Steve Hoare

Senate Inquiry urges vote to impose radical penalties on Brazil Bets Regime

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Ricardo Assis – SBC Noticias Brazil
The CPI’s rapporteurs are demanding a shock to the system and reset of the governance, regulation, and enforcement of Brazil’s online gambling sector. Ricardo Assis, Editor of SBC Noticias Brazil declares that all regulatory conditions of the Bets regime are placed under scrutiny.

A series of radical reforms, penalties and criminal enforcements have been proposed by the Senate’s Commission Inquiry (CPI) evaluating the economic and social impacts of the Bets Regime.

Just 19 weeks since the CPI commenced its evaluation, led by Senator Soraya Thronicke (Podemos–MS) and Dr Hiran Gonçalves (PP–RR), the rapporteurs have submitted their recommendations to the Senate.

The CPI was established to evaluate the economic liabilities and social threats of Brazil legalising online gambling since 1 January 2025.

The inquiry heard testimonies from operators, stakeholders and whistleblowers on wide ranging topics from fraud and match-fixing to money laundering, advertising malpractice and the absence of consumer safeguards.

Of significance, the inquiry hit national headlines after testimony concerning Virginia Fonseca, a social media influencer with over 50 million followers, who is accused of misleading advertising and acting as a financial beneficiary of unlicensed operators.

As reported by SBC Notícias, the CPI’s final report calls for 16 indictments, targeting both individuals and entities. Fonseca, alongside influencer Deolane Bezerra, is named in connection with promoting illegal betting operators, with the report stating it was “unlikely” that Bezerra “ceased to be an effective partner and simply became a spokesperson.”

The report proposes the criminalisation of match manipulation in sports be signed into federal law. An action to be governed by the creation of a ‘National Sports Integrity Authority’, that will oversee the regulation of automated systems used by betting platforms.

Algorithms, the report noted, often operate without independent certification, making it “difficult for the bettor to assess the real risk involved.” A technical audit protocol is proposed, under regulatory supervision, to ensure transparency in how odds and promotions are determined.

The commission warns that betting platforms have become conduits for illicit financial activities. Evidence presented to the CPI outlined the use of fragmented transactions, third-party CPFs, untraceable crypto operations, and withdrawals routed through accounts tied to Brazil’s social welfare schemes. To counteract these abuses, the CPI has recommended data-sharing protocols between the Federal Tax Authority, COAF, and licensed operators, as well as regular financial audits.

Brazilian football, a key beneficiary of betting sponsorship, came under heavy criticism. Club executives admitted they lacked integrity departments and were often unaware of commercial terms involving gambling partners, with many deals brokered through intermediaries. The commission labelled this state of affairs “institutional omission” and “structural unpreparedness.”

Digital influencers, a core channel for consumer engagement, were described in the report as central players in normalising irresponsible betting behaviours. As such, affiliate contracts linking influencer revenue to user losses were described by the commission as “anti-educational and perverse.” The CPI has formally requested investigations into these arrangements by COAF and Receita Federal.

The report further urges an outright ban on online casino-style games, denouncing them as “online slot machines with exclusively deleterious characteristics,” while calling for extensive reform of betting advertising, including:

Prohibition of gambling ads during prime-time TV
Bans on welcome bonuses and misleading promotions
Mandatory age and financial suitability checks for bettors

Additional proposals include embedding gambling addiction awareness and financial literacy into school curricula, alongside national prevention campaigns supported by the SUS, NGOs and “conscientious influencers.”

Despite being tabled, the report will not be voted on immediately. As SBC Notícias reports, several senators have called for more time to review its recommendations. CPI President Dr Hiran has since indicated that he will move to postpone the vote until the following week.

Political consequences now loom for Brazil’s fledgling Bets Regime. Last week, Finance Minister Fernando Haddad has backed a provisional measure to raise the GGR tax on licensed operators from 12% to 18%, as a measure to fill budgetary gaps of the PT government.

