Gambling Commission unhappy with operators slow to spot gambling-related harm

Operators are not acting quickly enough to combat gambling-related harm according to the UK Gambling Commission (UKGC).

The UKGC acknowledged many operators were working to improve their customer interaction processes, but had failed to effectively scrutinise this data historically.

To address this issue, the regulator has triggered a ten-week long consultation into improved customer interaction standards.

“We are consulting because we have compelling evidence that the current thresholds for action determined by operators are too high and are not effective at identifying and preventing harm to consumers, including people in some of the most vulnerable circumstances,” the UKGC claimed.

It has highlighted processes which are too slow and too reliant on manual action, together with identified lower levels of protection for new customers.

In addition, the UKGC has suggested that some operators contracting with suppliers have failed to employ sufficient processes for account monitoring and have historically displayed insufficient knowledge of their customers as a result.

The UKGC revealed that as of September 2019, its enforcement team worked on 40 cases involving licensees, of which 26 were primarily concerning breaches in safer gambling policy.

“Breaches of the revised customer interaction LCCP code 3.4.1 from October 2019 has emerged on at least 15 occasions and numbers are expected to continue to grow,” the regulator confirmed.

The UKGC has said it wants to retain existing LCCP requirements aimed at minimising the risk of gambling-related harm, as well as the current three-pronged approach of identification, interaction and evaluation.

However, the regulator has expressed its aim of adding “specific measures” to the LCCP requirements which operators must adhere to and that operators should have clearly defined thresholds where possible.

These include specifying the form of activity which must be monitored, that any processes used identify harm in a timely manner and that operators should develop automated processes to monitor harm where possible.

To support this goal, the UKGC has suggested the creation of a new customer interaction manual, which will reference the LCCP requirements but also give operators guidance on how they might address individual cases.

“Whilst some operators have continued to improve their customer interaction processes, our evidence shows that many online operators are not setting thresholds for action at appropriate levels,” UKGC executive director Tim Miller said.

“They are not taking the appropriate action or acting quickly enough when they do identify risks of potential harm.

“We are clear on the need for gambling companies to take further action and that the Commission must set firm requirements to set consistent standards.

“But we want to have an open discussion with the gambling industry, consumers, people with lived experience and other stakeholders, to ensure we strike the right balance between allowing consumer freedom and ensuring that there are protections in place to prevent gambling harm,” Miller added.

Customer interaction failures were identified in several high profile UKGC cases over the past year, including those involving Caesars Entertainment, Betway, Matchbook, PT Entertainment Services and most recently BGO, NetBet and GAN.

The consultation ends on 12 January 2021.