Data inconsistences and ‘self-harm on an immense scale’, industry reacts to financial risk assessment rollout

The industry has hit back today at the Gambling Commission’s plans to introduce Financial Risk Assessments (FRAs) for a select group of “higher-spending” online gamblers, via a phased rollout.

Responding to the Commission’s update, industry stakeholders, including legal experts and politicians, emphasised data inconsistencies in the FRA process, which remain unsolved.

On Tuesday, the regulator revealed its plans for FRAs to be triggered for those surpassing a £5,000 net deposit in a rolling 24-hour period. The checks will be carried out by credit reference agencies (CRAs) – the Commission stated they are designed to be “frictionless” and document-free, and affirming that the assessments will not impact customers’ credit scores.

Useful data falls short of practicality

Although Wiggin Partner’s Chris Elliot described the phased rollout structure as “pragmatic and sensible”, the lawyer has questioned the Commission’s readiness to address data inconsistencies exposed during FRA pilot testing. In a blog analysing the regulator’s statement, Elliott emphasised that differences in credit reference agency outputs remain unresolved, despite the Commission acknowledging the issue last year .

Partner at Northridge Law Melanie Ellis expressed the same frustrations. “Questions remain about the reliability of credit reference agency data, with the issue of different agencies returning different results for the same customer apparently still unresolved,” she tells iGB directly.

Wiggin’s Elliott also called for further evidence on the Commission’s claims on the measure reducing gross gambling yield (GGY) for operators.

“The industry is understandably concerned that the reduction in GGY will in practice come not just from those who are in financial distress, but from those customers who simply do not wish to submit to the provision of financial documents or open banking interrogation and who will instead reduce their spend or move elsewhere,” he said.

“The Commission’s announcement does nothing to assuage that concern.”

Elliott urged the regulator to issue clear guidance regarding proportionate operator actions. He questioned “whether Commission officials conducting compliance assessments will, in examining adherence to existing customer interaction requirements, effectively impose FRA-adjacent expectations through the back door.”

Ellis acknowledges that the Gambling Commission’s promise not to take enforcement action against operators who fail to comply in the initial stages shows it “appeared to have recognised operators’ concerns”.

“We must await the further guidance promised by the Commission, but the indications are that a lot will be left to the operator’s discretion,” she adds.

British Horseracing Authority: Excessive intrusion and economic risks

Others have outright shut down the introduction of FRAs, including the British Horseracing Authority, which previously warned financial risk assessments would have a huge impact on the sector.

BHA CEO Brant Dunshea yesterday described the introduction of FRAs as “self-harm on an immense scale”, warning of potentially severe financial consequences for British racing and the wider UK economy.

He described the checks as “severe” and likely to impose “unwarranted levels of intrusion” on racing bettors.

Dunshea expressed concern that, contrary to the Commission’s stance that the checks would be frictionless, the pilot actually revealed practical difficulties. He believes the measure will instead drive customers to the illegal market.

Dunshea urged the Commission to tackle identified inconsistencies in CRA outputs and provide clear operator guidance to avoid overly cautious implementation.

FRAs a ‘dereliction of duty’ says shadow gambling minister

In a video shared on Linkedin , the Conservative party’s shadow gambling minister, Louie French MP, described FRAs as a “dereliction of duty”. He emphasised “clear and obvious reasons not to (implement the FRAs)”, highlighting a variety