A pending tax hike underscores the government’s push for tighter fiscal and regulatory oversight, prompting a coalition of trade bodies to challenge a tax framework they argue imposes an effective burden exceeding 50%.

The publication of the CPI’s report and its pending vote bring a turbulent close to the first six months of the Bets Regime existence. With mounting headwinds of tax hikes, compliance demands and the threat of criminal sanctions, the competitive landscape of Brazil’s online gambling market is poised for reshaping in the second half of the year. The only certainty, it seems, is continued volatility of a fragile Bets market that has been radically transformed since its launch on 1 January.

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Croatia ties new ‘civic strategy’ to gambling overhaul

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Yesterday, a panel of community stakeholders declared full support for Croatia’s plans to overhaul its gambling laws and create a new regulatory regime to govern and tax gambling.

State Secretary Tereza Rogić Lugarić hosted a press conference with representatives of Croatian business, media, education and healthcare to encourage a wider participation in the government’s forthcoming overhaul gambling laws.

Of significance, hosted under the banner of “Fun in moderation – what you need to know about gambling” – stakeholders confirmed that they would cooperate in establishing a “National Strategy for the Prevention of Gambling Addiction to 2030.”

The gathering marked the launch of a far-reaching legislative effort, authorised by the Sabor (Parliament) in March. A mandate viewed as an executive intervention by Prime Minister Andrej Plenković. now in his third term, to make gambling reform a centrepiece of the HDZ government’s agenda.

The Plenković pledge
Following wide-spread criticism, many view this as the HDZ government’s admission of its systemic failure to protect 40,000 Croats from gambling-related disorders, a figure that rises alarmingly when one considers the younger population.

Research from the Croatian Institute of Public Health reveals that 73% of high school students have gambled at least once, with 13% already exhibiting signs of harmful behaviour.

Plenković’s government aims to arrest this trend with a strategy that is both legislative and cultural. The new gambling law, to be fully enforced by early 2026, introduces mandatory player identification for all gambling participation — whether online or in-person — and establishes a national self-exclusion register to protect vulnerable individuals.

Venues such as cafes and restaurants will be prohibited from hosting self-service betting terminals. Municipalities will be ordered to review the location of gambling establishments, which must now maintain minimum distances from schools and religious buildings. The government estimates that 50% to 60% of betting shops may be forced to relocate or shut down altogether.

Gambling advertising will be banned from television, radio and online platforms between 6am and 11pm. Promotions featuring celebrities, athletes, or influencers will be outlawed entirely. Print and outdoor advertising will likewise be curtailed. Digital operators will be held accountable for preventing underage exposure to gambling content.

State Secretary Rogić Lugarić was forthright in her rationale: “Technological progress has made gambling just too accessible. These measures are designed to reassert the boundaries of conduct and responsibility of gambling.”

However, yesterday stakeholders announced that gambling reforms would not simply be contained to policies. Cooperation is needed to launch a new National Strategy for the Prevention of Gambling Addiction 2030.

Gambling reforms take on civic duties
A five-year mandate that for the first time treats gambling harm as a behavioural health issue with social, economic and psychological dimensions. The strategy, developed in coordination with the Ministry of Health, the Croatian Institute of Public Health, and academic experts, outlines a comprehensive public health response.

It prioritises mental health support, early intervention in schools, media literacy, and international cooperation. “This is not a public relations exercise,” said Marko Babić of Hrvatska Lutrija.

“We are part of a European project, alongside the Council of Europe and nine member states, to study youth mental health and reduce high-risk behaviours such as gambling.”

The conversation also touched on the wider implications of the digital economy. Professor Predrag Pale, speaking on behalf of the education sector, warned of the collapsing attention spans among youth — a trend he believes makes them more susceptible to rapid-reward mechanisms like betting and gaming.

“Children today have access to everything, but are engaged by nothing,” he noted. “We are still teaching with 20th-century methods, while they are living in a hyper-connected 21st-century reality.”

