The topic of affordability is one that has been covered over the past decade multiple times in the gambling sector. With the gambling act set for review in 2021, the Gambling Commission is putting a clear emphasis on the need for operators to obtain an affordability solution which can provide data on an individual level without any cumbersome impact on the customer onboarding journey.
W2 regularly analyses what is happening in the regulatory space and we base a lot of product roadmap decisions anticipating the legal requirements that clients will be facing. When it comes to affordability, the frustration for us has always been that the data was available, but not obtainable for use.
But with the Gambling Commission intending to make a very clear statement with the upcoming gambling act review, we knew it was time to revisit affordability. Developing a service that operators can use to gain individual level insights on their consumers and ensuring that they are protected from spending what they cannot afford. But how does it actually work?
Affordability Levels
We are offering 2 levels of insight. At the first level, we will look to confirm that the income of the individual is more than the minimum risk level. If applied to all clients, this will give them a baseline for their portfolios, and of course, can be repeated at different risk levels, ensuring that the solution can map seamlessly onto existing player protection bandings that the client will have in place.
In addition to the confirmation that the income exceeds a certain level, we also provide metrics guiding player protection teams on the stability of the income. Mapping the affordability of the individual onto a simple affordability index, but also calling out any ‘shock’ events that have recently been detected.
As a final layer of protection, we broaden the net to provide geographic based metrics on the area that the player resides.
At the second layer of insight, we focus more precisely on the income element looking to confirm that the players declared income can be validated over a 6- and 12-month period. This step up gives more specific controls that gambling operators need in classifying customer risk and taking the appropriate actions.
Initially we will be providing the service via API real time requests however will very quickly be offering batch and portal access.
The whole team at W2 is really excited about the prospect of our new affordability solution and the resource it gives operators to enhance their compliance procedures. If you are interested in hearing more, contact us here.
