Arbusers

Some days ago the UK Department for Culture, Media & Sport (DCMS) published what is called the Gambling White Paper that includes a big number of proposals for the future in gambling in the UK. The Paper has so many things to comment on, that we could write a small encyclopaedia. In this post I will extract the new policy on Source of Wealth checks expecting to start after September 2023.

I am quoting from the Paper:

''In general, this government agrees with the principle that people should be free to spend their money how they see fit, so we propose a targeted system of financial risk checks that is proportionate to the risk of harm occurring. Assessments should start with unintrusive checks at moderate levels of spend (we propose £125 net loss within a month or £500 within a year), and if necessary escalate to checks which are more detailed but still frictionless at higher loss levels where the risks are greater (we propose £1,000 loss within a day or £2,000 within 90 days). We also propose that the triggers for enhanced checks should be lower for those aged 18 to 24. Once a suitably effective and secure platform is in place, the Gambling Commission will consult on making data sharing on high risk customers mandatory for all remote operators. Individual operators can take steps to prevent harm on their own platform, but people suffering gambling harms often hold multiple accounts.''

As I understand, a daily loss of £1,000 or a loss of £2,000 within 90 days, whatever comes first, will trigger a ''frictionless financial risk check''. These thresholds will be lowered for those under 24, the market is already anticipating a halving. Once caught in these nets, players that will be considered as ''high risk customers'' will have their data shared across the board.

We wrote several articles about frictionless checks in the past, and we identified companies selling these checks as the next big thing in the gambling business. It is my belief the White Paper is about a very lavish contract that will be given to these (or one of these) companies.

For a financial affordability check to be completely frictionless, customers consent should already have been granted in order to comply with the operator’s Terms & Conditions. We believe that gambling operators will amend their Terms & Conditions in the days to come, to include this consent straight from the stage of registration. Old customers will have to click a button during summer to give their consent for these checks.

It is my understanding that frictionless financial risk checks will not stop the checks that comes with a lot of friction. Checks that require the customer to provide financial information and various documents, some times beyond any imagination, are considered a major invasion of privacy.

All in all, our forum supports every effort for those suffering gambling harms but there must be a limit when these efforts are used as an easy excuse to limit or oust winning players. To sum-up this part of the White Paper will make the life of a smart bettor even harder. Variance, winning and losing streaks, and a number of other factors, guarantee that even winning players will be caught in these nets.

For some, this might be a fig tree's leaf, but for some others it is another nail in the coffin.

a good summary of the state of the UK market. I see no way any sharp gambler can operate at scale in this scenario and envisage that by this time next year the UK will be finished.

Interesting you also notice the people lining up their 'charities' and Ltd companies for these lavish contracts. I am sure government ministers will also have their views on which companies incorporated only last year shall be given the eye watering sums of money the 'responsible' gambling campaigners are awarded from operator fines.

arbusers wrote: ↑

Thu May 11, 2023 7:45 am

In general, this government agrees with the principle that people should be free to spend their money how they see fit,

The advance of mascarated Communism in the UK continues.

treblepop wrote: ↑

Thu May 11, 2023 9:34 am

a good summary of the state of the UK market.

No, it is only a summary of this specific part of the White Paper. The Paper includes other parts as well that we must discuss.

arbusers wrote: ↑

Thu May 11, 2023 7:45 am

I am quoting from the Paper:

''In general, this government agrees with the principle that people should be free to spend their money how they see fit, so we propose a targeted system of financial risk checks that is proportionate to the risk of harm occurring. Assessments should start with unintrusive checks at moderate levels of spend (we propose £125 net loss within a month or £500 within a year), ...

Is this the so-called british sense of humour? Why this ridicolous statement of "free people" in "general followed up by one of the biggest exagerrations of paternalism i have seen so far. But I guess there is even more to come?

the gambling industry is just the beginning, the guinea pig. authoritarian financial data sharing and control will soon follow for larger industries. other countries such as Ireland have rejected this idea due to data privacy concerns but for some unknown reason, as described in the white paper, the UK government has decided its ok because it is a public 'health issue'. Now where have i heard these reasonings before......

I read all the posts in the forum in regards to the White Paper and I wonder who the original writer is. First name coming to my mind is Bet365.

They were calling it ''Source of Wealth'', not they will call it "affordability checks" makes no difference to me. This is not about protecting the underage, or vulnerable people. This is to protect the bookmaker from the winners and provide a layer of legality to their dubious actions.

There is an online petition. At 10,000 signatures, the government will respond to this petition. At 100,000 signatures, this petition will be considered for debate in Parliament. Petition ends November 9th 2023, but sign it NOW, developments will be irreversible within summer.

https://petition.parliament.uk/petitions/637571

arbusers wrote: ↑

Thu May 11, 2023 7:45 am

triggers for enhanced checks should be lower for those aged 18 to 24.

Why do they treat the age of 18 to 24 like they are not adults? They have the right to vote, to smoke, to drink alcohol but they can't bet their taxable income?
Really?

I wonder - do you believe that this will influence the operations of betting exchanges as well?
In a way, this might increase the profitability of making markets there.

arbusers wrote: ↑

Thu May 11, 2023 7:45 am

Assessments should start with unintrusive checks at moderate levels of spend (we propose £125 net loss within a month or £500 within a year),

So losing £1.37 per day triggers an assessment?
Is it the UK or Nigeria? Not looking to defame Nigeria of course.

ex-hft wrote: ↑

Mon May 15, 2023 12:03 pm

I wonder - do you believe that this will influence the operations of betting exchanges as well?
In a way, this might increase the profitability of making markets there.

Most probably not. Exchanges are also siding with this policy, as it is not only the commission players pay that makes profits.
Strict SOWs are requested by exchanges too.
I believe there will be only 2 winners.
a. The big bookmakers. And...
b. Unregulated bookmakers.

arbusers wrote: ↑

Tue May 16, 2023 9:18 am

ex-hft wrote: ↑

Mon May 15, 2023 12:03 pm

I wonder - do you believe that this will influence the operations of betting exchanges as well?
In a way, this might increase the profitability of making markets there.

Most probably not. Exchanges are also siding with this policy, as it is not only the commission players pay that makes profits.
Strict SOWs are requested by exchanges too.
I believe there will be only 2 winners.
a. The big bookmakers. And...
b. Unregulated bookmakers.

Time to open a regulated sportsbook in the UK then

arbusers wrote: ↑

Thu May 11, 2023 7:45 am

All in all, our forum supports every effort for those suffering gambling harms but there must be a limit when these efforts are used as an easy excuse to limit or oust winning players. To sum-up this part of the White Paper will make the life of a smart bettor even harder. Variance, winning and losing streaks, and a number of other factors, guarantee that even winning players will be caught in these nets.

Goojybooboo wrote: ↑

Tue May 16, 2023 4:49 am

So losing £1.37 per day triggers an assessment?

Are the pros and semi-pros outside the UK threatened by this nonsense? While recreational players who cannot control themselves will benefit, professionals and semi-professionals should buy a crystal ball from the fortune tellers to avoid a random loss of £1.37 and to protect themselves from variance and losing streaks.
Are the "winners welcome"-like offshores threatened by this policy, or even worse, going after the winners through this policy?