The UK Gambling Commission has announced that it will be holding a twelve-week consultation to investigate the use of credit cards by online gamblers. The consultation will begin in mid-August.
The idea that betting with credit cards could be banned in the UK was first put out by the UK GC in February 2019 when the commission began bringing evidence together around how and why gambling customers use credit cards. Whilst an outright ban could work to reduce problems with debt brought about by gambling, the commission is looking into ways in which gamblers could get around any ban and what should be done to mitigate this.
The UK GC says it will approach both the public and all gambling industry stakeholders during the consultation to gain further information on the following areas:
Alternative Forms of Borrowing– A ban on the use of credit cards may simply push gamblers into sourcing other forms of credit to enable them to continue you playing, like loans and overdrafts. The UKGC wants to make sure that the industry can work with financial bodies to ensure that gamblers are protected from racking up extensive debt from other borrowed money.
eWallets – A natural work around for anyone wishing to gamble with credit card funds after a ban would be to use an eWallet solution like Paypal. Here the player could simply fund their Paypal account using a credit card and then fund their casino account from Paypal. The UKGC wants to look at ways in which eWallet providers could support future regulation.
Further Evidence – In general the UKGC is seeking further information about why gamblers are using credit cards to gamble, and what benefits credit cards provide. Included in this part of the consultation would be an effort to understand how a ban would harm those who do not have a gambling problem or a risk of one.
Speaking ahead of the consultation period, the Executive Director at the Gambling Commission, Paul Hope, said: “Gambling with borrowed money is known to be a risk factor for consumers, so we think there is a need for action. This consultation will help us decide what that action should be.”
Credit Card Ban Announced in January to Come into Force in April
The Gambling Commission announced the ban on credit card use in January 2020. The announcement prevents online gambling businesses from allowing players in Great Britain to use any credit cards for gambling once the ban comes into full effect in April 2020.
The move to ban the use of credit cards to fund online gambling is seen by most in the financial sector as positive, although some see it as overrated due to several other payment methods that are more popular. Gambling experts believe the impact to be nominal since cards used for online and mobile gambling are not predominantly credit cards.
The ban on credit cards will make a difference in terms of preventing gambling via credit. It ends the use of a payment method that makes it possible to gamble with money players don’t own. Often the first indicator of problem gambling, financial challenges include maxed out credit cards, overdue or late payment of bills, and constantly borrowing money or selling personal belongings.
Although most players simply diverted to alternative payment solutions such as e-wallets, bank transfers, debit cards, and prepaid vouchers. A positive move in terms of security and safety, since most alternative payment methods steer clear of sharing sensitive information online.
Credit Card Gambling Ban Seen As A Positive Step
One of the first to welcome the credit card ban was Gamblers Anonymous, sharing that members claimed that they would never have run into huge debt if not for easy access to credit via credit cards. The ban on all gambling via credit cards does not affect the National Lottery.
Ireland Bans Whistle-to-Whistle Advertising and Credit Card Betting
Ireland followed and banned credit card betting as well as advertising gambling services during live sports. The ban on whistle-to-whistle advertising and credit cards is part of the Code of Practice focused on safer gambling outlining a comprehensive set of operator commitments across numerous player protection measures.
Germany Bans Use of Credit Cards to Gamble
German gambling enthusiasts are no longer allowed to use credit cards to fund their gambling accounts or to cash out funds. Since the ban in 2020, online casinos offering services to players from Germany are prohibited from facilitating transactions through Visa and Mastercard credit cards. This includes the removal of all references to credit cards as a payment method from betting platforms and sites.
New Sites Welcome Ban Contributing to the Well-Being of Gamblers
The benefits of a refreshing new era in online gambling are most visible at new slot sites concentrating on the well-being of all players. A fun and enjoyable experience is the centre of attention, which confirms emphasis on safety, security, fair gaming, and the effective use of prevention and protection tools.
Popular alternative payment methods include Trustly, highly popular due to the ease of use allowing payment to flow from one account to the other. No app download, no registration, and no cards. Trustly’s Pay N Play option combines the registration and deposit option, while the payment service provider assists online gambling operators to fulfill all KYC requirements.
PaySafeCard remains a favourite and provides the safest means to fund online casinos and betting accounts in the easiest way. PaySafeCard casinos provide players from the UK with a way to claim the best welcome bonuses and enjoy the latest slot released via a prepaid voucher.
The main payment methods and new online slot sites share a common goal, the key to enjoying the ultimate online experience is staying in control and playing responsibly. Find a list of the best new slot sites in 2022 licenses by the UKGC at TheSlotBuzz.