BGC unveils new voluntary industry code on customer checks to minimize request for private financial documents

The UK's Betting and Gaming Council announced on Wednesday a new voluntary industry Code on Customer Checks which will "raise standards while reducing the need for requests for private financial documents," according to a press release.

Developed jointly with the Gambling Commission and backed by the Government, this Code will operate as a voluntary interim scheme, seeking to bring consistency across the regulated sector for operators who adopt it. It will be in force until the frictionless financial risk assessments set out in the Government’s White Paper can be developed, tested and implemented.

According to an official release, in response to the ongoing debate around affordability, the BGC, Government, and GC "are taking action now to find practical solutions for online betting and gaming, giving greater clarity to customers and horseracing, while enhancing standards."

The new Industry Voluntary Code on Customer Checks sets out what interactions a BGC operator must take when customers wish to make net deposits of more than £5,000 in a rolling month and when they wish to make net deposits of £25,000 in any rolling 12-month period.

Under this Voluntary Industry Code, only customers wishing to spend over £25,000 in any rolling 12-month period may have to provide financial documents to demonstrate they are not at financial risk.

While this Code delivers progress on resolving the issue of intrusive document checks, the BGC noted it does not offer a complete solution. The trade body said that it is "actively working" along with the Gambling Commission on a new Code for Anti-Money Laundering checks, which also trigger document requests.

ICYMI - BGC announced a new voluntary industry Code on Customer Checks which will raise standards, while reducing the need for requests for private financial documents.

The code was developed jointly with @GamRegGB and backed by Government. https://t.co/FC4Am2fujo pic.twitter.com/AEKsUkSSDz

— Betting and Gaming Council (@BetGameCouncil) May 2, 2024

Michael Dugher, BGC CEO and Acting Chair, said: "This Code is good progress towards solving an issue that has generated such heated public debate. It will significantly increase the consistency of safer gambling standards while removing intrusive document checks for many who are currently subject to detailed checks. This should be particularly welcomed by British horseracing."

"While this is good progress in the right direction, we are acutely aware more needs to be done. So I wish to see a new Code on Anti-Money Laundering Checks to complement this Code on Customer Checks to raise standards on consistency and reduce the disproportionate need for document requests, rightly ensuring that betting with our members remains free from crime," he added.

Lucy Frazer

For her part, Lucy Frazer, Culture Secretary, commented: "Under the new interim code, there will be a reduction in the number of customers subject to the current inconsistent approach, as well as greater transparency and consistency across the sector. We welcome the work of the industry to agree on this voluntary code and its contribution to the Gambling Commission’s recent consultation on financial risk checks.

"Over recent months we have been listening carefully to the views of industry, horse racing, campaigners, charities and ordinary punters. We are committed to a balanced approach, which respects the personal freedom of the many millions of people who gamble without issue while protecting people from the potentially destructive impact of gambling addiction."

"While the interim code is a significant step, we know there is more to do, and the Gambling Commission is set to publish its response to the consultation on financial risk checks. This response will set out a new system of light-touch, frictionless financial vulnerability checks and a pilot of the enhanced risk assessments, and we remain committed to only bringing in these assessments if we are assured they will be genuinely frictionless for the vast majority of punters," she added.

Andrew Rhodes

Additionally, Andrew Rhodes, Gambling Commission Chief Executive, noted: "This voluntary code will help ensure a consistent and transparent approach for consumers across participating operators where customer spending is the trigger for action. The thresholds in the code represent a set of minimum standards agreed by operators, including backstops where they will consider and engage with customers where necessary.

"We think this code will help address the varying approaches from operators to customer spend triggers today, whilst we conduct a pilot on the use of the frictionless financial risk assessments that the Government proposed in their White Paper."

"Of course, operators remain under the obligation to meet other requirements to support customers at risk of harm. All the normal monitoring and action by operators where their customers may be showing signs of risk or harm remain the same and this can often be done in ways which do not involve document checks," he concluded.

This new Code will sit alongside the new Financial Vulnerability Check, which is expected to be approved in the forthcoming Gambling Commission response to their "Remote Gambling: Financial Vulnerability and Financial Risk" consultation last year.

It also operates alongside the current monitoring of all customer accounts for markers of harm such as chasing losses, unusual betting behavior, or betting at odd times of the day or night which, when triggered, may result in operators interacting with customers to ensure that they are betting safely.

While this new Code reduces the need to produce private financial documents, BGC says its members will continue to carry out "millions of customer interactions each year, signposting help to those who need it and promoting safer gambling tools like deposit limits and timeouts."

Under this new Code, between the threshold for Financial Vulnerability Checks and these upper net deposit limits, operators must carry out one or more of a range of interactions to assess vulnerability. Those include interactive questionnaires, telephone, and live chat interactions, requests to set a deposit limit, and sending an activity statement with a required customer acknowledgment.

This new voluntary Code reduces the number of customers who will have to submit documents and as an interim scheme will exist until the work needed to deliver truly frictionless financial risk checks promised in the White Paper is delivered. This interim scheme should help guard against the unregulated gambling black market online, says the BGC.

During the Cheltenham Festival earlier this year, Gambling Minister Stuart Andrew confirmed he would not support a new checks framework until he was assured they are frictionless and work.

Click here to see the full code.