Compliance Updates
Special Interview: A Conversation with Tom Farrell, CMO of ClearStake
Affordability is currently the word on everyone’s lips. Operators continue to face a ‘sustainability conundrum’ – they must fulfil their regulatory obligations and commitments to player protection, while ensuring their business remains profitable. For many, affordability can spell disaster, with up to 90% of customers lost when asked to prove they have the money they are wanting to spend. However, using Open Banking to carry out these financial checks as quickly as possible may be the answer to boosting retention and retaining otherwise lost revenues.
The DCMS recently published a public consultation on the UK gambling White Paper, while the Gambling Commission launched its own on financial risk checks, bringing their importance of affordability to the top of the agenda – but operators must now strike the balance between minimising harm and maximising revenue. Affordability checks that take too long risk sending customers to competitors, or worse, the black market.
One of the key remedies to the high level of churn experienced in the past is making sure financial risk checks can be carried out quickly and with as little friction as possible, so that customers can complete them with as much ease as approving a payment while online shopping. Operators have to reach a decision quickly because the longer players wait, the more likely it is they will go elsewhere while they’re waiting.
Of course, there are some people who under no circumstances will share financial data with someone like a gambling operator. There’s also a group of people who won’t share data because they know they are gambling beyond their means. This is of course the system working as it should and that’s a good thing. But there’s a third group of people for whom it’s too much effort. They’re asked to provide bank statements, at which point they go to a competitor, as the hoops they have to jump through are not worth it.
For a customer using Open Bank technology, such as ClearStake, what used to involve downloading and printing bank statements and a wait while the operator reviews the data, now takes just 30 seconds and a few clicks. A decision is recommended to the operator immediately and theoretically, the whole process can take less than a minute. Players click a link, and they are taken to a super slick and simple process where they press a couple of buttons and the relevant financial data is shared securely. They are always in control of their data and they can revoke permission at any time.
Our software categorises every transaction and we can calculate whatever the operator wants to see. It could be disposable income, net gambling spend, total income, or current balance on the account. Our software can also evaluate the rate of change so operators can see accelerating gambling spend or consistently declining savings and work out if the player’s gambling activity is still within the safe bounds of their current financial position.
Without responsible gaming and Enhanced Due Diligence (EDD) checks, gambling risks being over-regulated out of existence as the product will become unprofitable. To answer the sustainability conundrum many operators face, we need to find a middle ground. Sustainability means not letting people spend beyond their means. It means letting people have a bet if they can afford to, while not taking more money than they can spend.
Over the last two or three years, the Gambling Commission got strict on affordability checks. They asked operators how they know someone could afford to lose ‘x’ amount. The White Paper effectively agreed with the Gambling Commission and has clarified that if someone is losing £2,000 in the space of three months or £1,000 in one month, operators should be confident about the player’s financial situation. The headline was that affordability and EDD checks should be taking place.
This discussion around affordability is not only limited to the UK, and we are seeing lawmakers and regulators in several other countries considering measures in this area.
The industry therefore needs to be proactive as the problem will never go away if it keeps allowing people to bet money they don’t have. In the public mind, gambling will have the same fate as cigarettes which are currently being regulated out of existence.
Compliance Updates
MGA Marks Safer Gambling Week by Hosting Focus Group on Addressing Problem Gambling
As part of Safer Gambling Week, the Malta Gaming Authority (MGA) has launched the first in a series of focus groups aimed at addressing problem gambling and its effects on Maltese communities.
Bringing together key stakeholders such as Caritas Malta, Aġenzija Sedqa, the OASI Foundation and the Responsible Gaming Foundation, the session explored a self-assessment tool that the Authority is currently developing, grounded in recent research and industry trends.
The self-assessment tool, which will be available both in English and in Maltese, will guide individuals through a set of questions to help them identify whether gambling is causing harm in their lives. Based on the user’s responses, the tool will provide personalised recommendations and direct them to appropriate support services.
With invaluable input from organisations experienced in supporting individuals affected by problem gambling, the tool will undergo further refinement to maximise its effectiveness and relevance.
Clinical Chair at Aġenzija Sedqa, Anna Maria Vella, hailed the focus group as a “welcome initiative” which brought together a multidisciplinary team of experts.
“Working together and not in silos is always beneficial. We learn from each other to be more effective.”
Louis Bellizzi, Secretary of Caritas’ Foundation for Victims of Usury, said: “The MGA is in a unique position to coordinate the national effort to help alleviate the scourge of gambling addictions.”
In recent years, the Authority has taken significant steps to promote safer gambling practices, ranging from regular supervisory reviews on responsible gambling to enforcing stricter regulations.
The MGA closely monitors operators’ implementation of behavioural monitoring systems, self-exclusion systems and responsible marketing practices.
With a focus on high-risk areas, the Authority is refining its supervisory approach to be more dynamic and data-driven, ensuring responsible gambling practices are maintained and continuously improved to protect players effectively.
