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Open Banking Can Change the Game in the Post-Credit-Card-Ban UK Gambling Industry

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The consequences of the upcoming ban on credit card gambling in the UK might bring more financial harm to the i-gaming industry and inconvenience to responsible players than good to problem gamblers who constitute roughly 1% of 24 million adults who gamble in Britain. Fortunately, the situation opens the window of opportunity for open-banking payments – even more convenient than cards and e-wallets and not as controversial.

The official rationale of the new restriction imposed by the Gambling Commission (UKGC) might create an erroneous impression that most players in the UK are addicted to gambling and place bets using credit cards. In reality, according to the UKGC’s data, only around 800,000 people in Britain use credit cards for gambling, and just about 22% of those who do are problem gamblers. In other words, the newly introduced regulation, meant to protect less than 180,000 adults from getting into debt by making it just slightly more complicated, will push the remaining 620,000 responsible players, who gamble on credit cards just for convenience and simplicity, towards alternatives.

As e-wallets are very well known and broadly used among players, one could conclude that e-wallet providers are the grand winners here. An increase in the demand could be a good reason for them to raise prices. But the UKGC must know very well that wallet apps can be easily used as proxies for credit card gambling, and thus further restrictions might be a matter of time. But there is a way for all – gaming companies, gamblers, and the regulator – to achieve their goals without causing harm to other parties in the ecosystem. This can be done through open banking.

Open banking enables initiating direct wire transfers between players and gaming companies without the need for the former to leave the latter’s website and fill a transfer order form. The transactions are bank secure as the authentication process is, in fact, on the bank. It’s quick, easy, and does not require any third-party apps. The payee gets a notification on the transaction status in real time, so credits or virtual tokens can be added to a user account instantly, which means no interference with the overall gambling experience. Furthermore, this approach does not allow the player to spend more money than they have on their bank account, so it mitigates the risk of getting into debt. On top of that, pay-outs are easier and cheaper to handle as they take only as much time and cost as a regular Bacs BACS transfer (plus a small technical processing fee). I believe this might be a perfect solution for responsible gamblers who appreciate the simplicity of credit card payments as well as for i-gaming companies willing to enhance their overall user experience.

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Problem gambling needs to be addressed, and people who suffer from gambling addiction as well as their families should be, surely, receiving appropriate support. Although, I don’t think the ban on credit card gambling could, in any way, be the form of support such people need. For the UK’s gambling industry and over 10.5 million online players, smooth open-banking payments can be a way to have a cake and eat it.

 

Straal is an international provider of payment, optimization and fraud prevention solutions for future-minded businesses. The company offers a comprehensive suite of products that make accepting digital payments easier, as well as more effective and secure. Straal enables accepting one-off and recurring payments carried out by customers with credit and debit cards of all major organizations, initiating transactions via open banking APIs, ordering SEPA Direct Debit cycles and more. Thanks to Straal, customers can pay in currencies of their choice (over 150 options), using their preferred desktop and mobile platforms, while merchants can effectively maximise their transaction approval rate and mitigate risk. Founded in 2017, the company is headquartered in Warsaw, Poland. www.straal.com

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SYNOT Enters the Bulgarian Market

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SYNOT Group has successfully realized its first installation of land-based products in Bulgaria. The popular MAGIC BALL LINK jackpot system has been launched at IMPERIA Gaming Clubs in the city of Plovdiv, with three installations (a total of 12 Eclipse FL-32 machines) at three different locations.

“I would like to thank to IMPERIA Gaming Clubs for the trust and the opportunity to show the best performing products of SYNOT to the player’s audience in Bulgaria. I strongly believe that this is the beginning of a fruitful partnership which will grow in time,” said Stanislav Stanev, International Business Development Director of SYNOT Group.

MAGIC BALL LINK is a progressive jackpot system that has already gained popularity in several markets due to its attractiveness and performance. Bulgarian players can now enjoy eight exciting linked games that combine a entertaining gaming experience with the potential for significant winnings. This installation follows shortly after SYNOT Group recently obtained a license for the Bulgarian market, paving the way for further growth and expansion in the region.

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“We are happy to welcome SYNOT slot machines on our floors, and we really believe that SYNOT products will supplement our diverse offering to the players and will become an integral part of all our locations,” said Gavril Chetrafilov, Owner of IMPERIA Gaming Clubs.

The post SYNOT Enters the Bulgarian Market appeared first on European Gaming Industry News.

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Compliance Updates

UKGC Publishes Update on Financial Risk Assessments Pilot

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The UK Gambling Commission (UKGC) has published a further update on the ongoing pilot of financial risk assessments.

Written by the Director of Major Policy Projects who is leading the pilot, Helen Rhodes, the update provides information on Stage two of the pilot and the issues being explored in the final stages of the pilot.

