The UK Gambling Commission’s financial risk assessment (FRA) pilot has encountered hurdles around the reliability of credit reference agency data and the ability to provide checks without friction for most customers, according to an analysis by Mishcon de Reya.
Since August 2024, the Commission has been undertaking a pilot of the FRA scheme proposed during the build-up to the government’s 2023 White Paper. Under the proposed framework, licensees would consider an in-scope customer’s financial position using data obtained from credit reference agencies.
The intended approach is for assessments to be completed in the background, without requiring customers to provide information directly. Mishcon de Reya said the industry views the proposed assessments as affordability checks in all but name.
Questions over the pilot
The Betting and Gaming Council has said the pilot has not resolved questions over whether FRAs are reliable, proportionate or workable. The analysis also points to concerns about the consistency of credit reference agency data and whether checks can remain frictionless for most customers.
Mishcon de Reya said the Commission had provided limited indication of what it expects operators to do when an FRA identifies potential vulnerability or does not provide enough information for an assessment. The analysis said those issues should receive further consideration before any new obligation is imposed on the industry.
Regulatory and economic context
The pilot is concluding in a regulatory and economic environment that has changed substantially since FRAs were first proposed. Since 2023, gambling regulation has undergone a series of reforms, including financial vulnerability checks, changes to remote technical standards, a statutory levy, online slots stake limits, direct-marketing restrictions, and restrictions on mixed-product promotions and bonus wagering requirements.
According to Mishcon de Reya, those changes have added compliance obligations, restricted some operational and promotional activities, and created a more protective regulatory environment for consumers.
Remote Gaming Duty stands at 40% in 2026, while a statutory levy of 1.1% applies to most of the remote sector. Increased licence fees are expected to take effect in October 2026. The White Paper estimated that financial risk checks could reduce industry gross gambling yield by between £380 million and £710 million, although that estimate was produced in a different regulatory and economic climate.
The analysis argues that the Commission should consider the cumulative effect of regulatory reforms and the changed economics of the licensed sector when assessing whether FRAs are necessary and proportionate. It also says potential effects on regulatory certainty, consistency and customer journeys should be examined before implementation.
The Commission had indicated that it would shortly announce a decision on whether to implement FRAs as a licence condition for remote operators, according to the analysis. Mishcon de Reya argues that the problems identified during the pilot should undergo further analysis so that acceptable solutions can be developed before any requirements are imposed.
Source: Mishcon de Reya
Petra Vanhoof has spent the better part of a decade following the shifting tides of gambling regulation across Europe and beyond. She came up through the compliance side of the industry before pivoting to writing, which gives her a grounded, no-nonsense perspective on the rules, loopholes, and political maneuvering that shape how operators actually do business. She is particularly drawn to the gap between what regulators say and what the market ends up doing in response.