The MGA’s efforts align closely with the European Gaming and Betting Association (EGBA)’s initiative to establish a unified European standard for identifying markers of harm. The MGA is actively engaged in this initiative, working closely with fellow regulators and industry experts to create a comprehensive standard aimed at early identification of behaviours indicative of problem gambling.
The Authority’s proactive involvement in such initiatives underscores its dedication to fostering a responsible and transparent gaming sector, both locally and across Europe.
The post MGA Marks Safer Gambling Week by Hosting Focus Group on Addressing Problem Gambling appeared first on European Gaming Industry News.
Balkans
Serbia’s ZLF Urges Total Ban on Gambling Ads
Serbia’s Zeleno-Levi Front (ZLF/Green-Left Front), a local green political party, is advocating for a total ban on gambling ads in the country. According to its representatives, banning all ads would be the most surefire way to protect the public from gambling harm.
The ZLF just organised the Games of Chance, Games with the Health of Citizens (Igre na sreću, igre sa zdravljem građana) forum, scrutinising the gaming industry and its negative consequences. During the forum, representatives slammed the government’s recent proposal to limit gambling ads, saying that this wouldn’t be enough.
For context, the government recently proposed a ban on gambling ads featuring prominent celebrities, mirroring similar measures in other regulated markets. For context, Serbian law currently allows professional athletes to advertise betting products, to safer gambling advocates’ dismay.
The ZLF, however, believes that its total ban would be the most effective way to minimise potential harm. During the forum, National Assembly member Biljana Đorđević noted that the ZLF had submitted a ban proposal in March but regretted that the government had not responded to the proposal or discussed the matter.
Đorđević suggested that Minister of Internal and External Trade Tomislav Momirović has been avoiding the discussion. Momirović, for context, has previously suggested reducing the visibility of gambling ads by prohibiting ads on billboards on busier roads and streets.
Echoing arguments and concerns raised in other regulated markets, Đorđević said that having celebrities promote gambling exposed children to potential danger. Since younger audiences are more easily affected by marketing, this could cause them to associate betting as a normal part of sports.
ZLF MP Marina Mijatović repeated these claims, saying that the government has so far done a bad job at protecting minors from negative exposure to gambling. While Mijatović acknowledged that Serbia cannot prohibit gambling, she noted that the ads do not need to be so eye-catching and appealing.
The post Serbia’s ZLF Urges Total Ban on Gambling Ads appeared first on European Gaming Industry News.
Compliance Updates
Lord Allen of Kensington Appointed as the new Chair of the British Horseracing Authority
Lord Allen of Kensington CBE is confirmed as the new Chair of the British Horseracing Authority.
As a highly experienced Chairman, and one of the most prominent business leaders of his generation, Lord Allen brings a wealth of experience to the role including in the financial and commercial sectors, Government, broadcast, international companies and global sports events.
He is due to assume his post on 1 June 2025 and will work closely with current Chair Joe Saumarez Smith in the months ahead of taking up the role to ensure a smooth transition.
Lord Allen is currently Chairman and Trustee of the Invictus Games Foundation and was Chairman of the Manchester Commonwealth Games in 2000-2003 for which he was awarded a CBE.
He oversaw London’s bid for the 2012 Olympics and was Board Director on the Organising Committee. His ability to deliver critical projects that made the Games such a success saw him knighted in 2012.
He was a Chief Adviser to the Home Office from 2006 to 2008. In 2012, he was appointed by Ed Miliband to the position of Chairman of the Management Board of the Labour Party. In 2013 he was made a Life Peer, taking the title Baron Allen of Kensington.
Lord Allen began a distinguished career in broadcasting and media with Granada TV in 1991 before going on to have senior roles in leading companies in the sector including EMI, Virgin Media and Endemol. He is currently Chairman of Global Media and Entertainment Limited.
He is currently Advisory Chairman to global independent investment bank Moelis & Company, Chairman of multinational infrastructure group Balfour Beatty PLC, and Chairman of e-commerce retailer THG (formerly The Hut Group).
Lord Allen said: “I am honoured to be appointed to the role of Chair of the British Horseracing Authority at this important time for the organisation.
“I look forward to building a strong relationship with the new CEO and the Board and all our stakeholders, delivering the vision of building the commercial and reputational aspects of the sector.
“My love of horses stems from learning to ride as a youngster and enjoying the sport of horseracing over many years.
“My knowledge, skills and experience from various sectors, including media and entertainment, and having led many regulated and sporting organisations will hopefully stand me in good stead to bring a fresh perspective to this incredible sport.”
Chair of the BHA Nominations Committee and the BHA’s Senior Independent Director, David Jones, said: “Lord Allen is a very experienced Chairman, and I am delighted that we have appointed a candidate of such outstanding calibre.
“His record speaks for itself and his impressive leadership skills, financial and commercial acumen, broadcast experience and an understanding of Government will bring a fresh and independent perspective to the BHA’s work.
“Combined with his wealth of experience in global sporting events, Lord Allen impressed the committee with his perceptive grasp of the challenges facing racing and will be a powerful advocate for the sport.”
The post Lord Allen of Kensington Appointed as the new Chair of the British Horseracing Authority appeared first on European Gaming Industry News.
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