On January 14, 2020, the regulator of Great Britain’s gambling industry pointed out that credit cards will be banned for gambling, as an extra layer of consumer protection needs to be added. Today, three months later, on April 14, the decision officially becomes effective.
Undoubtedly, the measure will provoke numerous turbulences in the industry, but how will it exactly affect both players and operators?
Neil McArthur, Gambling Commission chief executive, commented as follows:
“This credit card ban will further protect consumers from financial harm and from today, nobody in Great Britain can use a credit card to gamble. It is a ban which ultimately reduces the risks of harm to consumers from gambling with money they do not have.”
Reaching an Important Milestone
This strict measure follows the Commission’s review of online gambling and the Government’s Review of Gaming Machines and Social Responsibility Measures. It was initially announced in January, on behalf of both the Commission and the Department for Culture, Media and Sport (DCMS)
Moreover…
… it’s a direct result of a public consultation carried out between August and November 2019, where the idea of the ban was widely discussed.
McArthur also added:
“The ban also comes at a vital time as we are seeing an increase in the use of some online products, such as online slots and virtual sports, and our online search analysis shows an increase in UK consumer interest in gambling products since the lockdown began. This highlights just how important it is for gambling operators to keep people safe and the credit card ban will help that.
It’s important to mention that…
…the prohibition extends to credit card gambling through e-wallets. This means that the operators can only accept customer payments via e-wallets if those e-wallets prevent the use of credit cards for gambling. One of the alternative solutions is Easy Payment Gateway, payment and fraud management services aggregator.
Shocking Stats
As far as the Commission pointed out, this represents huge progress in the protection of online customers from harm. According to the stats, about 10.5 million people gamble on the Internet, and 800,000 use credit cards for this purpose.
Research also highlights that 22% of online punters utilizing credit cards are categorized as problem gamblers, with even more suffering some form of gambling harm.
Great Britain is not the only market…
…which is taking some serious measures regarding transactions, Spain is also considering this option. New Zealand is contemplating this idea after consultation with the UK and Australia held last year.
The Commission’s decision becomes effective in the most appropriate moment, as it turns out, having in mind that some players may be changing their gambling habits in the light of the current situation.
Source:
“Protecting the safety of consumers is at the heart of today’s credit card gambling ban”, gamblingcommission.gov.uk, April 14, 2020.
alex_k 4 years ago Sr. Member
I completely agree with Sylvanas, it's just a way of incapacitating industry without making it illegal.
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CBG 4 years ago Hero Member
meh Governements be govrnements, sticking their noses where it doesnt belong
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Sydney 4 years ago Almighty Member
Good measure, but I don't think it will help much to reduce overall rates of problem gambling. The majority of online gambling deposits are still made via debit cards and people addicted to gambling could try to fund their activity through payday loans and another products with very high interest rates.
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Sylvanas 4 years ago Admin
I get where they're coming from, but I can't help but feel like we are being denied some basic rights here. Why legalize gambling only to slowly erode the industry by removing access to it bit by bit? What is next?
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barebones 4 years ago Super Hero
I have to agree. When these news first came up, I heard some people complaining but I personally think that it makes a lot of sense, especially for people who might need some extra help with limiting their gambling spend. So I believe that something good will come out of this decision.
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VlagreDis 4 years ago Newbie
Now that this is officially effective, I’m sure there will be many comments and divided opinions. There are both good and bad sides of the ban, we’ll see how will players react.
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