Can affordability checks be a source of acquisition? (Spoiler - the answer is yes)

Today, many gambling operators exclude a number of potential new customers before they stake a single penny. And in many cases, there is absolutely no reason to do so. 

Fortunately, it’s now possible to take the guesswork out of the process and allow players who would otherwise be excluded to play: and crucially, play safely. Let’s find out how.

The trouble with passive checks

Most gambling businesses exist to make money. But they have a regulatory obligation, and in most cases a genuine desire, to protect players who are either vulnerable or simply cannot afford to gamble at a certain level. 

For this reason, checks are usually performed early in the lifecycle on every newly registered customer to ensure that they do not fall into either of these categories. These checks include (but are definitely not limited to):

• Establishing average income levels for the area in which a customer lives
• Basic credit score checks, and
• Checking for defaults, bankruptcies, court judgements in the individuals past

All these checks have two things in common. The first is that they are passive: the customer themselves does not know they are happening, or what ‘score’ is returned. The second is that, when it comes to accurately determining the risk profile of any given customer, they aren’t particularly accurate.

We’ve talked before about one way in which this lack of accuracy hurts gambling operators. But consider another. Something like 5 to 10 to percent of new registrations (and we’ve heard as high as 15%) are flagged ‘red’ after passing through these checks. And for many operators, that signifies the end of the relationship.

They have, in effect, lost 10% of the acquisition they paid for before a single bet is placed. I think it’s time to ask if they are doing that based on accurate information, or just guesswork. To give one simple example, an individual in rude financial health can have an account closed simply because they missed a loan repayment years ago.

Enter real financial data

It isn’t a surprise that in the past, quite rightly, a ‘red’ score