Credit card gambling to be banned in the UK
It has been confirmed by the UK Gambling Commission that a ban on the use of credit cards on both online and offline gambling. The ban will come into effect on the 14th of April 2020.
This is a result of a review by the UKGC and the government as well as a public consultation which took place between August and November last year.
What will this mean for the gambling industry? There are a few possible scenarios:
Will this cause casino’s to close their doors to the UK market and concentrate on other markets?
Will unlicenced casinos be on the rise, because it will take a lot of time and effort to ensure that the new laws and regulations are followed through?
Will Paypal be next on the list as players can fund their Paypal account via a credit card?
Credit cards can also be used to transfer funds to the players’ bank accounts and also for cash withdrawals. If they are determined to gamble, they will still find a way.
It is said that 22% of online customers using their credit cards are problem gamblers and a higher percentage are at risk of harm.
Minimising risk
Neil McArthur, Gambling Commission chief executive, said: “Credit card gambling can lead to significant financial harm. The ban that we have announced today should minimise the risks of harm to consumers from gambling with money they do not have.
“We also know that there are examples of consumers who have accumulated tens of thousands of pounds of debt through gambling because of credit card availability.
“There is also evidence that the fees charged by credit cards can exacerbate the situation because the consumer can try to chase losses to a greater extent.
“We realise that this change will inconvenience those consumers who use credit cards responsibly, but we are satisfied that reducing the risk of harm to other consumers means that action must be taken.”
Since the ban was announced, shares in gambling industries have dropped, these include the likes of Flutter Entertainment, 888 Holdings and William Hill.
