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

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.

Key Objectives of the Interim Code

• Streamline affordability checks and establish higher thresholds compared to forthcoming government proposals.

• Provide a more uniform and less intrusive approach across the industry.

• Reduce the administrative burden for both players and operators.

Thresholds and Risk Assessments

• Financial proof will be required only if net deposits exceed £25,000 (US$32,111) within a rolling 12-month period.

• Risk assessments will be conducted for individuals depositing more than £5,000 (US$6,242) in a single rolling month.

• These measures replace varying and inconsistent checks previously used by different operators.

Broader Industry and Government Perspectives

• The racing industry has supported reforms due to the negative impact of stringent checks on online betting turnover.

• Culture Secretary Lucy Frazer praised the initiative for balancing personal freedom with public protection.

• The government is exploring a frictionless system for financial risk checks to identify and support vulnerable individuals without inconveniencing players.

Concerns remain regarding anti-money laundering (AML) checks, as document requests are still required at lower deposit levels. Efforts are ongoing to develop a separate AML-focused code to enhance consistency and reduce document dependency.

Andrew Rhodes, the UKGC’s Chief Executive, emphasized the voluntary nature of the code and its role in promoting transparency and consistency. Operators are encouraged to uphold minimum standards while proactively supporting at-risk customers.

The interim code marks a significant step toward safer gambling practices in the UK. While not a comprehensive solution, it reflects strong collaboration among regulators, operators, and government bodies. As the gambling landscape evolves, continued dialogue and adaptive measures will be essential to maintaining a fair and responsible industry for all.