UK Introduces Voluntary ‘Affordability Code’ Ahead of Mandatory Affordability Checks

Article by : Erik Gibbs May 2, 2024

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In the gambling industry, regulatory measures play a crucial role in safeguarding individuals from potential harm while ensuring a fair and transparent environment for players. In the UK, a new interim code, aptly named the ‘Code on Customer Checks,’ is emerging as a promising alternative to mandatory affordability checks.

This code, jointly developed by the Betting and Gaming Council (BGC) and the UK Gambling Commission (UKGC) with the support of government ministers, aims to address the cumbersome process of submitting personal financial documents for betting affordability assessments.

The primary objective of the interim code is clear: to streamline affordability checks and establish higher thresholds compared to forthcoming government proposals. This promises a more uniform and less intrusive approach across the industry.

Under this new code, individuals will only be required to provide financial proof of their gambling affordability if their net deposits exceed £25,000 (US$32,111) within a rolling 12-month period.

Additionally, bookmakers will conduct risk assessments for individuals seeking to deposit more than £5,000 (US$6,242) within a single rolling month, marking a departure from the current practice of varying and inconsistent checks by different operators.

The need for such reforms stems from a recognition of the adverse impact stringent checks have on British racing’s online betting turnover. The racing industry leadership has been vocal in advocating for reforms, contributing significantly to the groundwork for the interim code.

While hailed as a significant step forward, the interim code is not without its limitations.

Concerns persist regarding anti-money laundering (AML) checks, which necessitate document requests even at lower deposit levels. Efforts are underway to develop a new code specifically focusing on AML checks, aiming to enhance consistency and reduce reliance on document submissions.

Culture Secretary Lucy Frazer has praised the interim code as a major advancement in safeguarding individuals at risk of gambling-related harm. She remarked on the government’s commitment to listening to various stakeholders in formulating policies that strike a balance between personal freedom and public protection.

In parallel with the interim code, the government is exploring the implementation of a frictionless system for financial risk checks. Proposed in a white paper, this system aims to streamline the process of identifying and assisting individuals vulnerable to gambling harm.

However, its introduction hinges on assurances that it will not unduly inconvenience bettors and gamblers, highlighting the delicate balance between regulatory efficacy and customer convenience.

Andrew Rhodes, the chief executive of the UKGC, underscores the voluntary nature of the interim code and its role in promoting a consistent and transparent approach to customer interactions.

While operators are expected to adhere to minimum standards, they must also fulfill broader obligations in supporting customers at risk of harm through proactive monitoring and intervention measures.

The interim code represents a significant step towards enhancing safer gambling practices in the UK. While not a comprehensive solution, it reflects collaborative efforts among industry stakeholders and government bodies to strike a balance between regulatory requirements and customer welfare. As the gambling landscape continues to evolve, ongoing dialogue and adaptive measures will be essential in ensuring a fair and responsible industry for all involved.