Gambling Commission: KYC is the key to effective oversight
The desire for player anonymity is a key black-market driver, what kind of regulatory initiatives are you looking to introduce with regard to ensuring anonymous betting?
Anonymity in gambling is a difficult topic because we think it’s really important for operators to know their customers, to put the right protections in place and to make sure each customer is not doing something they shouldn’t be – such as money laundering, for example. Clearly, with the proliferation of gambling online, players don’t have access to anonymity because they have to create an account o play and – in short – reveal their identity. Naturally, this has sparked a lot of challenges in the UK market as players will then turn to the unlicensed space.
However, this is why we have now introduced requirements for operators to interact with customers to make sure they know them. They can then understand what their play is like and what their habits are, to be able to put in place any protections they might need. This, again, links back to a wider initiative of trying to encourage customers to get to know their players better – to ensure they are protected.
Regarding the key point of affordability checks, is there an industry sector – such as payments – you think could help inform the Commission’s goal of building a frictionless affordability check experience?
Almost certainly, yes. That is also why we’re working really closely with various people who are actually in the financial services context, including both operational participants within the financial services industry and the Financial Conduct Authority, so that we can learn from them about what works and what and what doesn’t. This is because, at the end of the day, what we’re trying to do is introduce measures that are both targeted and well-informed to protect those who need help.
Of course, we’re also trying to make sure these initiatives don’t interrupt the player experience for people who are gambling happily and without the need for enhanced protections.
Do you think there is a trend of regulators becoming more concerned with user experience in the modern industry and, if so, can you tell us why?
Yes, I would say we are certainly interested in user experience
From a regulatory perspective, I can tell you that this specific interest would be centred around things like operator transparency and openness with the consumer. Essentially, we want to make sure the consumer knows what they’re getting into – so to speak. We want to make sure operators are being fair and open with their players, and explaining the offer that’s presented.
Precisely what we’re trying to avoid is hidden terms and conditions, unspecified caveats or sign-up fees. Alongside that, we also want to make sure the platforms in our market have tools to enable players to manage their gambling – giving them the ability to set limits, the ability to take time out and ensure an experience that can remain responsible above all else.
With the UK General Election betting scandal nearing its conclusion, it sparks an interesting parallel with the rise of prediction market election betting on the US Presidential Election. Do you see a world where the US prediction market operators could enter the UK?
Interestingly, prediction markets already exist in the UK. Of course, they don’t seem to be catching fire in the same way that they have in the US, but they are certainly interacted with enough to remain operationally self-sufficient. With our complete focus obviously being centred around the UK mark quite up to date enough with the latest developments in this area of the US landscape to comment definitively. However, put simply – betting is and always has been all about making predictions. Because of this fact alone, I would suspect prediction markets won’t be going anywhere anytime soon.
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