Tory peer adds to growing pressure on Gambling Commission over affordability checks

(AsiaGameHub) –   Conservative Party peer Nick Herbert has joined a growing number of prominent figures in criticizing the UK’s Gambling Commission’s affordability checks.

Speaking in the House of Lords, the former MP for Arundel and South Downs, now Baron of South Downs, urged Culture Secretary Lisa Nandy to reconsider the “ill-targeted policy, which, after all, was not the government’s in the first place.”

Herbert’s intervention adds to a chorus of opposition aiming to prevent the implementation of these checks, which includes gambling reformist James Noyes and Reform UK leader Nigel Farage.

The Gambling Commission is scheduled to meet tomorrow to discuss the implementation of Financial Risk Assessments (FRAs), the most stringent level of its affordability check system. However, Herbert has called for a halt to this process.

“On Thursday, the Gambling Commission will decide whether to approve the roll out of affordability checks on online betting,” he stated.

“When the previous government announced these checks three years ago, ministers said they should be totally frictionless. The pilots have not been. Immense damage has been done to horse racing already, and to what effect?

“Bettors resent intrusive checks and are driven to the black market, racing loses revenue an estimated £250m over five years, and so in turn does the Treasury, and while I appreciate the potential harm of other forms of gambling, betting on racing is simply not in the same league.”

Last year, the Gambling Commission launched a six-month pilot of its affordability solution, testing both the less intrusive Financial Vulnerability Checks and the more comprehensive FRAs.

Despite this, criticism from both the industry and political spheres has persisted.

“The risks are akin to that of playing National Lottery scratch cards. Should these be restricted too?” Herbert questioned in the Lords this week.

“There has been no proper evaluation of the affordability pilots, and it appears that the checks will be green lit with no parliamentary debate or scrutiny.

“Affordability checks are directly contrary to the government’s declared support for racing, so I urge the Culture Secretary to step in now and revisit an ill-targeted policy which, after all, was not the government’s in the first place.”

Herbert adds to growing list of affordability checks’ critics

Herbert is not the first, even this week, to appeal to the Commission for a delay in the rollout, but there is a sentiment that this backlash from influential figures may have come too late.

However, some individuals and organizations within the industry have long opposed these checks.

The Betting and Gaming Council (BGC), a vocal critic of the measures since the early stages of the Gambling Act review in 2021, confirmed this week to SBC News that it is exploring legal action to prevent their implementation.

A spokesperson for the BGC commented: “The evidence so far suggests these proposals are not fit for purpose and risk driving people away from the regulated market towards the growing illegal online black market, where there are no protections and no safeguards.

“Given the serious concerns raised by operators there is a real risk the industry could ultimately be left with little choice but to consider legal challenge if these proposals proceed without further scrutiny.”

Despite widespread opposition, the Commission maintains that only 3% of active accounts will be subject to checks, with the majority remaining frictionless.

FRAs have been trialled on bettors who stake £1,000 within 24 hours or £2,000 within 90 days, equating to approximately £22 per day.

However, these thresholds have continued to draw criticism, most recently from Farage, who argued that they are “killing traditional bookmakers” and “driving the industry underground.”

Last week, James Noyes, who resigned from the Gambling Act Review Evaluation Advisory Group due to concerns over the checks and a belief that his feedback was being ignored, also voiced his opposition.

While Noyes still supports affordability checks in principle, he wrote to Nandy last month expressing “deep concern over recent reports highlighting the pilot’s apparent lack of transparency and efficacy.”

The Commission appears poised to proceed with its decision-making process tomorrow, despite the significant opposition from various figures. Thursday, May 21st, is shaping up to be a pivotal day in the history of UK gambling, regardless of the outcome.