The reforms coincide with the introduction of a progressive new tax regime. The current flat tax model, in place since 2010, will be replaced by a tiered system on player winnings, ranging from 10% on sums under €1,500 to 30% on those above €70,000. Licensing fees will rise sharply: land-based casinos will pay €600,000 annually (up from €400,000), while online operators and betting shops will see similar increases.

The state anticipates an additional €50–70m in annual revenue, with at least 11% ring-fenced for addiction treatment and prevention. The remainder will fund education, civil society initiatives, and healthcare.

Not everyone is convinced by the mandate. The Croatian Association of Gambling Operators (HUBPS) and the European trade group EUROMAT have warned that the reforms could jeopardise as many as 15,000 jobs and disproportionately affect small operators.

Ozren Kronja, representing Croatian digital publishers, voiced concern that the government’s heavy-handed approach might backfire.

“While Croatian media are being strangled with restrictions, Big Tech platforms are left to self-regulate,” he said. “The unintended consequence may be to push gambling adverts further into unlicensed, untraceable channels. We’ve seen this in Italy, where illegal digital casinos proliferated despite stringent laws.”

Balkan eyes on Croatia
Nonetheless, the government appears resolute. A new regulatory authority will be established to monitor compliance, oversee licensing, and enforce penalties. Operators that fall short of new standards risk fines and the revocation of their permits.

The Ministry of Finance has already trialled automated keyword-based detection to block access to illegal gambling sites. Now, it intends to go further by compelling payment providers to halt transactions to unauthorised operators.

The HDZ government has committed to a “calculated bet” on restructuring Croatia’s gambling sector, recognising the high stakes involved in achieving a balanced regulatory framework that serves all stakeholders.

Progress in Croatia is widely seen as a potential inflection point for gambling reform across the Balkans, where countries like Serbia, Montenegro, and Bosnia face similar failures and liabilities. As such, Croatia’s legislative trajectory warrants close attention from industry observers across the region.

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Industry pokes holes in Bulgaria online limits draft

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The Bulgarian sector has come out against government plans to introduce a number of restrictions on online gambling.

While agreeing that such conversations are a right step towards better player protection, a number of industry organisations came forward to deem the draft text ‘unviable’ in its current form as it limits player freedoms.

What’s the fuss about?
Last month, two of Bulgaria’s Ministries came out with a proposal to tighten controls around consumer engagement with the sector. Despite it placing the well being of players at the centre, however, another glance at the measures makes it clear why they might’ve come across as rushed by some.

For one, mandatory time limits would see individual game sessions being restricted to a maximum of four hours for over-24s, and two hours for everyone under that age. So far, so good. The texts however do not clarify whether these limits per 24 hours, or per session start.

Critics have pointed out that in its current form, the draft allows for players to reach the 3:59 hours mark, log out, log in again, and continue for another four hours – with amendments needed to address this loophole.

A more serious issue is the proposed mandatory exclusion of players. The text envisions a maximum loss limit within a 24-hour window that would be set by the player itself.

Subsequently, if the customer reaches 100% of that limit within that period, operators would be required to place that customer on the self-exclusion registry for seven days.

Industry feedback has highlighted this as problematic for two main reasons. First, this would constitute a breach of freedom rights outlined within the Bulgarian constitution. Secondly, if a customer has their access to legal options forcefully revoked, the risk of turning to the black market increases significantly.

And lastly, but perhaps the biggest head scratcher, is the proposed cap on online wagers. The brief, which as a reminder was approved by two Ministries, wants to set a 24-hour wagering limit of a maximum of 20 average monthly salaries – amounting to thousands of Euros.

This is certainly a precedent in the whole of Europe, and does not accurately reflect the economic landscape in Bulgaria – the poorest country in the EU.

Industry is baffled
Since the consultation’s deadline expired on 5 July, several industry organisations have provided detailed feedback – pointing out what is wrong with the draft while leveraging their expertise to recommend amendments to the proposal.

