Commons Committee Seeks Answers from British Regulator Concerning FRAs

The UK’s Chair of the Culture, Media and Sport Committee has written to the Acting CEO of the Gambling Commission, asking a series of questions about the regulator’s staged plan to introduce financial risk assessments (FRAs).

The FRA rollout

The plan to implement FRAs was announced by the Commission last week. The first stage of implementation will be carried out by the largest operators, where a high spend of multiple thousands of pounds across a 24-hour period is identified. For most players, this will mean a £5,000 net deposit in a rolling 24-hour period, which the Commission said less than 0.5% of players exceed.

Once fully implemented, FRAs will be applied to players aged 25 or older with net deposits exceeding £1,000 in a rolling 24-hour period or £3,000 over a rolling 90-day period. For players under the age of 25, the threshold will be reduced to £750 in a rolling 24 hours or £2,000 in a rolling 90-day period.

The questions in detail

In a letter to Acting Commission CEO Sarah Gardner, the chair of the Culture, Media and Sport Committee, Dame Caroline Dinenage MP, laid out five questions in an attempt to better understand the policy and its likely impact on consumers and the industry. The first of these focused on whether the Commission will publish a full dataset, evidence base and methodology that informed its decision to proceed with FRAs.

The second question included a request for the Commission to provide an estimate of whether these changes will result in more or fewer recreational bettors being asked to provide documents or other financial information, compared with existing arrangements.

In the third question, Dinenage said some stakeholders have told the Committee that engagement from the Commission throughout the process has been “insufficient”.

Dinenage has asked for the Commission to detail its activities taken out with operators, consumers, sporting bodies and other stakeholders during the development of the FRA proposals.

Fourth, the Committee wishes to find out how decisions have been made regarding participants in implementation groups that will be established over the summer to support the next phase of the delivery of FRAs. The Committee has asked for the criteria used to select invitees and organisations that will be represented.

Concern for racing industry

The final question focused on the racing industry. The Committee has been informed by stakeholders the racing industry will not be represented within the implementation groups, and wishes to know how the Commission intends to ensure the views of the racing sector are taken into account during implementation.

The British Horseracing Authority was scathing in its assessment after the FRAs were announced, with Chief Executive Brant Dunshea stating:

“[The DCMS] has failed to grip this process or properly consider the damaging consequences of the decision. A policy decision of this magnitude needed to receive parliamentary scrutiny, especially when other policies from the 2023 Gambling White Paper were passed via legislative routes.”

In a comment separated from her letter, Dinenage said:

“It’s important that people at risk of gambling-related debt receive appropriate support. At the same time, any regulatory change must recognise the significant economic contribution made by the industry.

"The Gambling Commission needs to be clear about how the assessments will work and should work closely with bookmakers to ensure new obligations do not impose undue burdens on responsible businesses.”

The Committee asked to see a response to its questions by Friday, 24 July.