Compliance Updates
Our UKGC consultation response: Failing to protect the vulnerable should not be the White Paper’s legacy
The dust has settled and the process is complete. The consultation on the proposed changes outlined in the UK Gambling White Paper is closed so now we just have to wait and see. Whilst we do so, we thought that in the spirit of transparency, we would share our own thoughts, more or less as they were communicated in our consultation response to the UK Gambling Commision.
Offering a real-time customer risk profiling tool, ClearStake’s focus was obviously on affordability checks. But then, much of the industry’s attention has been on this topic over the last few months. This is, to our mind, the single most important challenge facing the sector. Addressing it in the right way, a way that protects both punters and operators, will be the key to a sustainable, profitable future.
And with that goal uppermost in our mind, here is what we said:
1. Affordability checks must use real financial data
Certainly at the levels of spend proposed as meriting more thorough checks (£1,000 in a day or £2,000 over the space of three months), we don’t believe there is any real substitute for real financial data, by which we mean bank data. There is simply no other way of establishing whether a player can afford to lose this amount of money or not. Everything else – including data from credit reference agencies – is guesswork. We believe that the single greatest mistake that could be made during this process is not solving the problem of financial harm caused by gambling. That won’t be an issue if the government requires decisions to be made by operators in possession of a proper financial picture of their customers.
2. We can solve two problems at once
The consultation focused on affordability checks, but it would be almost perverse to ignore the wider reality at play here. Operators also have to perform anti money-laundering and source-of-funds (SOF) checks on their customers, and they do so by looking at bank statements. Given this is the case, it makes a lot of sense to us to effectively combine both these requirements within a single check.
3. At higher spend levels, it makes sense to keep customers connected
There has been a lot of talk about how frequently checks should take place, or to put that another way, whether it should be necessary to go back to a customer within six months or a year if they have already passed a check. To us, this rather misses the opportunity presented by Open Banking in particular. After the first check, assuming the player allows it, any checks in future can be entirely frictionless. The connection can remain in place and used when necessary (and only when necessary!) in order to make the ongoing compliance relationship as smooth as possible. We don’t expect ongoing connection to be mandated, but it should certainly be held up as best practice for all concerned.
4. Some of the proposed data points make little sense
When a solution that takes guesswork out of the equation is available, does it really make sense to suggest that postcodes and job titles are meaningful ways to determine an individual’s financial situation? We don’t think so. We believe that continuing to ‘lean in’ to data like this gives a misleading impression that it is good enough. It isn’t. Even as part of a broader decision-making process, it is very difficult to see where some of these data points fit in. You could say the same, of course, about missed loan repayments from three years ago.
5. The solution exists – why cobble together a new one?
Hovering behind the entire consultation process appears to be a not-quite-defined ‘solution’ to the affordability challenge. This is apparent in the various hints towards the use of CATO data (let’s just say it, even if the Commission aren’t willing to) and a hodge-podge of random data points in order to make affordability decisions, as part of a system that would have to be piloted in order to ensure a) it works and b) it doesn’t create data security issues.
Leaving aside the absurdity of asking us to judge the merits of an approach that hasn’t actually been defined, we would simply point out that in Open Banking, a solution to this challenge already exists. One that is already used by over 7 million people in the UK, by most UK operators to handle payments, and already used to handle affordability and SOF checks by forward-thinking operators. Why on earth are we re-inventing the wheel?
So there you have it. That’s what we told the consultation, albeit in language a little less colourful. I hope they listen.
Asia
Kazakhstan Orders Telecom Providers to Block Illegal Online Casino Payments via Mobile Balances
Kazakhstan authorities have moved to tighten controls on illegal online gambling payments after uncovering schemes that use mobile phone balances to fund unlicensed casino activity.
The Financial Monitoring Agency (FMA) issued instructions to telecom providers to strengthen monitoring and introduce systems to detect and block suspicious transactions.
According to the FMA, mobile operators including Tele2, Altel, Beeline, Kcell and Activ were called to a working meeting where regulators demonstrated how illicit payment flows to online casinos are being processed.
To verify the issue, the FMA carried out test purchases across 10 illegal online casino websites using services from all major mobile operators. The tests confirmed that payments via mobile balances were possible.
The agency stated that the goal is to cut off financial access to illegal operators and reduce public exposure to unregulated platforms. Further enforcement actions are expected as monitoring continues.