Association of the Gaming Industry in Bulgaria (AGIB)
In its statement, AGIB noted that the draft fails to introduce a centralised system that would simplify the implementation of player session limits and wagering caps. Currently, this is left as the sole responsibility of individual operators.

“This means that a participant who has reached their limits with one operator can immediately continue playing with another licensed operator,” the statement read.

Furthermore, it recommended clear indication that session limits are tied to the active participation of customers with a game, rather than to activity not considered as ‘playing’, i.e. logging in and out of an account.

On the above, AGIB also suggested that session limits should not be overarching, but tailored to specific types of play, bringing a distinction between online gambling and sports betting for example.

The body also believes that the forceful exclusion of players by private companies is an infringement on citizens’ “freedom of personal choice and economic freedom”, and that the matter should be handled by the regulator instead.

Bulgarian Gaming Association (BGA) and Association of Organisers of Gambling Games and Activities in Bulgaria (AOGGAB)
BGA and AOGGAB warned of an increased black market prominence if wagering and play limits are introduced by the government.

“Experience in all European markets…shows that mandatory restrictions on gaming on licensed betting sites do not lead to restrictions on the players’ gaming and limiting the risks for them, but redirect them to freely accessible unlicensed sites.”

Various reports were cited from international trade bodies like the EGBA and national ones like the Netherlands’ NOGA, as well as national regulators like Sweden’s Spillemyndigheden, highlighting that the black market has overtaken legal alternatives in market share across Europe.

“As a result of the restrictive regulations, the money of citizens in the Republic of Bulgaria, instead of being spent on entertainment on the regulated, protected licensed market, will flow to Curacao, Panama, the Philippines and other offshore zones, where illegal online gambling providers are most often located.”

Both NGOs also claimed a breach in EU law, as all listed technical requirements will affect companies headquartered in other European jurisdictions. Therefore, the draft needs to be approved by the European Commission.

State monopoly talks
Another proposal was recently submitted by the far-right political party MECH to introduce a monopoly on gambling under the state-owned Bulgarian Sport Totalizator (BST).

Speaking to the media, party leader Radostin Vasilev said that he views direct state intervention as the only viable solution to an effective control on gambling.

MECH is currently in opposition to the coalition government and has a small number of MPs, which will slow down any momentum for support behind their bill.

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UKGC places transparent terms on penalty determinations

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Due to a long spate of enforcement actions in the first half of the year, the UK Gambling Commission (UKGC) will undergo changes to the way it determines financial penalties.

The regulator stated today (10 July) that it wants to make the process more transparent, particularly around the steps taken to determine the seriousness of a regulatory offence, a matter highlighted to the Commission in previous industry consultations.

Fines, financial penalties and other enforcement actions are now going to be subject to a seven step process, with regulatory breaches ranked along five levels of seriousness.

The extent of a financial penalty will be determined by the gravity of the breach, based on the five levels, and the percentage of an operator’s yearly gross gambling yield or other income at the time the breach occurred.

John Pierce, UKGC Director of Enforcement and Intelligence, said: “We are making changes to strengthen the transparency and consistency of how we impose financial penalties.

“These proposals were subject to extensive consultation, and the views shared by all our stakeholders have been taken into account.

“The resulting changes will strengthen our decision-making and streamline the calculation of penalties – helping to improve the efficiency and effectiveness of our enforcement work.”

Commission clears up communication on enforcement
The UKGC is one of the most active regulators in Europe when it comes to enforcing standards across its industry. Given the vast scale of the British gaming industry, the often strict monitoring it engages in is necessary.

Headlines have often been generated as a result of the hefty penalties imposed by the regulator. Most notably, records were broken in 2022 and 2023 when huge penalties of £17m and £19m were issued to Entain and William Hill respectively for anti-money laundering and social responsibility shortcomings.