“Financial risk assessments are a proposed way of identifying high-spending remote gambling customers who may be in financial difficulties, in order to help support them,” the Commission’s latest update on the finance risk check pilot reads.

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“This is not the same as ‘affordability checks’ – the Commission does not have any regulatory requirements for affordability checks and is not proposing any. Financial risk assessments would be a much more targeted way of identifying potentially financially vulnerable customers. They would not affect a customer’s credit score if they were introduced in the future.”

Key Points Covered by the Update

The UKGC says that the pilot has given it a better understanding about the financial risk profile who met the thresholds. These customers were found to be between twice and four times more likely to have a debt management programme than those who didn’t meet the thresholds, and more between twice and five times more likely to have a default in the last 12 months.

The most remarkable is the fact that the data has reinforced the UKGC’s view that the finance risk checks will be as non-intrusive and frictionless as possible. According to the UKGC’s estimations, only 0.1% of customers would be subject to a non-frictionless assessment.

It also says that 95% of assessments carried out in stage one were possible in a frictionless matter, with this figure rising to 97% in stage two, where the total number of risk assessments carried out across three credit reference agencies rose from 860,000 to 1.7 million.

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The analysis phase of stage three of the pilot is expected to continue into the summer, after which the UKGC will move into stage four.

NatCen is continuing to work as the UKGC’s evaluation partner on this pilot and post-pilot analysis work.

Director of Major Policy Projects, Helen Rhodes, said: “These further findings from the pilot have helped us understand the extent that assessments could be conducted in a frictionless manner.

“Building on our staged approach to the pilot, we will now further explore data consistency across credit reference agencies, as well as how to support operators to identify the severity of financial difficulties that a customer may be experiencing and how they could support these customers.”

The post UKGC Publishes Update on Financial Risk Assessments Pilot appeared first on European Gaming Industry News.

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Irish Politician Philip McGuigan Calls for Urgent Action on Gambling Harm Treatment

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Sinn Féin MLA Philip McGuigan, Chair of The All Party Group on Reducing Harm Related to Gambling, has called for urgent government action following the publication of a report presenting the findings from the 2024 Gambling Prevalence Survey, commissioned by Department for Communities, which reveals alarming levels of gambling-related harm in the north.

Speaking in the Assembly, McGuigan said what is perhaps most alarming from the survey’s findings, is the low number of people seeking help. Only 1% of those who gamble reported accessing support or information from gambling or mental health services.

He said: “The Minister of Health must act without delay to commission dedicated gambling treatment services. With existing addiction services already under pressure, additional funding is essential. The findings of this survey point to a serious gap in provision for addiction treatment in the north. The need is clearly there, but people aren’t getting the help they need.”

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According to the “Prevalence of Gambling in Northern Ireland 2024” report, 3% of the population are experiencing severe gambling-related harms, while a further 10% are considered low or moderate risk gamblers. Shockingly, approximately one in seven adults who gambled in the past year admitted to betting more than they could afford to lose. Additionally, one in eight reported needing to gamble increasing amounts to achieve the same level of excitement, and nearly one in 12 said gambling had caused health problems such as stress and anxiety.

McGuigan said: “These figures are deeply concerning and underscore the serious social and public health implications of gambling addiction. This isn’t just about individuals losing money; it’s about broken families, damaged relationships, and communities struggling with the fallout of gambling harms.”

The survey also found that 10% of people affected by gambling had experienced the breakdown of a close relationship due to someone’s gambling, highlighting the wider ripple effects of the issue.

To address the funding gap, McGuigan is also calling on the Minister for Communities to bring forward the promised levy on land-based gambling operators without delay.

“Calling the Minister for Communities to introduce a levy is a fair and necessary step. The industry profiting from gambling must contribute to the prevention and treatment of gambling harm,” he said.

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McGuigan also criticised the British Government for excluding Northern Ireland from the proceeds of the statutory levy on gambling operators introduced in Britain on 6 April. This levy is intended to fund research, prevention and treatment of gambling-related harm.

“Online gambling operators licensed by Britain’s Gambling Commission are freely advertising and profiting here in the North. Yet, our population is completely excluded from the financial benefits of the statutory gambling levy on these operators. That is unacceptable. Executive Ministers must demand that the North receives its fair share of this funding,” McGuigan said.

The survey further revealed that 66% of respondents believe there are too many gambling advertisements, and 71% support a watershed for gambling ads on TV and radio.

McGuigan is now urging the Secretary of State for Culture, Media and Sport, Lisa Nandy MP, to use her powers to implement tighter advertising restrictions, including a TV and radio watershed to limit exposure to gambling content during peak viewing times.

“The public clearly wants action. The evidence is there. We must act now to protect individuals and families from the devastating consequences of gambling addiction,” he said.

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The post Irish Politician Philip McGuigan Calls for Urgent Action on Gambling Harm Treatment appeared first on European Gaming Industry News.

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