The DoT data covers anonymised raw bank transaction data from a representative sample of 90,000 people who made one or more deposits or withdrawals with a UK gambling operator in the 12-month period across a variety of verticals. However, it does not include lottery or free prize draws as those are not subject to the checks.
The financial risk checks came into force initially last August against a monthly net deposit threshold of £500, but this was lowered last week so operators are required to conduct a financial vulnerability check on players who have made £150 in net deposits in any 30-day rolling period.
Age group most likely to trigger checks is 35-39
DoT breaks down the sample by age group and additionally by those that meet the £150 net deposit threshold. The graph below shows the size of each age group demographic included in the total sample and the percentage of those in the age group that would trigger financial risk checks.
The 35-39 age group had the highest percentage of £150 or more net depositors, with 26% of the group hitting that threshold with at least one operator.
The 30-34-year-old group followed closely with 25% of the gambling sample hitting the threshold. The 40-44 age group followed with 24% and then 25–29-year-olds with 23%.
Looking at under 25s only, 21.5% of them will trigger at least one check versus 25.6% of over 25s.
Vast majority of deposits flagged for financial risk checks
Taking a closer look at gambling deposits, a total of £168m in deposits were made by the gambling sample as a whole.
Those that hit a £150 net deposit threshold collectively generated nearly 97% of gross deposits made to all operators within the year, meaning financial risk check candidates made up the vast majority of deposits made.
This suggests players that generate nearly all the income for UK gambling operators will be part of the light touch checks.
On average, an active gambler had net deposits of £54 a month and deposits typically once every two weeks across three operators.
This increased to five operators for those hitting the £150 net deposit limit. These players, however, don’t typically spend more per operator or deposit higher amounts.
When broken down by age group, 18-24s (with net deposits of £150+) gambled with up to 5.68 operators on average.
Of those that would have triggered financial risk checks, the average net deposit was around £211 a month. When broken down into those aged below 25, this average monthly net deposit drops to £142.64. For those over 25 it increased to £222.29.
Average income was higher for players triggering checks
DoT’s data also took a look at the average income for players in the sample. Overall the average annual income before tax was £36,614.43, this increased slightly to £37,157.84 when looking only at those with net deposits of £150+ per month.
When broken down by age group, those aged 50-54 (with a monthly net deposit of £150+) had the highest average income of £41,652.79.
There is no clear correlation showing that those who earned more gambled significantly more than those with lower incomes.
“Operators can’t afford to get this wrong”
Commenting on the data, DoT founder Charles Cohen said financial risk checks are introducing a crucial triage point that can help ensure that revenues are sustainable and players are being protected.
“This data shows both the impact and relevance of the light-touch financial risk checks at £150 net loss. Operators simply cannot afford to get this wrong because it’s clear that this is not just where the revenue is, but also the most problematic situations with customers,” Cohen told iGB.
DoT previously provided data on where gambling sits within UK consumers’ monthly leisure spend. The article can be found here.
Original article: https://igamingbusiness.com/tech-innovation/payments/dot-financial-risk-checks-to-hit-25-percent-of-uk-gamblers/