At the time, both gambling Plcs responded that the record penalties had been imposed on their business for the period of 2019-to-2020, prior to undertaking mandatory compliance changes on AML, customer care and responsible gambling.

This year has been no different. The past six months alone have seen the regulator take aim at Merkur Slots, the Football Pools, Corbett Bookmakers, SpreadEx and most recently Fafabet, issuing penalties of varying size.

With a focus on transparency, the UKGC is hoping to reduce the number of enforcement actions though, according to Pierce. The regulator hopes that the new process will encourage greater compliance with UK regulations, and catch out acts of non-compliance before things have to escalate to penalties or fines.

Additionally, the Commission has also clarified that penalties against society lotteries will not be determined by GGY or income. This comes amid a wider review of society lottery regulations, with the government evaluating whether to raise the limit on how many ticket sales these lotteries can make each year.

“Crucially, the new approach also encourages compliance at the earliest opportunity, supporting the protection of consumers alongside fair and proportionate outcomes for operators,” Pierce concluded.

“Where fines are imposed on society lotteries, registered charities or personal licence holders these will not be based upon a percentage of the GGY accrued during the breach period, rather an appropriate alternative will be used.”

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Safe Bet Show: Jennifer Shatley of ROGA on player wellbeing, prevention and the future of RG

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In this episode of Martin Lycka’s Safe Bet Show, we sit down with Dr. Jennifer Shatley, Executive Director of Roga (Responsible Online Gaming Association), for a conversation on the future of responsible gaming. With a unique academic background—especially her communications degree rooted in research and statistics—Dr. Shatley brings a data-driven mindset to her work. She…

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Newsletter: Problem gambling is falling, isn’t it?

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The UK Statistics Authority has warned the Department for Health and Social Care and the Office for Health Improvement and Disparities (OHID) about the misuse of suicide statistics. Disparities at the Office for Disparities: The statistics regulator also noted problems with the OHID report, which assumes:  Lies, damned lies etc: The issue of the misuse…

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Paddy Power Betfair attack shows extent and boldness of UK cybercrime

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Flutter Entertainment confirmed yesterday (8 July) that its Paddy Power and Betfair UK brands had been subject to a heavy cyber attack.

The respective sportsbook and betting exchange brands were targeted by cyber criminals who were able to access information like emails and account names.

It is understood that a significant number of customer accounts were targeted. However, Flutter stated that serious information like passwords, ID documents and payment details, were not accessed by the cyber attackers.

“We can confirm that our Paddy Power and Betfair businesses have suffered a data incident involving personal information for some of our customers,” a Flutter statement provided to SBC News read.

“Immediately upon becoming aware of this incident, we informed relevant regulators and authorities and initiated a full investigation, supported by external IT security experts, to understand what happened and how we can better protect our networks and customers.

“The unauthorised access has been removed and the incident contained. Our investigation concluded that the affected information was isolated to limited betting account information. No passwords, ID documents or usable card or payment details were impacted. We are informing all affected customers.

“Safeguarding and securing our customers’ information is of the utmost importance to us.”

The incident highlights the extent of cybercrime threats to online-focused businesses, with a huge range of companies subject to attacks over the past year, not just those in the gambling sector.

The British government’s Cyber Security Breaches Survey for 2025, for example, found that 43% of UK businesses reported a cyber security breach or attack in the past year – showing that Paddy Power and Betfair’s recent issue is hardly uncommon.

For companies like Flutter, which has access to one of the best tech stacks the industry has to offer as well as other important aspects like legal counsel, overcoming cyber security issues is a challenge – but not an enormous one.

For the many SMEs which make up both the B2C and B2B pillars of the betting industry, cyber issues may present more of a challenge.

According to a study conducted by Umazi, a digital ID platform, which was released the same day as the attack on Flutter, SMEs are the biggest victims of cyber criminality. The firm’s study found that 70% of SMEs are worried that business identity information and other data could be stolen.

