Author: Jack Reeve
On the 14th April 2020, The United Kingdom Gambling Commission brought into effect the regulation of a credit card ban on the gambling industry. The UK credit card gambling ban was based on the risks of harm on punters who gambled on more than they could afford.
The UKGC highlighted that around 82% of credit card punters were not aware of the fees that revolved around credit card gambling. Protection from cumulative debt due to multiple card usage was meant to diminish. A lot of casino sites that accept credit cards had to face strong evidence against them which led to the ban.
Overview of Credit Card Ban At Gambling Sites In The UK
The credit card ban in the UK not only affected the gambling habits of the punters but also payment gateway providers who aim to provide compliant and flexible solutions. The Merchant API targets to bring about more payment methods to provide vendors with myriad options for facilitating payments. This has increased partnerships between gambling sites and payment service providers for a better on-site experience. The industry aims to come up with diverse solutions in order to maintain a player base.
Pros Of Banning Credit Cards
There are some definite benefits to the credit card gambling ban in the UK. The country aims at a safe and stable gambling environment for all the gamblers which can take place due to important and impactful measures.
- Protecting Gambling Interests: The country aims at making gambling safer and fairer to protect the players. As per a survey conducted by the UKGC, among 24 million gamblers based in the UK, around 10.5 million punters prefer online betting whereas 800,000 of them prefer gambling sites that take credit cards. 22% of online punters who prefer credit cards are compulsive in nature. Thus, the implementation of new measures for the protection of vulnerable punters is paramount. This new ban on credit card gambling would prevent defenceless gamblers from wagering with these cards.
- Prevention Of Huge Debts: This prohibition has helped to avoid problem gamblers from accumulating huge debts towards credit card providers or banks. Credit card betting resulted in huge financial distress among gamblers and which resulted in enormous debts.
Cons Of Banning Credit Cards
The banning of credit cards for gambling in the UK has also resulted in certain disadvantages for not only the punters but also the country as a whole. However, the UK still focuses on the ultimate goal of player protection irrespective of certain issues.
- Fall Of Gambling Companies: The ban on credit cards has reduced gambling problems but has had a major impact on the iGaming market. Due to this ban, the number of punters using European licensed casino websites decrease and drags down the overall business revenue. This would lead to company migration and people would prefer using gambling legislations like France, Malta, Curacao, etc which are flexible in nature.
- Government’s Wallet Gets Affected: Credit card ban in the UK has decreased tax discounts. Since the gambling industry contributes to the economy of the country, the reduction in the number of betting platforms would be a loss financially. Gambling is tax-free in many countries which do not affect their economy, unlike the UK. This newly implemented ban is harmful for revenue generation.
Summarize Blocking Credit Cards at Gambling Sites
This measure of prohibiting credit card gambling in the UK has brought about both positive and negative impacts on the industry, punters, and the country as a whole. It is definitely a long-term measure beneficial in terms of player protection.
Bet365 and GamStop FAQ
❓ What’s the main reason for the credit card ban in gambling?
The main reason behind the credit card ban involves the protection of problem gamblers from further harm and debts. Responsible gambling is what the UK roots for and this ban is a step towards achieving that over the years. This ban was suggested by GambleAware and Citizens Advice.
❓ Are all casinos banned from credit card payments?
No, only casinos licensed under the UKGC are eligible for a credit card ban. Some casino sites with independent regulations still accept credit card payments without restrictions. UK punters can choose to gamble on these platforms without such impositions.
❓ Is it forbidden to use credit cards for gambling?
No, credit card gambling is still popular in most countries. All the offshore casinos that accept credit card payments too. However, casinos in the UK under the United Kingdom Gambling Commission have imposed a ban on credit card gambling for UK punters.
❓ Why don’t some casinos ban credit card payments?
Since many casinos operate outside of the UK under offshore licensing commissions, they do not have to follow the rules applicable in the UK. The credit card ban, therefore, doesn’t apply to them.