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.
BetterGambling
BetterGambling Exclusive Report: 800+ UK Casino Operators Face Closure as 2026 Regulations Trigger Industry Apocalypse
Reading Time: 2 minutes
BetterGambling, the UK’s independent gambling industry think tank, released its comprehensive Market Intelligence Report, indicating over 800 casino operators will be forced out of the UK market by 2027, the largest industry slump in British gambling history.
The study, authored by BetterGambling’s stable of former casino bosses and regulatory experts, projects a precipitous 30-40% drop in authorised operators as the 2026 regulatory landscape renders continued operation economically non-viable for the low-to-midsized players.
“We are witnessing the greatest scale of change since the Gambling Act 2005. Our analysis proves that this is not just market consolidation – it’s a structural realignment of an industry that today supports 2,262 licensed operators as of March 2024,” said Diana Tunsu, Reviewer at BetterGambling.
Key findings from the BetterGambling report include:
• 680-900 operators anticipated to exit the market by the end of 2027 (30-40% of the current market)
• New casino launches will drop by 60-70% relative to 2024 levels
• White-label operations will see a 45-55% closure rate as a result of shifts in platform economics
• Stand-alone casinos will see 40-50% market consolidation as a result of compliance barriers
• Total first-year compliance investment of £800,000-2.8 million per operator.
The Compliance Investment Reality
BetterGambling’s in-depth analysis of operators reveals the true cash investment required for 2026 compliance. The regulatory fee alone will remove £100 million from the industry annually, and technology infrastructure upgrades will cost individual operators between £500,000 and £2 million.
“The economics are straightforward. Operators with GGY below £3 million per year are faced with a stark choice: spend significantly on compliance or consider strategic options including withdrawing from the market,” explained Diana Tunsu.
For more detailed analysis of the impact on different forms of casinos, see our in-depth UK Casino Reviews section.
White-Label Market Transformation
White-label casino businesses are recognized as being severely tested in this report, with 45-55% predicted to merge or close down. Of the estimated 350-450 current white-label businesses, BetterGambling predicts 200-300 will survive past 2027.
“White-label operators have a complex equation,” said the BetterGambling research team.
“They must navigate through the same compliance for independent operators when handling revenue-sharing arrangements with platform providers.”
The post BetterGambling Exclusive Report: 800+ UK Casino Operators Face Closure as 2026 Regulations Trigger Industry Apocalypse appeared first on European Gaming Industry News.
Reading Time: 2 minutes
The UK Gambling Commission (UKGC) is going to implement new deposit limit rules to help customers manage their spending.
Operators are currently required to offer tools so customers can easily set personal budgets for gambling at registration or when they first deposit money into their gambling account. To increase consumer empowerment the Commission is amending the rules to provide further consistency and clarity for customers when setting financial limits. These changes focus on how these limits are defined and communicated to customers.
From 30 June 2026 all online operators must provide customers with the opportunity to set a “deposit limit” which is based solely on the amount a customer pays into their account over a set duration. To avoid confusion, only this form of limit may be called a “deposit limit”.
In addition, gambling businesses will also be able to offer different limits, such as loss limits or limits where withdrawals are also taken into account.
The improvements to the rules are coming into effect in stages, and a key milestone is the set of previously announced changes which will come into effect on 31 October 2025 and require all gambling businesses to:
• prompt their customers to set a financial limit before they make their first deposit and make it easy for them to review and alter their limit
• remind consumers every six months to review their account and transaction information to help customers maintain control of their gambling spend
• offer financial limits using free text at an account level to help customers set meaningful limits
• provide financial limit setting facilities via a link on the homepage and deposit pages which are clearly visible and accessible, with the number of clicks to reach these facilities minimalised
• action all customer requests to decrease a financial limit immediately.
Helen Rhodes, Commission Director of Major Policy Projects, said: “Our work will help empower consumers to have greater awareness and control over their gambling. These further changes will also bring consistency and clarity for those consumers choosing to set deposit limits, while still supporting gambling businesses to offer customer choice for different forms of limits.”
The post UKGC Introduces New Deposit Limit Rules appeared first on European Gaming Industry News.
Reading Time: < 1 minute
As part of its ongoing commitment to player protection, the Malta Gaming Authority (MGA) has announced the launch of an online Self-Assessment Tool, available in both English and Maltese, designed to help individuals reflect on their gambling habits and behaviour.
Developed in close collaboration with several key local organisations – namely Sedqa, Caritas Malta, the OASI Foundation and the Responsible Gaming Foundation – the tool is completely anonymous, free to use and accessible to all.
Rooted in the Problem Gambling Severity Index – a widely recognised, evidence-based screening tool – the questionnaire comprises nine straightforward questions. These aim to assess the extent of an individual’s gambling behaviour while also considering broader social and environmental influences.
The tool encourages self-reflection in an accessible way, helping players consider whether they may benefit from reaching out for professional guidance. Should a user’s results indicate the need for further support, they will be directed to one of the participating organisations, each of which serves as a trusted point of contact for advice and care. Information is also available on safer gambling tools, such as setting limits or using global bet-blocking tools.
This initiative represents a collaborative, people-first approach to player protection, working alongside local entities in Malta and Gozo to ensure that anyone experiencing gambling-related harm is not only informed but also supported.
The MGA encourages players to use the tool regularly as a way to monitor changes in their gambling behaviour over time and stay mindful of any change that may occur.
The post MGA Introduces Self-Assessment Tool to Help Individuals Assess Gambling Habits appeared first on European Gaming Industry News.
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