“This isn’t a digital economy, it’s a digital illusion,” said Cindy van Niekerk, CEO and Founder of Umazi. “While regulators and corporates applaud innovation, SMEs are being left behind with legacy processes that actively undermine cybersecurity and economic growth.”

The British government, which is acutely aware of how big a contribution financial services make to its economy, has attempted to clamp down on cyber crime through legislation, such as the Product Security and Telecommunications Infrastructure Act.

These measures will provide some support to betting and gaming firms as much as any other digital business. However, the attacks against Flutter, one of the biggest betting firms in the world, showcases the boldness of cyber criminals and the extent of the threat faced by businesses large and small.

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NHS psychiatric morbidity survey reveals low rate of problem gambling and gambling participation

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The Adult Psychiatric Morbidity Survey (APMS) has published trends and insights on mental health and common disorders impacting the treatment of adults in the UK.

Commissioned by NHS England and Department of Health and Social Care (DHSC) the study provides insights and the prevalence of the UK’s nine most common mental health disorders including, depression, bipolar, psychosis, ADHD, OCD, trauma, phobias, drug addiction and problem gambling.

Among these, the APMS sheds new light on problem gambling—not as a standalone behavioural issue but as one frequently linked with deeper mental health challenges. Based on structured clinical interviews and a nationally representative sample, the survey finds that just 0.3% of adults in England meet the clinical threshold for problem gambling, with 0.9% of those who gambled in the past year affected.

This figure sits far below the 2.5% prevalence rate cited by the Gambling Commission’s Gambling Survey for Great Britain (GSGB) in 2023. That contrast has sparked debate over statistical rigour.

Gambling advisory Regulus Partners, has criticised the Commission’s handling of gambling regulation, argues that the GSGB “remains an outlier when compared to all other official statistics on the prevalence of harmful gambling stretching back almost two decades.”

The APMS, in contrast, offers a clinical, methodologically transparent account. Its true value lies not in prevalence comparisons, but in its analysis of comorbidity: the strong and consistent overlap between problem gambling and psychiatric disorders.

Mental Health applies across all data

Problem gambling in the APMS is revealed to be tightly interwoven with mental ill-health. Adults identified as problem gamblers were substantially more likely to report symptoms of depression, anxiety, PTSD, OCD, and suicidal thoughts or behaviours. They were also more likely to experience problem debt, unemployment, domestic violence, or trauma.

“Problem gambling, although rare, is consistently associated with a greater burden of psychological, financial and social distress,” the report concludes.

The survey also shows that problem gamblers are more likely to be receiving counselling or psychiatric medication, suggesting that they are already visible within the health system—but perhaps not always recognised through the lens of gambling-related harm.

Sharper focus on shrinking base…
Interestingly, the APMS also finds that gambling participation in the UK is declining. In 2023/24, only 43% of adults reported gambling in the previous year—down from 66% in 2007. While public discourse often implies a growing epidemic, these figures point to a contraction of gambling participation, not its expansion.

This long-term trend undermines claims of gambling “normalisation.”

The implication is not that gambling has ceased to pose a public health risk. Rather, as fewer people gamble, harm may become more concentrated among a smaller, more vulnerable population—often overlapping with those already experiencing mental health challenges.

Framing the evidence
Much of the friction between APMS and GSGB findings can be explained by methodology. The APMS relies on face-to-face household interviews and clinically validated tools, providing a more stable basis for tracking trends over time.

The GSGB, by contrast, uses online self-completed questionnaires, which are cheaper to run but more prone to response bias. That does not invalidate either approach—but it does caution against treating all figures as equally reliable.

Problem Gambling Prevalence: APMS vs GSGB vs HSE (2018)
A comparative graphic that illustrates how survey design can shape outcomes.

