Tory peer becomes latest to heap pressure on Gambling Commission’s affordability checks
The Conservative Party’s Nick Herbert has joined the long list of figures to hit out at the Gambling Commission’s affordability checks for the UK.
Speaking at the House of Lords, the former MP for Arundel and South Downs and Baron of South Downs called on Culture Secretary Lisa Nandy to revisit the “ill-targeted policy, which, after all, was not the government’s in the first place”.
With the speech, he has become another member of what seems to be an ever-growing list of people making noise to prevent these checks from coming into place, which includes gambling reformist James Noyes and Reform UK leader Nigel Farage.
The Gambling Commission are set to meet regarding the implementation of Financial Risk Assessments (FRAs) tomorrow, the second and most stringent level of its affordability check solution, but Herbert has urged for a halt on this.
“On Thursday, the Gambling Commission will decide whether to approve the roll out of affordability checks on online betting,” he said.
“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.”
The Gambling Commission initiated a six month pilot of its affordability solution last year, trialling both the light Financial Vulnerability Checks and the more extensive FRAs.
Criticism from both industry and political circles has not abated, however.
“The risks are akin to that of playing National Lottery scratch cards. Should these be restricted too?” Herbert said 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 plead to the Commission for a pause to the rollout, but there is a feeling that this backlash from certain key figures has all come a little too late.
There have been some people and organisations in the industry who have been long-term opponents of the checks, however.
The Betting and Gaming Council (BGC), a critic of the measures since the early days of the Gambling Act review back in 2021, this week confirmed to SBC News that it was considering legal action to prevent these.
A spokesperson for the BGC said: “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 backlash from many, the Commission has stood firm on its stance that only 3% of active accounts will trigger checks, with the remaining being frictionless.
FRAs have been trialled on bettors staking £1,000 in 24 hours or £2,000 in 90 days – the equivalent of £22 a day.
But these have continued to yield critics, this week from Farage, who claimed that they are “killing traditional bookmakers” and “driving the industry underground”.
Last week, it was the turn of the abovementioned Noyes, who left the Gambling Act Review Evaluation Advisory Group following concerns over the checks and a fear that a review of them had fallen on deaf ears.
While he remains a proponent of affordability checks as a whole, he penned a letter to Nandy last month after becoming “deeply concerned by recent reports which have highlighted the pilot’s apparent lack of transparency and efficacy”.
The Commission appears likely to press on with tomorrow’s decision making process despite the outcry from many a figure, and Thursday 21 May looks set to be a monumental day in the history of UK gambling, whether for right or wrong reasons.
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