Discussing Gambling Regulations in the UK: Predictions of Affordability Checks in 2024 - Can We Anticipate a Clear Path Ahead?
Year's End Approaches With Regulatory Debates Over Financial Risk Checks Still Raging
Stepping into the new year, we're casting our gaze forward, offering up some educated estimates about the future landscape of player protection in the gambling industry. While some of these predictions might seem laughably off-target by this time next year, a solid chunk of 'em probably won't.
So, without further ado, here are four predictions for 2024 from Tom Farrell, Chief Marketing Officer at ClearStake:
Clinging to the Status Quo
Let's kick things off with our faithful companion, 'nothing'. More precisely, I predict that by December 2024, we'll still lack any decisive guidance on how financial risk checks should be executed, and no universally accepted UK Gambling Commission-mandated system will be in place.
Fact is, a petition boasting over 100,000 signatures opposing affordability checks has landed in parliament, putting the debate on the table. Yet, clarity on when and how these checks will be implemented is as foggy as ever, and to make matters worse, 2024 is an election year.
It's unlikely we'll see markedly more clarity in December 2024 than we do now. One thing I am certain of, though: the requirement to conduct these checks, in place as of now, isn't going anywhere. Nor do I think a Labor government would reverse course on this front. If anything, they might speed up the process.
In light of all this, don't spend another 12 months hemorrhaging customers while you wait for the UK government to take action. Instead, act now and establish nimble, secure processes that aim to keep as many customers as possible on board.
Consolidating Financial Checks
In our travels, we've observed a growing recognition that source of funds and financial vulnerability checks essentially boil down to scanning the same financial documents around the same customer milestone. However, government, regulators, and opinion leaders persist in treating these checks as separate tasks.
We anticipate that will change. By considering all checks involving financial data (bank statements) as a single responsibility, we can simplify the customer experience. The technology to perform these checks rapidly and securely exists today, and there's no reason why this data can't be gathered at any point in the customer journey, even during onboarding. We expect the language will evolve to encompass terms like "financial compliance checks" or similar. It's about damn time!
Open Banking Adoption Skyrockets
A stealthy revolution is unfolding in the UK, in spite of the occasional 'Open Banking is failing to take off' articles that pop up. In the real world, though, British consumers are showing a keen interest in Open Banking.
In 2023, over 11% of British consumers opted for Open Banking. Compared with the previous year, Open Banking-enabled payments more than doubled. Almost every operator now supports—and even encourages—the use of Open Banking for deposits and withdrawals.
And yet, we still hear people who should know better voicing doubts that the public is ready to embrace Open Banking. At this stage, such opinions are starting to look a bit daft. When Open Banking usage doubles again in 2024, such views may well disappear. Open Banking offers myriad advantages to both consumers and businesses, extending beyond financial vulnerability checks.
International Collaboration intensifies
To an outsider, it might seem that the UK is solely grappling with managing the potential harm linked to gambling. But the reality is far from that. In fact, the responsible gambling narrative is gaining traction across the globe, and it's set to accelerate in 2024.
In terms of major markets, expect the first serious moves around financial vulnerability in both Australia and the US (or, more specifically, within individual states, which will lead the way for the broader US market). The conversation has already begun, and 2024 will likely mark the beginning of UK-style regulations and expectations for operators to ensure not only that funds are legitimate but also that a given gambler's behavior is sustainable.
In sum, while the UK might be standing still in one sense, significant shifts are imminent on a global scale. Keep this piece bookmarked and revisit it in 12 months to let me know if I was off the mark... or spot on.
- Las Vegas, known for casino-and-gambling, will witness a surge in new casino-games and sports-betting trends, as innovators strive to attract more players, capitalizing on the growing gambling culture.
- Amidst the booming casino-industry, casino-personalities such as Tom Farrell will continue to shape the future of gambling, with their insights and strategies setting new standards for player protection and responsible gambling.
- In the midst of this ongoing revolution, lotteries, both traditional and digital, will experience a resurgence, offering big-wins to lucky participants and contributing to the overall growth of the gambling industry.
- Despite the growing focus on entertainment and big-wins, the issue of financial risk checks and financial compliance will remain a focal point, with regulators worldwide collaborating to implement clear guidelines and regulations that promote responsible gambling.
- As the international gambling market expands, sports-betting, fueled by advancements in technology, will gain significant traction, driving the growth of the industry, while also posing challenges in terms of player protection and responsible gambling practices.
