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Until now, credit card payments were very utilized for online gambling in the United Kingdom. Credit cards were used to purchase lotto tickets, casino chips, play Poker online, or make deposits and withdrawals on gambling websites. However, the Gambling Commission has decided to introduce a new regulation that bans gambling on credit cards, in order to reduce problem gambling and worsening debts.
Credit card ban
This interdiction was first discussed in April 2018 and will come into effect 2 years later, on 14 April 2020. This regulation is designed to diminish the issue of problem gambling, as well as credit card fees, which further exacerbates the problem of related gambling debt.
There are 20 million people that gamble only in the UK and about half of them are doing so online. Within the last year, £14 billion were generated through casinos and around £5.36 billion were produced in the online environment on casino bonuses, sports betting, slots, and table games. Distinct research conducted by the Commission shows that 22% of online punters using credit cards are classified as problem gamblers. As proof, the UK’s best-paid CEO in 2019 was Denise Coates, founder of an online betting company, called Bet365, taking home a $422 million paycheck.
Gambling Commission’s opinion
Chief executive Neil McArthur stated that credit card gambling may lead to financial harm and this ban should minimize the consumers’ risk of harm from gambling with money they don’t have. Even though the Commission understands the convenience of credit card payments and the inconvenience of responsible consumers, the action must be taken in order to protect other users from harm. Neil also added that the ban will be closely watched and evaluated for any unintended situation for the users.
However, the ban will not be applicable to non-remote lotteries. The National Lottery and society lottery tickets and scratch cards are available for purchase in supermarkets and newsagents. It would be a burden on retailers to recognize and prevent credit card payments for lottery tickets if they’re a part of a wider shop.
GAMSTOP scheme
The GAMSTOP scheme is enabling gamblers to self-exclude from over 200 online gambling operators for a defined period of time and all online gambling operators are required to take part in the self-exclusion plan.
The service is free and should be signed by the punters themselves, rather than worried family members. Once activated, the person will be banned from all operators for a period of 6 months, 1 year, or 5 years. Once the minimum term has passed, the self-exclusion will continue until the person asks for it to be dismissed.
Numerous top brands such as Paddy Power, Betfair Casino, Ladbrokes have already signed the GAMSTOP scheme and those who haven’t, will need to abide by March 31.
Brigid Simmonds, chairwoman of the Betting and Gaming Council stated that the industry body firmly welcomed the requirement for all enterprises to join GAMSTOP.
Bottom line
Credit cards are some very rewarding tools when used properly, for eligible purchases. However, they will no longer be of use for gambling enthusiasts, starting April 2020. In spite of everything, online casinos bring alternatives to the Gambling Commission’s ban, providing various payment methods for responsive gamblers, such as e-wallets, including PayPal, Neteller, Skrill, EcoPayz, or EntroPay.
