UKGC targets affordability with new enforcement report
Regulator calls on operators to raise AML standards and adopt benchmark triggers for affordability checks
The Gambling Commission (UKGC) has called on operators to impose “affordability triggers” on players as part of a wider plan to address gambling related harm.
In its annual ‘Raising Standards for Consumers Enforcement Report,’ the UKGC said operators who do not impose such triggers are at risk of not understanding whether customers are spending an affordable amount or whether the money is from a legitimate source.
The UKGC targeted affordability standards as part of a wider consultation on the use of credit cards in gambling, released earlier this year. EGR has learned that the UKGC expects to roll out changes to licensing codes of practice in this area by the end of 2019.
Qualifying its decision to target affordability, the UKGC said it recognised that “not all business models are the same and that operators have customers with different wealth and disposable incomes”.
However, it added an expectation that operators should be able to provide evidence they have checked consumer affordability and have developed a framework that “fully reflects and incorporate the diversity of its customer base”.
In addition to targeting affordability, the UKGC said its compliance and enforcement cases have revealed “again and again” that operator AML procedures and controls are “not fit for purpose”.
The UKGC said that while it is encouraged by investment and positive examples of operator actions in this area, it is also concerned by the “frequent disconnect” between operator AML procedures and ongoing due diligence and customer monitoring.
Citing “concerning” levels of staff training in AML, the commission said that those operators failing to learn these lessons will face further “draconian action” in the future.
As part of efforts to address this, the UKGC has included operator checklists within the report, aimed at encouraging operator review of safer gambling, AML, advertising and affordability standards.
This month, two operators, Gamesys and Kindred Group, paid penalty packages totalling £2.8m for failures in their respective AML and social responsibility policies, and allowing players to gamble without adequately verifying their source of funds.
UKGC CEO Neil McArthur added: “We want to try and minimise the need for such action by providing advice, a programme of support material and compliance activity to help operators get things right in the first place.’’