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Guidance

Advisory Board for Safer Gambling (ABSG) advice on proposals for a voluntary code on deposit thresholds

ABSG has given advice to the Gambling Commission in regards to the introduction of an industry measure using net deposit thresholds.

Published
4 February 2025

Last updated
4 February 2025 - Changes

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Contents

Introduction

11 April 2024 (revised 11 July 2024)

The Gambling Commission asked for ABSG’s advice on the introduction of an industry measure using net deposit thresholds. The advice requested was for the following:

  1. The potential impact on consumers and/or opportunities it may create within the regulatory regime.
  2. Insights from the academic literature in the UK and internationally.

Summary of our advice

We have conducted a thorough search of the international literature and have found scant evidence on this topic. Deposit limits are not widely used, and where voluntary deposit limits are set they have little impact on subsequent net losses. They are particularly ineffective with at risk consumers. The International lower risk gambling guidelines (opens in new tab) developed by a cross jurisdictional group of experts using all the evidence available make no reference to net deposit thresholds, concentrating advice aimed at lowering risk to gambling spend proportionate to household income, time spent gambling and type of gambling. The White Paper also makes clear that consideration of a customer’s financial context rather than fixed thresholds alone should form the basis of effective customer interaction.

This proposal is for a net deposit threshold set by operators and not a voluntary deposit limit set by consumers. We have explored levels of losses, spend and deposit associated with financial harm in the round. In our view the key issue is whether or not the threshold set could be regarded as protective for all consumers.

In light of the evidence, we do not support this threshold and we have set out our reasons for this in the following guidance. It is our view that the measure would have minimal impact as a harm reduction tool, particularly amongst those most vulnerable. The thresholds set are too high, the level of discretion too broad and the overall objective not based on robust evidence. We suggest more robust alternatives are possible.

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