Meanwhile, Kazakhstan is preparing to significantly tighten rules on the promotion of illegal gambling. A group of senators is advancing an initiative to introduce criminal penalties for influencers who advertise online casinos and organise “giveaways.”
In related developments, a Kazakhstani influencer has recently been arrested in Vietnam on suspicion of running an illegal gambling operation.
Furthermore, the country is also restricting citizens’ access to legal gambling options, indicating a broader anti-gambling stance towards locals while still pursuing gambling tourism.
Lawmakers introduced rules restricting access to casinos, slot machine halls and betting venues in several regions to foreign nationals only. The changes will take effect on 17 May.
In March, President Tokayev signed a law establishing four new gambling zones for foreigners in the country.
The post Kazakhstan Orders Telecom Providers to Block Illegal Online Casino Payments via Mobile Balances appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
In a clarion call for the Gambling Commission and Licensing Authorities, including local police forces, to be more vigilant in their approach to illegal gambling, 97% of respondents to the latest Bacta Pulse survey confirmed they would back stronger enforcement of the law.
As the statutory regulator the Gambling Commission leads on intelligence-led investigations and possess powers to initiate criminal investigations into illegal land-based activity. To combat what is recognised as constituting a growing problem, the Gambling Commission was allocated an additional £26 million in funding over three years starting in 2026 in order to strengthen enforcement against illegal operators.
Updating the current state of play Bacta President Joseph Cullis said: “In England and Wales, local authorities are responsible for licensing premises and, alongside police, are expected to take enforcement actions including raids and shutdowns against illegal gambling operating within their specific area, seizing equipment and prosecuting operators. It’s a multi-agency approach which also includes HMRC in order to tackle tax evasion.”
He added: “While the Gambling Commission has historically focused on the online sector, concerns regarding land-based illegal activity, including unlicensed gaming machines in pubs, members clubs and cafes remain. These illegal operators ‘steal’ discretionary spend from Bacta members and provide none of the player protection safeguards that are so important in the regulated market. Illegal gambling remains a key issue of concern for Bacta members and it is a topic that is permanently on our agenda in discussions with colleagues at UKGC.”
The rigid and outdated regulations governing the siting and mix of machines is having a profound impact on investment. According to the Pulse Survey 87% of respondents said that greater machine flexibility would encourage them to invest in their venues. With the remaining 13% saying the question was not applicable the figure jumps to 100% – the first Pulse question to attract a unanimous response.
In what has become something of a recurring theme the Bacta Pulse survey has again revealed what members believe to be a serious lack of knowledge concerning the industry.
Joining MPs and Councillors, both of which were identified in previous surveys, are Local Authority Licensing Officers with 93% of respondents saying this important group “do not know the industry well.”
Explaining how the findings will impact and inform Bacta’s engagement with policy makers, Director of Communications Allaster Gair said: “The results are invaluable in shaping the conversations that we have on a daily basis with external stakeholders and I am grateful for every Bacta member who has participated. Illegal gambling is of huge importance both to our members, to players and to HMRC. The 80/20 rule is outdated and is having adverse consequences for the industry supply chain. Getting closer to Licensing Officers is an area that we are addressing and will continue to address using the opportunity provided by events such as EAG Expo, the SR Exchange and via the offices of Bacta’s MSOs.”
The post 97 Percent of Bacta Members Support Increased Action on Illegal Gambling Operators appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
Endorphina Limited has been granted a Gaming-Related Vendor License (Tier II) by the UAE’s General Commercial Gaming Regulatory Authority (GCGRA), positioning the supplier to operate in the country’s newly regulated commercial gaming market.
The company said it is among the early licensed entities in the UAE. It added that the license is granted subject to ongoing compliance with GCGRA regulations, conditions, and directives.
Džangar Jesenov, Head of Compliance at Endorphina, said:
“Over the past years, Endorphina has grown into a truly reputable, internationally recognized supplier, following a principle of gradual and sustainable development. Today, in terms of the number of jurisdictions where we are authorized to operate, we are proud to be ranked among the Тop providers worldwide. Receiving this license in the early stages of the UAE’s regulated gaming market is both an honor and a responsibility. We are excited to contribute to shaping a sustainable and innovative industry under the guidance of the GCGRA.”
Endorphina said the UAE approval supports its broader strategy of expanding across regulated markets.
The post Endorphina secures UAE Gaming-Related Vendor License (Tier II) from GCGRA appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
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