Is Canada Next? The Growing Debate Over Affordability Checks in Gaming

For years, affordability checks have been a controversial topic in gambling regulation, often discussed but rarely implemented. However, the landscape is shifting. In August 2024, the UK Gambling Commission launched a pilot program for affordability checks, initially setting the threshold at £500 per month, with plans to lower it to £150 next month. While the UK government insists on a “light touch” approach, industry concerns remain over privacy, player friction, and regulatory overreach.

Although affordability checks seem unlikely in Canada, the UK’s developments raise the question: Could similar measures be introduced in Canadian gaming markets in the future?

Speaking at SBC’s Player Protection Day, Vixio’s Gaming Compliance Managing Editor Joe Ewens suggested affordability checks could eventually become standard, but implementation in Canada would be far from imminent.

“Some [customers] don’t like the idea of gambling operators being able to look into their personal finances. Also on a political front, in some jurisdictions, it’s crossed a political and ethical boundary around privacy and the right for people to spend their money as they wish.”

While affordability checks could theoretically help prevent problem gambling, they require a level of player engagement that could prove problematic, particularly in jurisdictions that emphasize financial privacy.

Currently, Canada takes a different approach. Rather than relying on affordability checks, regulators in provinces like Ontario enforce strict behavioral monitoring. Operators must track customer gambling patterns and intervene when warning signs emerge.

James Kilsby, Chief Analyst at Vixio, noted that similar behavioral intervention policies have been in place across several European markets for years and are becoming more common in gambling regulation worldwide.

“It’s been an obligation in the UK and several other European markets for several years, but what we are seeing as part of the trend is that it is becoming more common for regulations to directly mandate monitoring and intervention.”

Ontario’s Alcohol and Gaming Commission (AGCO) has been particularly strict in enforcing responsible gambling measures. Operators like PointsBet and Apollo Entertainment have faced six-figure fines for failing to meet monitoring standards.

While affordability checks have not yet been implemented, AGCO’s focus on player spending behaviors suggests that responsible gambling remains a priority for Canadian regulators.

A key concern for operators is that affordability checks could drive players toward unregulated gambling sites.

A 2023 SBC survey conducted with IDnow found that customer friction was already a significant issue. More than 50% of respondents cited a drop-off in sign-ups when players were asked for personal financial documents.

SBC Content Director Ted Menmuir noted:

“For those bettors unwilling to provide documents or who are wary of allowing a credit reference check, the chance to sign up with black market operators will become an attractive option.”

In Canada, consumer credit reports are already used for compliance. Operators rely on soft credit checks from agencies like TransUnion and Equifax to verify player identities, aligning with FINTRAC regulations. These checks do not impact a customer’s credit score.

However, in the UK, affordability checks include reviews of bankruptcies and personal debt, which would count as a “hard credit check” in Canada. This could negatively affect a player’s credit score, making such measures far less acceptable to consumers.

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With fundamental differences in financial systems between the UK and Canada, it would be difficult to apply the UK’s affordability model directly to Canada. However, Ontario’s proactive regulatory stance suggests that Canadian regulators will closely monitor the UK’s program.

While full-scale affordability checks seem unlikely, enhanced monitoring and intervention policies could continue evolving. As Canada looks to established gambling markets for regulatory guidance, it’s possible that discussions around affordability checks will intensify in the future.

For now, Canada’s focus remains on behavioral monitoring rather than direct financial assessments, ensuring a balance between player protection and consumer privacy.

Source:

, canadiangamingbusiness.com, February 12, 2025.