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Compliance Updates

Bet on Compliance: Navigating the Stakes with the UK’s Affordability Checks

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By Isabelle Zanzer, Senior Regulatory Compliance Specialist at ComplianceOne Group

Feeling like the deck is stacked against you with all these talks of financial checks in gambling? Wondering if this new game plan will leave your privacy on a losing streak? If so, no need to bet on uncertainty anymore. We’re here to deal you in on the UK’s latest gamble towards responsible betting. Let’s shuffle through the details and lay our cards on the table, as we make sure you’re holding a winning hand in understanding what’s in play. Ready to roll the dice and dive in? Follow me.

On July 26, 2023, the UK Gambling Commission launched consultations on proposed reforms in the Gambling White Paper, focusing on areas like direct marketing, age verification, game design, and financial risk checks. This article delves into the latter, highlighting new financial vulnerability and risk assessments to safeguard customers.

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The UK’s consultation introduces two checks for gambling: light-touch financial vulnerability checks and detailed financial risk assessments. The first tier of checks is designed to identify financial vulnerabilities such as bankruptcy orders or significant debts, using publicly available data. The second tier involves enhanced financial risk assessments triggered by significant losses, requiring more comprehensive scrutiny of a customer’s financial situation.

Thus, in simple terms, what is going to happen at the heart of the UKGC’s new measures are two-tiered affordability checks designed to assess the financial vulnerability and risk of consumers engaging in online gambling. The first tier involves unintrusive checks that will be triggered when a customer reaches a specified net loss within a rolling period, using publicly available data to identify potential financial vulnerabilities. To dive a little deeper, this check will be conducted if a customer either has net losses of £125 in a rolling 30 days or £500 within a rolling 365 days. It would need to include “at a minimum a customer-specific public record information check for significant indicators of potential financial vulnerability”, including whether the customer is subject to things such as a bankruptcy order, county court judgment, or individual voluntary arrangement. Net loss would be defined as loss of deposited monies with an operator, not counting restacked winnings or bonus funds.

The second tier represents a more detailed assessment of financial risk, which is activated at higher loss thresholds. A comprehensive financial review is required for gamblers with significant losses, examining their financial data including credit status and spending. If third-party data is unavailable, operators may directly seek customer consent for access, ensuring a thorough understanding of financial health.

The gambling industry’s reception of these checks has been cautiously optimistic, particularly regarding the initial, less invasive tier. However, the prospect of more detailed financial assessments has sparked debate, not only among operators but also among consumers wary of privacy infringement.

As the UK gambling sector adapts to these new regulations, the challenge will be to strike an optimal balance between safeguarding consumers and maintaining the operational viability of gambling platforms. The pilot study represents a critical step in this process, offering valuable insights into the practical implications of affordability checks and the potential need for adjustments in response to industry feedback and consumer concerns.

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The outcome of the pilot study and subsequent parliamentary debates are pivotal in shaping the future of affordability checks in the UK gambling sector. As operators, regulators, and consumers navigate these changes, the overarching goal remains clear: to foster a safer, more responsible gambling environment that protects consumers from financial harm while ensuring the industry’s sustainable growth.

Striking the right balance in the new UK gambling regulations is like walking a tightrope. With the introduction of light-touch and in-depth financial risk assessments, operators may face the challenge of protecting players without overstepping into their privacy. These two-tiered checks aim to shield those at risk, using both public data and deeper financial insights.

The key here for operators will be to navigate these waters carefully, ensuring player safety while keeping the game fair and enjoyable. Now, when trying to find a balancing act, we need to consider the following:

  1. Regulatory Compliance Risk: Reviewing the existing practices against the UKGC’s affordability check guidelines, identifying discrepancies, and recommending changes to align with the new regulations.
  2. Data Privacy and Security Risk: Evaluating the ability to handle and protect sensitive financial data in line with GDPR and other data protection laws.
  3. Operational Risk: Assessing the impact of the new checks on daily operations and customer interactions.
  4. Financial Risk: Analysing the potential financial implications of the affordability checks on revenue and customer base.
  5. Reputational Risk: Considering the public and customer perception of the affordability checks, especially regarding privacy concerns, the key here, like in all relationships, is communication. For example, it is estimated that just the very highest spending 3 percent of accounts would undergo financial risk assessments. Most financial risk assessments – at least 80 percent – would be carried out through credit reference agencies. The checks are expected to be frictionless and not interrupt the customer journey unless concerns are raised. It is estimated that a further 10 percent of risk assessments will be done through limited data-sharing through third-party open-source banking, which is similarly straightforward from a customer perspective.

