The UK Gambling Commission (UKGC) has confirmed that financial risk assessments will be introduced in stages, marking a major change in its regulatory approach after months of debate about proposed affordability checks.

During a meeting announcing the decision and attended by ReadWrite, Acting Chief Executive Sarah Gardner said the regulator wants to identify customers who are spending heavily while facing serious financial problems, without creating the level of disruption that has been associated with existing affordability processes.

“We found evidence that some high-spending gambling customers are experiencing current financial difficulties and they’re not being identified via means that are already open to gambling operators,” Gardner said. “Those customers are between two and four times more likely to have a debt management plan and between two and five times more likely to have had a default in the previous 12 months than comparable consumers.”

The announcement accompanied publication of the commission’s policy confirming that financial risk assessments will replace the earlier affordability check proposal. Instead of judging whether someone can afford to gamble, the new framework is intended to detect signs of significant financial distress, including defaults, arrears and debt management plans.

“The vast majority of gambling customers will never ever require a financial risk assessment.” – Sarah Gardner, UK Gambling Commission Acting CEO

Commission officials repeatedly highlighted that distinction throughout the briefing.

“I do want to pick up on the terminology,” Finance Director Helen Gibson told reporters. “These really are not affordability checks. They do not take account of affordability. They are identifying customers who are in financial difficulties… We want to reassure customers that we’re not accessing deep levels of information about them.”

Highest thresholds limit the initial rollout

One of the biggest changes is the decision to begin with much higher spending thresholds than many in the industry had expected.

Rather than introducing the lower levels discussed during the Gambling Act Review co...