The 'Affordability Checks' Debate Rumbles On Ahead of the Release of the White Paper on Gambling Reforms

British lawmakers, members of the public, anti-gambling campaigners, and representatives of the gambling industry have been anticipating the inclusion of compulsory affordability checks in the UK government’s review of the industry, according to a report by Ernst and Young.

The report, commissioned by the Betting and Gaming Council (BGC), the trade body for the legal gambling and sports betting sector in the UK, found that the industry had performed well throughout the year, despite the negative financial impact of the Covid-19 pandemic and ongoing economic challenges such as rising energy prices and the overall cost of living.

Shift to Black Market Fears

The BGC estimates that the legal gambling and sports betting industry contributed £7.1 billion to the UK economy and £4.2 billion to the UK Treasury. However, gross gambling yield (GGY) has declined since mid-2021.

The introduction of online affordability checks and the reopening of brick-and-mortar venues, as well as the decline in incomes of local households, are believed to have contributed to this decline. The BGC has warned that a decline in the regulated gambling and betting market could lead to a shift towards the black market, which lacks the safer gambling tools designed to protect customers from potential harm.

Michael Dugher, CEO of the BGC, has called on lawmakers to ensure that the white paper is balanced and evidence-led in order to secure a sustainable future for the sector. He also called for greater clarity on the issue of affordability checks, as members of the BGC are concerned about a potential outflow of customers and funds toward the unregulated black market.

Punters are Fed Up

According to interviews and submissions from a number of customers, many have expressed anger about the mandatory financial checks implemented by gambling operators in the UK. Some have even suggested that they are close to giving up their normal leisure activity, while others feel it is not worth continuing to bet due to the stringent affordability checks.

The Racing Post has reported that affordability checks, which require punters to provide proof of income, were introduced before the government set out its proposals on affordability in the long-delayed white paper. These checks have been described as a violation of privacy by some customers.