What are the changes to financial vulnerability checks and risk assessments for remote gambling licensees?

Remote gambling operators will be impacted by planned changes to the Social Responsibility Code (SR Code) 3.4.4 and the newly published Betting and Gaming Council (BGC) Voluntary Code. The changes place new obligations on remote gambling operators to carry out financial vulnerability checks and risk assessments from 30 August 2024.

Social Responsibility Code 3.4.4

The changes to the SR Code 3.4.4 require licensees to undertake a financial vulnerability check for customers who reach these thresholds:

• £500 net deposit in a rolling 30-day period from 30 August 2024; reducing to
• £150 net deposit in a rolling 30-day period from 28 February 2025

The financial vulnerability check must be a public-record information check for financial vulnerability and must check whether the customer is subject to a bankruptcy order, County Court Judgment (CCJ), Individual Voluntary Arrangements (IVA), High Court Judgment (HCJ), Debt Relief Order (DRO) or equivalent.

Licensees must take proportionate action where risk is identified and record the rationale for the decision.

Policies/procedures must be updated to include whether manual or automated action is required and when immediate action is necessary to limit harm.

No further check is required if a check has previously been completed within 12 months.

SR Code 3.4.4 does not apply to remote lottery licensees who do not provide instant-win or high-frequency lotteries.

Betting & Gaming Council Voluntary Code on customer checks

The BGC Voluntary Code thresholds are as follows:

• £5,000 net deposit in a rolling month – undertake a risk assessment of the customer to understand their financial situation and if they are displaying any indicators of harm.
• £2,500 net deposit in a rolling month for 18–24-year-olds.
• If a risk assessment has not taken place, the customer must not exceed the £5,000/£2,500 net deposit in a rolling month for up to 3 months, after which time the account must be restricted.
• Risk assessment must include:
  • A safer gambling interaction with the customer via 2-way live chat or phone (including self-declaration of income/wealth).
  • A review of the customer’s affordability including estimating income/wealth.
  • A review of open source information on the customer.
  • A review of relevant information obtained from the customer.
  • Financial insights from a third party to estimate income/wealth.
• Operators must take appropriate action where high-risk activity is identified.
• £25,000 net deposit in any 12-month rolling period – undertake enhanced consideration (enhanced due diligence) on the customer, which can include consideration of the customer’s winnings/net position.
• When determining financial thresholds, a customer’s overall net position can be considered over the previous 180 days (recycled winnings can be taken into account).

If you have questions or concerns about the above changes will impact you, please contact Richard Williams.