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Compliance Updates

Bet on Compliance: Navigating the Stakes with the UK’s Affordability Checks

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By Isabelle Zanzer, Senior Regulatory Compliance Specialist at ComplianceOne Group

Feeling like the deck is stacked against you with all these talks of financial checks in gambling? Wondering if this new game plan will leave your privacy on a losing streak? If so, no need to bet on uncertainty anymore. We’re here to deal you in on the UK’s latest gamble towards responsible betting. Let’s shuffle through the details and lay our cards on the table, as we make sure you’re holding a winning hand in understanding what’s in play. Ready to roll the dice and dive in? Follow me.

On July 26, 2023, the UK Gambling Commission launched consultations on proposed reforms in the Gambling White Paper, focusing on areas like direct marketing, age verification, game design, and financial risk checks. This article delves into the latter, highlighting new financial vulnerability and risk assessments to safeguard customers.

The UK’s consultation introduces two checks for gambling: light-touch financial vulnerability checks and detailed financial risk assessments. The first tier of checks is designed to identify financial vulnerabilities such as bankruptcy orders or significant debts, using publicly available data. The second tier involves enhanced financial risk assessments triggered by significant losses, requiring more comprehensive scrutiny of a customer’s financial situation.

Thus, in simple terms, what is going to happen at the heart of the UKGC’s new measures are two-tiered affordability checks designed to assess the financial vulnerability and risk of consumers engaging in online gambling. The first tier involves unintrusive checks that will be triggered when a customer reaches a specified net loss within a rolling period, using publicly available data to identify potential financial vulnerabilities. To dive a little deeper, this check will be conducted if a customer either has net losses of £125 in a rolling 30 days or £500 within a rolling 365 days. It would need to include “at a minimum a customer-specific public record information check for significant indicators of potential financial vulnerability”, including whether the customer is subject to things such as a bankruptcy order, county court judgment, or individual voluntary arrangement. Net loss would be defined as loss of deposited monies with an operator, not counting restacked winnings or bonus funds.

The second tier represents a more detailed assessment of financial risk, which is activated at higher loss thresholds. A comprehensive financial review is required for gamblers with significant losses, examining their financial data including credit status and spending. If third-party data is unavailable, operators may directly seek customer consent for access, ensuring a thorough understanding of financial health.

The gambling industry’s reception of these checks has been cautiously optimistic, particularly regarding the initial, less invasive tier. However, the prospect of more detailed financial assessments has sparked debate, not only among operators but also among consumers wary of privacy infringement.

As the UK gambling sector adapts to these new regulations, the challenge will be to strike an optimal balance between safeguarding consumers and maintaining the operational viability of gambling platforms. The pilot study represents a critical step in this process, offering valuable insights into the practical implications of affordability checks and the potential need for adjustments in response to industry feedback and consumer concerns.

The outcome of the pilot study and subsequent parliamentary debates are pivotal in shaping the future of affordability checks in the UK gambling sector. As operators, regulators, and consumers navigate these changes, the overarching goal remains clear: to foster a safer, more responsible gambling environment that protects consumers from financial harm while ensuring the industry’s sustainable growth.

Striking the right balance in the new UK gambling regulations is like walking a tightrope. With the introduction of light-touch and in-depth financial risk assessments, operators may face the challenge of protecting players without overstepping into their privacy. These two-tiered checks aim to shield those at risk, using both public data and deeper financial insights.

The key here for operators will be to navigate these waters carefully, ensuring player safety while keeping the game fair and enjoyable. Now, when trying to find a balancing act, we need to consider the following:

  1. Regulatory Compliance Risk: Reviewing the existing practices against the UKGC’s affordability check guidelines, identifying discrepancies, and recommending changes to align with the new regulations.
  2. Data Privacy and Security Risk: Evaluating the ability to handle and protect sensitive financial data in line with GDPR and other data protection laws.
  3. Operational Risk: Assessing the impact of the new checks on daily operations and customer interactions.
  4. Financial Risk: Analysing the potential financial implications of the affordability checks on revenue and customer base.
  5. Reputational Risk: Considering the public and customer perception of the affordability checks, especially regarding privacy concerns, the key here, like in all relationships, is communication. For example, it is estimated that just the very highest spending 3 percent of accounts would undergo financial risk assessments. Most financial risk assessments – at least 80 percent – would be carried out through credit reference agencies. The checks are expected to be frictionless and not interrupt the customer journey unless concerns are raised. It is estimated that a further 10 percent of risk assessments will be done through limited data-sharing through third-party open-source banking, which is similarly straightforward from a customer perspective.

Finding this balance involves a tailored approach as one offered by ComplianceOne group, whereby operators can personalize checks based on individual player profiles, ensuring those at higher risk receive the attention they need while others continue to enjoy their play with minimal interruption. It’s about creating a safety net that catches those in need without trapping everyone else in unnecessary checks. The key to a winning strategy is the execute this balance, and understanding what is at stake: Reputation, Sustainability and Trust.

The post Bet on Compliance: Navigating the Stakes with the UK’s Affordability Checks appeared first on European Gaming Industry News.

