Exploring UK Gambling Regulations: Anticipated Affordability Checks in 2024 - Aim for Transparency?
Another year improves, but financial risk checks still a sticking point in the gambling world
As the year winds down, we're eyeing up the future and making some educated guesses on what 2024 might hold regarding player protection in the gambling scene. Some of these predictions may seem off-base by this time next year, but here are four predictions for 24'24 from Tom Farrell, Chief Marketing Officer at ClearStake.
Lack of clarity extends
Leading off the pack at number one is everyone's favorite -- 'nothing'. More precisely, I anticipate that by the end of 2024, we'll still lack conclusive guidance around how financial risk checks should be performed, and no system implemented by the UK Gambling Commission will have become universally accepted. After all, a petition with over 100K signatures opposing affordability checks has made its way to the government, leading to further parliament debates.
Unfortunately, clarity on when and how these checks will be introduced isn't in sight, and the 2024 election year isn't going to help things move forward. It's highly unlikely that we'll see much more clarity in December 2024 than we do now. However, one thing I'm certain of is that the need for these checks, which already exists, isn't going away anytime soon. In fact, a Labour government could potentially speed up the process.
In essence, don't lose customers over financial checks by waiting for the UK Government to take action. Act now and put reliable processes in place that retain as many customers as possible.
Single checks become the norm
A pattern we've noticed is the increasing recognition that source of funds and financial vulnerability checks essentially involve reviewing the same documents at roughly the same moment in the customer journey. Yet, for some reason, these two types of checks are still viewed as separate tasks by government, regulators, and public opinion makers.
We think that'll change. By considering all checks concerned with financial data as a single task, the customer journey can be simplified significantly. The technology to perform these checks quickly and securely exists already, and this data can be collected at any stage of the customer journey, including onboarding. We expect the language to progress further, to a point where we discuss "financial compliance checks" or similar terms. It's high time!
Open Banking adoption skyrockets
A subtle revolution is happening in the UK. Despite the occasional news articles arguing that Open Banking is failing to make an impact, the British public is learning to embrace it.
In 2023, over 11% of British consumers used Open Banking. Compared to the previous year, Open Banking transactions more than doubled. Now almost every operator supports and encourages Open Banking for deposits and withdrawals.
Yet there are still individuals and organizations who insist that the public isn't ready for Open Banking. At this stage, such opinions sound outdated. When the use of Open Banking doubles again in 2024, we may see the end of these arguments. Open Banking remains a massive advantage to consumers and businesses alike, not just for financial vulnerability checks.
International cooperation intensifies
A passer-by might think that the UK is the only country concerned with managing the potential negative effects of gambling. However, that notion is far from the truth. Around the world, the responsible gambling narrative is gaining traction, and this momentum will only accelerate in 2024.
In major markets like Australia and the United States, we'll likely see serious discussion on implementing financial vulnerability regulations, comparable to those in the UK. The conversation has already begun, and 2024 will be the year when UK-style regulation starts to take effect, mandating not just that funds come from a legitimate source, but also that any given gambler's gambling habits are sustainable.
In conclusion, while the UK might appear to be stagnating in some ways, there will be significant changes globally. If my predictions are accurate, don't forget to bookmark this article and return to remind me next December how wrong I was.
- In the casino-and-gambling world, big-wins and potential risks continue to raise questions, with financial risk checks remaining a sticking point, as evidenced by the ongoing debates in the UK parliament.
- The casino culture, encompassing casino-games, lotteries, and poker, may witness a shift towards a more streamlined customer journey, as single checks, incorporating source of funds and financial vulnerability, become the norm, reducing complexity and promoting responsible gambling.
- Vegas-history and Vegas-myths might take a backseat as gambling trends lean towards technological advancements, with the adoption of Open Banking skyrocketing, enabling faster,more secure financial transactions and responsible gambling checks for casino-personalities both in the UK and internationally.
- The casino-and-gambling scene is not limited to Las Vegas anymore; the responsible-gambling narrative is gaining traction worldwide, with major markets like Australia and the United States set to intensify international cooperation, potentially adopting UK-style regulations to ensure financial vulnerability and sustainability in gambling trends.
- Despite predictions of stagnation in the UK, the gambling industry may see a significant change globally, with the emergence of new trends and regulations aimed at promoting responsible gambling and a safer environment for casino-games.
- tom Farrell, the Chief Marketing Officer at ClearStake, predicts that in 2024, the lack of clarity regarding financial risk checks implementation will persist, emphasizing the need for individual casinos to act responsibly and put reliable processes in place to protect their customers.
