowing who they are through checking electoral records, Experian credit checks etc.
“The setting of limits and checking for affordability would add to the burden, but for the average £20 to £50 bettor would you need to run those checks initially? It would only really be for the customers who deposited £200+ initially, which generally speaking is a tiny number of people (although obviously high value).”
The regulator will open a consultation on the measures, along with a host of other changes including a new rule requiring age verification before players can use free-to-play games.
The Commission also said it would launch new research into in-game features that may promote “negative gambling behaviour” and investigate betting on credit.
Penalties on dormant accounts and withdrawal of funds will also be reviewed more closely, in line with similar work being done by the Competition and Markets Authority.
The actions were announced in the Commission’s advice to the Government for its review of gaming machines and social responsibility measures.
The Commission recommended a cut in FOBT stakes to £2 for slots and a maximum of £30 for non-slot games, along with other protective measures.
“At the heart of the advice is an aim to reduce the risks that consumers, especially those that are vulnerable, face from gambling,” the regulator said.
This morning will be speaking about our advice to Gov on the gambling review. A stake cut alone does not go far enough to address the risks of harm so in addition we are proposing a wider package of measures to make gambling safer
— Tim Miller (@TimMillerTweets) March 19, 2018
The regulator’s review also said the tone, content and quantity of gambling advertising required “close scrutiny” but that the available evidence was not clear on the matter.
“It does not indicate whether there is a need to change existing rules, but it is limited and we are working with RGSB and GambleAware to build on it.”