Finding this balance involves a tailored approach as one offered by ComplianceOne group, whereby operators can personalize checks based on individual player profiles, ensuring those at higher risk receive the attention they need while others continue to enjoy their play with minimal interruption. It’s about creating a safety net that catches those in need without trapping everyone else in unnecessary checks. The key to a winning strategy is the execute this balance, and understanding what is at stake: Reputation, Sustainability and Trust.

The post Bet on Compliance: Navigating the Stakes with the UK’s Affordability Checks appeared first on European Gaming Industry News.

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Compliance Updates

Playnetic strengthens European presence with licence to operate in Sweden

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Playnetic, the new immersive B2B iGaming provider has announced that it has been granted a Swedish licence, following regulatory approval from the Swedish Gambling Authority, Spelinspektionen. 

The licence allows Playnetic to launch its catalogue of innovative iGaming titles in Sweden, enabling the company to finalise partnerships with prominent operators across the country. 

This significant milestone marks a major step forward in supporting Playnetic’s ambitious growth plans, which include increasing its foothold in other European markets, as well as continued expansion in regulated markets across the globe. 

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Dan Phillips, Playnetic CEO said: “Since launching in early 2023, Playnetic has been exploring expansion opportunities in Europe to penetrate new markets and we are thrilled with achieving this milestone.  

“Thanks to our experienced compliance team, we were able to obtain this licence promptly, which is a huge positive as the market entry lines up perfectly with our regulatory roadmap for 2024. We are looking forward to launching our innovative suite of games which feature captivating themes and mechanics to players and operators in Sweden.” 

The post Playnetic strengthens European presence with licence to operate in Sweden appeared first on European Gaming Industry News.

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Bulgarian President Approves Gambling Law Amendments

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Bulgarian President Rumen Radev has decided not to veto the proposed amendments to the Gambling Law, which include a prohibition on gambling advertisements in the media.

Previously, President Radev had indicated that he was deliberating on the changes to the Gambling Law and was awaiting input from his advisors before making a final decision.

The prohibition on gambling advertisements in the media was approved by a significant majority of deputies during the final session of the 49th National Assembly. Despite objections raised by various media outlets, gambling operators, sports clubs, and other businesses between the readings, the amendments were endorsed. Some stakeholders argued against the ban, suggesting that public discussion should precede its adoption.

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The initiative for the amendments originated from GERB and DPS, and it was introduced unexpectedly during the last days of the 49th National Assembly by Yordan Tsonev (DPS) and Temenuzka Petkova (GERB). The bill swiftly progressed through the legislative process, passing its first reading in the budget committee and subsequently receiving approval in the plenary session. An extraordinary meeting of the Committee on Budget and Finance was convened to facilitate the voting on the amendments before the deputies commenced their pre-election recess.

The post Bulgarian President Approves Gambling Law Amendments appeared first on European Gaming Industry News.

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Thailand Considers Limiting Gambling Areas to 5% of Total Project Space

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The Thai government is exploring the possibility of restricting gambling areas within entertainment complexes to no more than 5% of the total project space. This proposal was revealed by Deputy Finance Minister Julapun Amornvivat, who also chairs the House committee responsible for evaluating the potential establishment of casino resorts in the country.

Amornvivat noted that the allocation of space for gaming activities within these entertainment complexes would be determined based on input from various governmental entities involved in a project.

Last month, Thailand’s cabinet approved a report from the National Assembly committee that examined the feasibility of introducing casino resorts in the country. The Ministry of Finance was tasked with conducting a 30-day study to assess the viability of implementing such a policy.

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Each proposed venue would require a minimum investment of THB100 billion ($2.75 billion), according to the committee report. Amornvivat recently requested a two-week extension for the study period to further evaluate the matter in collaboration with 16 other government agencies.

The special House committee’s study focused on three main areas. First, it examined the potential impacts of introducing entertainment complexes with casinos on various aspects of Thai society, including economics, politics, social dynamics and the environment.

Second, the committee analysed the business framework of integrated entertainment venues, exploring revenue generation mechanisms such as taxes, fees and licensing structures. It recommended the implementation of specific casino taxes and the establishment of a fund aimed at addressing the negative effects of gambling activities.

Last, the report highlighted the importance of conducting a comprehensive review of the legal framework governing entertainment venues and gambling laws in Thailand. This effort aims to update existing legislation or develop new laws that align with the evolving societal landscape.

The post Thailand Considers Limiting Gambling Areas to 5% of Total Project Space appeared first on European Gaming Industry News.

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