UKGC expands financial risk checks testing, but final verdict still pending
The UKs pilot of financial risk checks is gaining speed, but not everyones convinced its the smooth ride the regulator claims.
The : financial risk checks are not affordability checks. They offer a lighter, faster experience and, according to the pilot data, deliver frictionless checks for over 97 percent of bettors. The flagship proposal from the 2023 Gambling White Paper may be nearing rollout, but the industry isnt relaxing just yet.
At stake is more than just user experience. The way these checks are rolled out may reshape operator compliance, impact customer loyalty, and alter the balance between protecting vulnerable players and pushing casual bettors offshore.
How the financial risk checks pilot works in practice
Since September 2024, the UKGC has been running a four-phase pilot of financial risk checks. These checks, triggered when a customers net deposits exceed ?500 (due to drop to ?150 in early 2025), pull in data from credit reference agencies to spot signs of financial stress like recent defaults or debt management plans.
The regulator stresses the process is frictionless. No credit score hits. No intrusive document uploads and no postcode or job title fields. Instead, the system flags risk based on publicly available financial indicators. In most cases, the customer never even knows a check occurred.
In Stage Two of the pilot, over 1.7 million financial risk checks were conducted across 860,000 accounts. Of these, 97 percent were processed without friction, a rise from 95 percent in Stage One and well above the White Papers original 80 percent target.
The UKGC now says only 0.1 percent of all accounts would require a non-frictionless check, typically involving a manual review or follow-up. Thats roughly one in every thousand customers. Its a simulation, not the real thing for now. Three percent of accounts sit in a grey zone: thin files, where little is known, and no risk is assumed. Another three percent drifted unmatched, down from five, as operators fine-tuned their feeds. The real measure, though, may lie with NatCen, the outside force evaluating whether this system is a safety net or just another digital blindfold.
Behind the curtain: data gaps, risk flags, and real-world hurdles
The figures may impress, but Stage Three has revealed a key flaw: credit reference agencies dont always sing from the same hymn sheet. Operators reported receiving different levels of detail depending on which agency returned the report. Disparities in reporting across agencies cause friction, disrupt automation, and force customer support teams to second-guess every response.
Helen Rhodes, Director of Major Policy Projects at the Commission, confirmed the next phase will focus on data consistency across agencies and supporting operators to identify the severity of financial difficulties and how to support customers. Taken alongside the Commissions lottery clarification, the push for consistency hints at a regulator tightening its grip, and doing so smartly.
The risk thresholds appear to hold up statistically. Customers who met the financial risk check criteria were two to five times more likely to have a recent default or be on a debt management plan than those who didnt. However, the pilot is also grappling with edge cases like thin files, where a customers credit history is too sparse to make a meaningful judgment.
And while the UKGC remains firm that these arent affordability checks in disguise, legal experts arent entirely buying it.
Affordability by another name? Critics push back
Melanie Ellis, Partner at Northridge Law, argues the Commissions current position contradicts previous enforcement messaging.
To avoid any further confusion on this topic, she said, the Commission should formally retract earlier guidance suggesting operators must obtain evidence of affordability. That guidance is still muddying the waters.
Theres also growing concern within the racing sector, where funding from bookmakers underpins everything from prize money to grassroots operations. Some argue that a dip in betting volume could have ripple effects far beyond sportsbook margins.
In Europe, the Netherlands mandatory affordability checks introduced in 2024 have already faced criticism for driving players toward black market sites. The UKGC designed its frictionless financial risk checks to avoid that trap. But opponents warn that any perception of financial surveillance may still push high-staking customers abroad.
Embedding financial risk checks into the customer journey
Despite clear improvements in frictionless processing, the Commission now faces its most delicate task: helping operators embed financial risk checks seamlessly into the customer journey and explaining the process transparently without alarming users.
Stage Four of the pilot, due this summer, will focus on how the checks fit into broader customer interaction strategies, including how risk flags should trigger interventions and what support should look like once a financially vulnerable player is identified. This mirrors wider industry moves toward AI-driven monitoring, where frictionless checks could become smarter, faster, and more predictive.
The Commission insists that trust, not punishment, is the end goal. However, whether players, operators, and campaigners can align behind that remains uncertain.
In short, the technology may be frictionless, but the conversation around it still isnt.