Policy must be grounded in evidence
The APMS issues a stern warning: problem gambling is a mental health concern first, and a regulatory issue second. On that basis, it points—indirectly but firmly—to two policy priorities:

Mainstream gambling screening in mental health services
Practitioners in NHS mental health and primary care should routinely assess for gambling harm—particularly among patients presenting with depression, anxiety, trauma, or financial distress.
Focus interventions on high-risk groups
Public health strategies should prioritise the small subset of individuals at highest risk, rather than applying generalised restrictions. This includes tailoring support across healthcare, addiction services, and financial counselling.

The APMS confirms that problem gambling is not a widespread epidemic, but for a narrow group of individuals, it is profoundly damaging. Recognising this comorbidity with mental illness is the first step toward targeted, effective policy. As the availability of rigorous national surveys shrinks, the clarity offered by this one should not be wasted.

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UKGC puts frictionless financial checks at the heart of safer gambling strategy

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The UKGC seems as confident as ever in how it has crafted one of the key measures of the UK Gambling Act review, emphasising that financial vulnerability checks are turning out to be as “straightforward as possible”.

Last week, Helen Rhodes, who is the Commission’s current Director of Major Policy Projects, gave a speech which set out a more refined, data-led vision for player safety, including an update on what has been learned from the pilot of financial checks.

In August last year, the UKGC began rolling out what it calls ‘light-touch’ vulnerability checks using publicly available data. These checks were a key measure of the Gambling Act review, seen as a means to protect customers against potentially unsustainable gambling spending.

Initially set at a threshold of £500 in net deposits over a 30-day rolling period, the limit was lowered to £150 from February 2025. These checks were designed to operate with what the UKGC described as “minimal friction”, something betting stakeholders have been adamant is an absolute necessity.

During stage one of the pilot, around 95% of financial vulnerability assessments were completed what the UKGC described as frictionlessly, which then rose to 97% in stage two. These figures exceed the 80% frictionless completion rate estimated in the 2023 Government White Paper.

Black market concerns
The news comes in the midst of industry demands to see greater consistency when it comes to financial risk checks. Concerns that these checks could turn more gamblers towards black market betting if not carried out in a frictionless and simple manner are long-running, dating back to the initial conversation around affordability during the 2020-2023 review of UK gambling regulation.

BGC CEO Grainne Hurst recently explained on SBC’s Safe Bet Show podcast that obstacles such as this wouldn’t see customers stop using the products they like, they’ll just decide to stop using the products they like in the regulated sphere, and they’ll go elsewhere to get those products.

She added: “In the black market, where there’s no regulation, they pay no tax, there’s no player protection whatsoever.”

Meanwhile, the UKGC has previously reiterated that finance risk checks’ should not be considered ‘affordability checks’.

In May, the Commission explained: “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.”

A turning point?
What sets this new approach apart, Rhodes emphasised, is that it avoids blanket affordability checks. Rather than testing if every punter can afford their spending, the Commission’s model hones in on those who may already be financially at risk.

The goal is not to interfere with the vast majority of players who gamble safely, but to step in early where harm is most likely, the Director asserted.

In stage two of the recent pilot, around 3% of assessments could not be matched, improving on the 5% unmatched rate seen in stage one. Both percentages are significantly lower than the 20% rate without frictionless assessments predicted in the White Paper.

Having now moved into the analysis phase, the Financial Risk Assessments are designed to identify a specific group of customers: those who are not only spending large amounts, but also showing signs of worsening financial distress.

This can include red flags such as multiple arrears, defaults or evidence of bankruptcy.

Continuing her speech, Rhodes said: “The pilot findings represent a significant step forward, and our analysis phase will enable us to further explore how operators could embed assessments into their overall customer interaction approaches and how to reduce unnecessary inconsistency between credit reference agency reports.”

Looking ahead, the Commission is analysing how these financial checks can be embedded more smoothly into the customer journey.

Rhodes was keen to stress that the regulator remains open to industry feedback, mentioning that nearly 1,000 responses were submitted during the consultation.

By anchoring its reforms in financial vulnerability rather than broad affordability, the Commission is signalling a more balanced and targeted approach, making financial vulnerability checks no longer “an afterthought”.

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