Gambling Commission Publishes Stage Two Results of Financial Risk Pilot

The UK Gambling Commission (UKGC) has released its latest findings from the ongoing pilot project testing frictionless financial risk assessments. Now in its second stage, the initiative aims to explore how remote gambling operators can better identify high-spending customers who may be facing financial hardship, without requiring intrusive affordability checks or harming credit scores.

Helen Rhodes, Director of Major Policy Projects, shared the update on 21 May 2025, emphasizing the pilot’s cautious and phased design. The project remains in its testing phase and has not been implemented live with consumers. Instead, it operates in collaboration with major remote operators and credit reference agencies to simulate how financial risk data might be used in real-world scenarios.

Stage Two Findings: Frictionless Checks Possible in Most Cases

During stage two, approximately 1.7 million financial risk assessments were carried out across three credit reference agencies, linked to around 860,000 individual gambling accounts. The results are promising: 97% of assessments were completed in a “frictionless” manner—up from 95% in stage one and well above the 80% benchmark set by the 2023 Government White Paper.

The UKGC clarified that these risk checks differ from traditional affordability checks, which are not required by current regulations. Instead, the pilot focuses on detecting significant financial difficulties, such as defaults, multiple arrears, or debt management plans, among a small subset of high-spending customers.

Rhodes estimates that only about 0.1% of total customers (roughly one in every 1,000) would both meet the criteria for financial risk assessment and be unable to undergo a frictionless check. This figure significantly undercuts earlier concerns that such checks could be disruptive to the wider player base.

Data Quality and Operator Integration Under Review

Stage two has also provided valuable insights into the consistency and reliability of data across different credit reference agencies. While each agency uses its own models and sector data, the UKGC acknowledged that operators are still seeing varied results, making it difficult to interpret risk scores consistently. Reducing unnecessary discrepancies will be a central focus of the post-stage three analysis.

Other implementation issues being evaluated include how best to present risk assessment data to operators and how such insights could be incorporated into broader customer interaction and support strategies. NatCen continues to serve as the Commission’s independent evaluation partner throughout this process.

Identifying At-Risk Customers and Next Steps

The pilot also helped identify financial risk patterns among the test group. Customers who triggered assessments were found to be two to five times more likely to have recent defaults or debt management plans than the general UK population. Notably, customers under 25 were more often unmatched in the credit reference process, indicating potential data gaps for younger demographics.

Looking ahead, the Commission will focus on analyzing the results from stage three, which concluded at the end of April. A follow-up analysis phase will run into the summer, examining credit agency consistency and exploring how best to target assessments toward the most serious financial risk cases.

“These further findings from the pilot have helped us understand the extent that assessments could be conducted in a frictionless manner,” said Rhodes. “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 Commission continues to stress that financial risk assessments are meant to be used alongside other data sources to provide a full picture of customer wellbeing, not as standalone tools. Any future implementation would aim to be minimally invasive while increasing protections for those most at risk.

Source:

Financial risk assessments pilot – update on Stage two, gamblingcommission.gov.uk, May 21, 2025