How Affordability Checks Safeguard Players and Ensure iGaming Compliance

When a fun game turns into uncontrolled spending, it is a loss for all. Therefore, affordability checks are not just a regulatory requirement but more so a protection for the stakeholders, like players and gaming companies. 

Think of a casino manager being very understanding in attending to a player who is addicted to gambling and has already spent all his money. The player is now attempting to trick the security system. This is a potential threat to the game’s integrity, and the casino may face regulatory consequences. Luckily, the gambling industry has affordability checks to lessen the impact. They guarantee a level playing field and enjoyment that is safe for everybody to enjoy while gambling responsibly.

The verification of identity is the primary step in the iGaming process. The processes of Liveness verification and document checks are the ones that facilitate verifying the identity of a player while at the same time protecting the platform from being a victim of fraud. The checks for affordability then see to it that the gambling habits of a player are within the limits of their financial means, that are not suspicious and are legitimate after the player’s identity has been established.

Such inspections carried out by the operators not only fulfill the requirements laid down by the authorities but also help the operators gain the players’ trust by offering them a risk-free environment to play in.

Why are affordability checks important in keeping your players and business safe?

Affordability or financial-risk checks ascertain if a gambler can keep his gambling behaviour to sustainable levels. The gaming operators are allowed by these checks to:

• Assess financial vulnerability: Screen for risk indicators such as credit alerts or insolvency markers, and where considered appropriate and with consent from the player, obtain calculations of disposable income via open banking or similar.
• Apply balanced checks: monitor at set deposit or loss limits before moving on to enhanced checks and possible source-of-funds requests. In the UK, from February 2025, the light-touch checks began to be applied at £150/30 days. 
• The following are restrictions: Apply spending limits, request certain documents, limit the sale of certain items, and possibly even suspend the accounts temporarily, where the risk is greatest.

While regulators increasingly focus on the protection of vulnerable players, affordability checks in gambling make sure that operators are proactively identifying risks before they escalate.

The Role of Affordability Checks in KYC and CDD

While KYC and CDD determine the identity of players and establish fraud risks, affordability checks determine whether people can actually afford to gamble, given their financial situation.

Within the interlocking structure:

• KYC means the verification of the identity and background of the player.
• Customer Due Diligence is a measure of money laundering risk and other possible criminal acts.
• Finally, the KYC and CDD methods used for risk assessment and monitoring are now complemented by the application of affordability checks as the last line of defense against developing gaming-related problems among customers.

The checks on affordability make sure that the gambler’s habits reflect their financial situation and do not bet more than they can afford. The UK Gambling Commission Summer 2023 Consultation Response has underlined the importance of affordability checks in addition to KYC and CDD. Such affordability checks are needed in order to estimate discretionary income, available for players to use in a responsible gamble once necessary expenses have been accounted for.

This holistic approach makes the operator compliant with the demands of KYC/CDD and protects the players by identifying their financial limitations.

What are the essential components that make the affordability checks successful?

It is important for gaming operators to monitor key factors that reflect the financial behaviors of players to carry out effective affordability checks. This encourages responsible gaming and maintains a healthier environment for everyone.

Deposit and betting trends: Operators should monitor frequency and value of deposits, in addition to the type of bet that is being placed. A sudden increase in either deposits or high wagers on a frequent basis could be an indication that the customer is betting more than they can afford. The UKGC identifies that ongoing, real-time affordability checks of those depositing substantial funds are critical to ensuring problems are identified as early as possible.

Time Spent Gambling: It assists in spotting instances of excessive behaviour that can indicate addiction or compulsive gambling.

Monitoring Behavioural Indicators: From a management standpoint, this refers to instruments for responsible gambling, such as cool-off, spending caps, and self-exclusion. These tools help operators to estimate whether the player is able to handle their gaming activities or may be a problem. 

Financial Context & Disposable Income: Operators are supposed to consider a player’s overall financial context, not only the money that remains after accounting for living expenses. According to the UKGC, an operator should base its analysis on disposable income; that is, funds available for non-essential expenditure, including gambling.

In this way, the affordability assessment becomes more contextual. On top of it all, this information will facilitate an even better understanding of the player’s financial situation for operators and enable early intervention.

Challenges of Implementing Affordability Checks

While the affordability tests for gaming are important, operators face a host of issues in effectively conducting them:

• Balancing User Experience and Compliance: Striking a balance between user experience and regulatory compliance is essential. Excessive verification methods, especially at the outset, may cause player irritation and disengagement from the experience. It is critical to develop a smart approach that balances compliance and user happiness.
• Privacy Concerns: The collection of detailed financial information required for affordability checks poses serious privacy concerns. Operators must ensure that the handling of sensitive data complies with data protection requirements, including the General Data Protection Regulation (GDPR).
• Operational Costs: Implementing real-time monitoring and periodical affordability assessments can be resource-intensive. For smaller companies, the financial burden of integrating such modern technologies may be enormous and even prohibitive.
• Regulatory Ambiguity: The regulatory landscape for affordability checks is currently evolving, resulting in some ambiguity in the laws. Operators must retain adaptability in the face of ongoing regulatory uncertainty.

Strategies for Successful Affordability Checks

Operators should observe the following best practices to make sure that gaming affordability checks function effectively:

• Employ multiple data sources: Behavioral data, transaction history, and financial data from open banking may be used together to form a complete picture in terms of the financial health of a player.
• Continuous Monitoring for Affordability should not be confined to the process of registration but must start right from onboarding to the activities of a player in order to attain early notice of changed behavior.
• Automate whenever possible: This will be beneficial since automated systems can identify risky behaviour, such as when expenses suddenly rise, without having operators perform manual activities.
• Provide Self-Regulation Tools: This gives players a chance to control their gambling behaviour by enabling them to establish limits, self-exclude, or take cool-off periods. This encourages gaming in a responsible manner.

How Technology Enhances Affordability Checks?

When it comes to lowering the cost of gaming, technology is revolutionary. AI-powered fraud detection, real-time analytics, and open banking allow operators to identify financial risk while delivering perfect player experiences. Building dynamic player profiles that adjust to gaming behaviour and offer enhanced security while adhering to rules is made simpler by these technologies. 

By incorporating contemporary technology into the affordability check procedure, operators will be able to enhance player safety while preserving a smooth and user-friendly experience.

How Facia Empowers iGaming Operators in Affordability Assessments

• Affordability checks assist iGaming companies in maintaining compliance and fostering player trust as rules become more stringent, guaranteeing a safer gaming experience.
• Facia simplifies the process of identity verification and financial checks by providing advanced biometric authentication, liveness detection, and fraud protection. Such solutions can support KYC, CDD, and affordability rules to facilitate a safe and responsible gaming environment. 
• Facia’s integrated solutions empower the operator to streamline operations related to compliance, providing a consistent player experience.
•  With the implementation of such innovative solutions, operators will be  able to increase players’ confidence in regard to ever-changing rules. 

Boost iGaming compliance and player safety with Facia’s AI-powered solutions. Get started today.