Operators are between a rock and a hard place on data usage

As gaming operators try to address the key issues of responsible gambling and social responsibility, different sets of regulations seem to be pulling the industry in opposite directions.

The EU’s General Data Protection Regulation (GDPR) comes into force from May 2018, and essentially calls for operators to limit data to what is necessary. This means they may be severely restricted in what data they use, and how they use it. Yet, current processes for Anti-Money Laundering (AML) and the regulatory requirements to address responsible gaming are doing the opposite: requiring operators to use ever more data to get the most accurate and reliable results possible.

There’s a distinct lack of advice from the gambling regulatory bodies about how to manage this change. Operators are very familiar with managing customer information in line with AML regulations, but are still unclear about how the new data protection regulations will affect these processes. Regulatory conflict is a real danger, and it may hinder the industry’s drive to protect consumers and promote responsible gaming.

In the United States, gaming regulators are much more prescriptive. Licence holders may claim that it restricts their freedom, but at least they’re clear about what they want operators to do. For once, UK operators may not mind being told how to run certain aspects of their business.

With so much uncertainty, there needs to be more collaboration between operators, industry stakeholders and regulators, so that when the forthcoming regulatory changes hit the industry, there can be minimal disruption. Only if we all work in close partnership will the sector be able to navigate the upcoming period of dramatic change.

Another big data change is coming

As noted above, but the Gambling Commission recently announced its three-year strategy, focused on enabling responsible gambling and identifying problematic behaviour. To do both of these things well requires operators to assess their use of data.

If I have a criticism of the industry, it’s the unwillingness or inability of stakeholders to share customer data. Nearly every other regulated industry shares data to ensure compliance and protect customers, but it is noticeably absent in ours. New laws, such as the self-exclusion scheme, provide an opportunity to explore and define the benefits of sharing customer data.

The GAMSTOP launch, due in Spring 2018, will be a first step towards operators sharing data to meet the aims of the Gambling Commission’s license conditions and code of practice.

Responsible gambling is also open to interpretation. The use of identity and ‘know your customer’ data plays a key part in maintaining compliance in this area too. It’s another instance where you would expect the regulators to help operators navigate the changes.

The bonus is, using data better won’t only enable operators to comply with the new regulations and with the Gambling Commission’s drive to promote responsible gambling; it will also help them to know their customers and engage much more effectively.

The Gambling Commission has made itself very clear about its focus for the next three years and the scrutiny on the industry will continue. Operators need to act swiftly on its guidance, as the general feeling amongst the industry is that we are not far from licences being suspended or revoked.

That said, I’d like to appeal to the regulators to be much clearer with the operators about how they should handle their data. They clearly want to stay compliant and drive responsible gaming, but they need help to do so. With clearer advice and better data sharing, the future can be brighter for the whole industry.