RGC calls for financial institutions to step up efforts against gambling harm
The Responsible Gambling Council (RGC) has called upon Canada’s financial sector to take more of a ‘proactive role’ in combatting gambling-related financial harm.
Publishing a new white paper entitled ‘Opportunities for Impact: The Role of Financial Institutions in Mitigating Gambling-Related Harm’, the RGC noted that financial institutions are in a unique position to both understand the financial well-being of their customers and better strategise how to address gambling-related harms.
“The rapid expansion of regulated gambling in Canada requires an evolved response from our financial systems,” says Tracy Parker, SVP, Accreditation, Advisory & Insights at RGC.
“By adopting tools already proven in other jurisdictions, Canadian banks can become leaders in protecting customer financial health.”
According to a 2021 study reported in the Canadian Journal of Public Health,2.7% of Canadians can be identified as “at-risk gamblers” and 0.6% are “problem-gamblers”.
With direct access to gambling transaction data, the RGC argued that financial institutions such as banks and credit unions can identify ‘early warning signs of financial vulnerability’, such as increased reliance on savings and increasing overdrafts or credit.
Included in the white paper were a series of recommendations, including:
- Improving the accuracy of Merchant Category Codes to better track gambling spend
- Offering voluntary gambling transaction blocks
- Introducing self-defined monthly spend limits
- Targeted messaging and support resources within digital banking platforms
The paper also explores how commercial banking relationships can become a lever for player protection and how embedding harm prevention into due diligence processes benefits operators, institutions and players.
Canada isn’t the only market to call for closer collaboration between the gambling industry and financial institutions.
Looking over to the UK, banks such as Monzo and Starling were among the first to roll out voluntary gambling blocks to customers, while the National Australia Bank has delivered dedicated support pages and links to financial counseling.
The white paper reads: “As gambling operators plan to enter or expand across Canada’s regulated gambling markets, FIs are positioned to act as an integral stakeholder in the wider gambling ecosystem. Through commercial banking relationships with gambling operators, FIs can influence industry practices by setting expectations that prioritize player well-being, regulatory compliance and strong ESG performance.
“Ensuring that B2B clients demonstrate a meaningful commitment to harm prevention and safer play contributes to safer consumer outcomes and helps mitigate reputational, regulatory, credit and operational risks for operators and the financial institutions that serve them – particularly as new markets continue to evolve.”
