Progress Update on Financial Risk Assessments Pilot: Promising Results and Next Steps

_{Helen Rhodes of the UK Gambling Commission discussed financial risk assessment pilots in the UK gambling sector. (Image: LinkedIn)}

The Gambling Commission (GC), led by Helen Rhodes, has provided an update on the ongoing pilot of financial risk assessments in the remote gambling sector, with relevance to both online and land-based casinos. 

Overview of the Pilot Initiative

The initiative aims to identify high-spending customers at risk of financial difficulties, supporting safer gambling without disrupting the customer experience. 

Writing on her blog, Helen Rhodes indicated that Stage Two findings show 97% of approximately 860,000 accounts assessed across three credit reference agencies could undergo frictionless assessments, an improvement from 95% in Stage One.

This suggests that integrating these assessments into operational processes is feasible, with only around 3% classified as "thin files" or unmatched, down from 5%. Just 0.1% of active accounts (roughly one in 1,000) may require non-frictionless assessments, indicating a minimal impact on customers.

The pilot also highlighted variability across credit agencies due to different data sources and risk categorisation methods. 

Ongoing work by the Financial Conduct Authority (FCA) aims to improve consistency. 

Analysis suggests high-spending customers are more likely to show signs of financial distress, such as defaults or debt management plans, supporting the targeted approach. 

Insights on Customer Risk Profiles

The next phase will examine data consistency across agencies and refine methods for identifying severe financial difficulties. Financial risk assessments are intended as a supportive tool, complementing other safeguards.

Data sharing concluded on 30 April, with further analysis into the summer, informing future policy and broader industry adoption.

The GC states that overall, the pilot's results are encouraging, indicating that frictionless, accurate, and targeted customer screening can enhance responsible gambling efforts across both online and land-based casino environments.