Concerns raised about gambling operators using open banking for customer affordability checks

Open banking has enabled individuals to share their financial information with third-party financial providers or services, which would typically be visible only to them and their bank. Recent social media posts have brought to light instances of gambling operators, like bet365, utilizing these third-party services to verify customers’ affordability and the legitimacy of their funds. Proponents of such third-party services argue that they streamline the process and eliminate the challenges often faced by bettors when providing personal financial information.

However, concerns have been raised about transparency and data protection, as the use of open banking requires customer consent. HBF chairman Sean Trivass expressed reservations about the use of open banking, stating that bettors are generally reluctant to disclose their personal details to bookmakers, whether through direct input or open banking. The HBF also voiced concerns about the safety of customer data and the terms and conditions in such cases.

The Gambling Commission confirmed that its rules do not mandate the use of open banking by operators. While some gambling businesses opt to offer open banking through an FCA-approved provider as an alternative to direct document provision for verifying identity, conducting anti-fraud or anti-money laundering checks, and addressing gambling-related concerns, they are required to use the information solely for the purpose for which it was collected and not for commercial purposes.