GCF: Affordability checks would unleash destruction on the industry

The Gambling Consumer Forum (GCF) has said that there have been “many accusations” that the Gambling Commission (GC) are failing to take the UK black market seriously enough as it looks to bring in affordability checks on players.

Writing on its website, the lobby group, which was set up as a direct result of the white paper into the Gambling Act 2005 review, claimed “most operators report that 80% [of players] fail to comply” with affordability checks.

The statement continued: “Clearly, there are two possibilities consumers are being faced with should they wish to place more than a token wager on their horse: turn to black market operators or forgo betting altogether. Both [options] are hugely damaging to the horseracing industry.”

The GCF said it is “mystified” that the GC views the rate of consumers playing on the black market to be very low but considers the problem gambling rate, which the forum says has been “stably low for many years”, a huge problem, one that is worth “unleashing destruction on the entire industry” by bringing in affordability checks with no evidence they will protect the people needed. 

The post referenced comments made by GC chief Andrew Rhodes during a recent speech at the International Association of Gambling Regulators in Botswana: “Whilst the illegal online market exists in Great Britain as it does elsewhere, it is not a significant concern and this position hasn’t fundamentally changed. However, that does not mean there is no illegal market or no risk.”

The lobby group said that there is a number of black market sites offering services to UK players, with many based in Curaçao. The GCF referenced research conducted into the black market by the Asian Racing Federation, which found that 12,000 sites were licensed in Curaçao, but this number might not be accurate as the regulator in Curaçao does not publish a list of licensed sites. 

The GCF made the point in its post that if players can trust a black-market brand and are in a position where they can’t access the regulated market, a “perfect storm ensues”. The lobby group pointed to Norway, where it says the Scandinavian nation has a 66% black-market rate due to the heavy-handed regulation in the country. 

The forum debated the claim made by those in favour of affordability checks that only a minority of people will turn to the black market, arguing that because of the way the affordability checks are designed, this would not be the case as operators will be forced to act like banks and not accept people who have poor credit ratings or payday loans, which it quotes industry sources say accounts for 5% of the player base. The GCF emphasised that it will be this group as well as vulnerable people who will fall “prey to black market operators”.

The GCF concluded its post stating that if the GC continues on its current course, the Treasury, the horseracing industry and those suffering from gambling-related harm will be those who “lose out” regarding affordability checks.