The UK Gambling Commission has published results from the second phase of its ongoing pilot scheme designed to evaluate the effectiveness and feasibility of financial risk checks for online gambling customers. The findings reveal that 97% of checks were completed “frictionlessly,” marking a notable improvement from the first phase and exceeding expectations set out in the government’s 2023 gambling white paper.
Background to the Pilot Scheme
The pilot was launched in August 2024 as part of wider gambling reforms introduced following the white paper review of the 2005 Gambling Act. A key proposal in the review was the introduction of financial risk checks—automated processes used to identify customers who may be gambling beyond their means.
Under the pilot’s framework, financial risk assessments are triggered when a player’s net deposits reach £500 within a rolling 30-day period. Licensed operators then work with credit reference agencies to assess whether these customers display signs of financial vulnerability. Importantly, the process is designed to be non-intrusive: most checks rely on open banking data or soft credit searches, avoiding the need for customers to manually provide documents or undergo disruptive verification steps.
Key Findings from the Second Phase
During the second phase of the pilot, which ran across a range of participating operators and data providers, approximately 1.7 million assessments were carried out on around 860,000 individual gambling accounts. The Gambling Commission reported that 97% of these checks were completed without requiring further action from customers, meaning they were entirely frictionless.
This is an improvement over the first phase, which recorded a 95% frictionless completion rate. It also exceeds the Commission’s initial estimate, which anticipated an 80% frictionless rate. The increase suggests growing efficiency in the process and better alignment between operators, data providers, and regulatory expectations.
Andrew Rhodes, Chief Executive of the Gambling Commission, commented that the latest results “demonstrate the potential of financial risk checks to be delivered in a way that is both effective in identifying risk and proportionate in terms of customer impact.”
Indicators of Financial Vulnerability
As part of the pilot, anonymised data was collected from two of the three major credit reference agencies. This data allowed the Commission to assess the characteristics of those whose gambling triggered risk assessments.
The results showed a significant correlation between gambling behaviour and financial hardship. Customers who reached the £500 deposit threshold were found to be:
- Two to four times more likely to have a debt management plan in place.
- Two to five times more likely to have defaulted on credit obligations in the previous 12 months, compared with the broader UK population.
These indicators suggest that financial risk checks could serve as a valuable tool in identifying individuals who may be at risk of gambling-related harm.
However, the Commission acknowledged that more work is needed to improve data consistency between different credit reference agencies. Disparities in how financial data is reported and interpreted can affect the reliability of assessments and the actions that follow.
Next Steps: Phase Three and Beyond
The pilot is currently in its third and final phase, which focuses on evaluating reporting practices and standardising data interpretation. The Gambling Commission has stated that the findings from this stage will be crucial in developing final policy recommendations and practical guidance for operators.
The Commission is also working with industry stakeholders to support the implementation of financial risk checks across the sector. This includes providing operators with clearer direction on how to interpret data, when to intervene, and what forms of customer support should be offered when financial harm is suspected.
It remains a core objective to strike a balance between consumer protection and individual privacy. The Commission has reiterated that any future requirements will be proportionate and aimed at minimising disruption to the customer experience, particularly for those who show no signs of risk.
Industry Response
The pilot scheme has been broadly welcomed by consumer protection groups, who view it as a positive step towards safer gambling environments. However, some in the betting and gaming industry have expressed concerns about overregulation and the potential for customer friction if checks become too frequent or intrusive.
The Betting and Gaming Council (BGC), which represents the majority of UK betting operators, has maintained that financial checks must be “frictionless, fair, and focused,” echoing the Commission’s stated aims.
In response to the second phase findings, the BGC issued a statement noting that “the data-driven approach is encouraging, and we continue to support initiatives that enhance player safety without deterring the majority of responsible customers.”
A Measured Path Forward
With the final phase of the pilot still underway, the Gambling Commission has not yet confirmed when full implementation of financial risk checks might begin. However, the early success of the frictionless model suggests that such checks could become a routine part of gambling regulation in the near future.
The broader aim is clear: to ensure that gambling in the UK is safe, fair, and sustainable. By identifying at-risk individuals through automated, data-led methods, regulators hope to intervene earlier and reduce the incidence of gambling-related financial harm.
The results from phase two are a strong indicator that this goal can be achieved with minimal impact on the vast majority of customers—those who gamble within their means and do not require intervention.
As the Commission continues its evaluation, all eyes will be on the final findings and the practical steps that follow, as the UK gambling industry prepares for a new era of data-driven regulation.