BMM

BMM TESTLABS PROMOTES SACHA MCLAUGHLIN TO VICE PRESIDENT OF GLOBAL QUALITY ASSURANCE

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BMM Testlabs, the world’s original gaming test lab renowned for exceptional product compliance and certification services, today announced the promotion of Sacha McLaughlin to Vice President of Global Quality Assurance.

BMM’s President of Land-Based Gaming & Inspections, Kirk White, said, “Sacha has consistently demonstrated exceptional leadership, operational excellence, and a customer-first attitude. Her experience and passion will be critical as we continue to grow our QA services to meet the always-evolving needs of the global gaming industry.”

With over 18 years of experience in software implementation and seven years in the gaming industry, McLaughlin brings extensive knowledge of both agile and waterfall development methodologies, test planning, project management, and cross-regional team leadership. She is recognized for her ability to build and scale QA organizations that deliver quality, speed, and value to customers.

McLaughlin joined BMM in 2018 and has held roles of increasing responsibility within the Company, most recently serving as Senior Director of Quality Assurance. Throughout her tenure, she has been instrumental in expanding BMM’s QA capabilities and helping customers launch products into the global gaming market more quickly, with a focus on regulatory compliance, functionality, fairness, and security.

The post BMM TESTLABS PROMOTES SACHA MCLAUGHLIN TO VICE PRESIDENT OF GLOBAL QUALITY ASSURANCE appeared first on Gaming and Gambling Industry in the Americas.

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Central Europe

Change of Chairmanship in the GGL Board of Directors as of 1 July 2025

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On the occasion of the four-year anniversary of the Joint Gambling Authority of the Federal States (GGL) on 1 July 2025, Sandro Kirchner, State Secretary in the Bavarian State Ministry of the Interior, for Sport and Integration, has taken over the chairmanship of the GGL Administrative Board, succeeding Reiner Moser, Head of Office in the Ministry of the Interior, for Digitalisation and Municipalities for Baden-Württemberg.

During Reiner Moser’s term as Chairman of the Board of Directors, the GGL further established itself as a reliable institution for the supervision and monitoring of the online gambling market.

“The online gambling market has developed rapidly in recent years. The GGL has met the resulting challenges with great commitment and can already demonstrate remarkable results both in combating illegal gambling and in regulating and supervising the legal market. The exchange between the states and the GGL is always trusting and results-oriented. I would like to sincerely thank the Board of Directors and all GGL employees for this constructive cooperation over the past year,” said Head of Department Moser.

State Secretary Kirchner takes over the chairmanship at a time when the GGL is pursuing ambitious goals, including stronger international networking, particularly to further curb the illegal gambling market.

“The consistent prosecution of illegal offerings and player protection are my highest priorities. The work of the GGL must continue to be significantly geared towards ensuring that the business model of illegal gambling is not profitable in Germany,” said Sandro Kirchner.

With regard to his role as Chairman of the Board of Directors, he added: “I look forward to continuing the successful work of everyone involved over the past four years. We will certainly continue to face many challenges. However, I believe the GGL is well positioned to achieve this.”

The Board of Directors is the supervisory and steering body of the GGL. It consists of the heads of departments or state secretaries of the ministries responsible for gaming supervision in the 16 member states. The chair of the Board of Directors rotates annually on July 1st in alphabetical order of the member states.

The post Change of Chairmanship in the GGL Board of Directors as of 1 July 2025 appeared first on European Gaming Industry News.

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Australia

L&GNSW Launches Compliance Campaign

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The Liquor & Gaming NSW (L&GNSW) has launched a compliance campaign focusing on external gambling signage and internal gambling related signage that is visible from the outside of the premises.

Inspectors will be engaging licensees and attending venues to assess compliance.

L&GNSW will be taking escalated enforcement action against any venue found not to be complying with the requirements.

From 1 December 2023, L&GNSW adopted a zero-tolerance enforcement approach regarding external gambling-related signage. This followed a compliance campaign which involved the removal of all external gambling related signage such as “VIP Lounge,” signage that includes dragon imagery or similar, and the removal of adopted imagery including images associated with gaming machines.

External gambling related signage at hotels and registered clubs are subjected to the requirements of sections 43 and 44 of the Gaming Machines Act 2001 NSW (the Act).

These requirements are in place to continue supporting gambling harm minimisation by reducing the visibility and promotion of gambling, particularly to vulnerable individuals and the broader community.

Venues that are not yet compliant should consult the 2023 Compliance Campaign: External gaming signage for hotels & clubs position paper or contact the Hospitality Concierge for additional information on the requirements.

L&GNSW recommends venues conduct self-audits to ensure their obligations and requirements in relation to the Act are met. A Gaming Harm Minimisation Fact sheet is also available.

Breaches of section 43(1) and 44(1) of the Act can result in on the spot fines of $1100 per offence or a maximum fine of $11,000 per offence if prosecuted.

The post L&GNSW Launches Compliance Campaign appeared first on European Gaming Industry News.

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