UK Considering Credit Card Ban For Gambling Industry

Great Britain’s culture secretary Jeremy Wright has heralded a possible move by the UK government that concerns payment methods in gaming amid concerns of money-laundering and a wider array of problem gambling.

There are justified apprehensions that as much as 20% of deposits made with gambling companies via credit cards are using money that does not actually belong to depositors. Wright has called for an all-round meeting with bookmakers, betting companies and retail banks to discuss this matter.

Country’s industry overseer, UKGC, has issued a statement that the issue is being looked into and will provide evidence for these claims during February…

…which, if proven true, could lead to a complete ban of credit card use in British gambling!

Billions of Pounds at Stakes

Such a move could make tidal waves of consequences that will be measured in billions of pounds in annual bets.

UKGC and the UK government are addressing the issue of slow progress regarding self-exclusion schemes in the country and could come up with a legal-framework for a new regulation that ousts credit cards as depositing method.

Secretary Wright is adamant that operators must step in and act accordingly whenever people are expressing distressing signs of risk gambling. “Their licenses are at risk if they do not.” he added, stressing out the seriousness of the situation.

With Labour party already announcing that they will ban credit cards from gambling, Wright further commented:

“We should also ask if it is right that people should be able to gamble on credit and this is an area that the Gambling Commission are going to look into.”

Banks Thinking Ahead

In recent months, major high-street banks such as Barclays, Lloyds, Royal Bank of Scotland and Santander have all introduced their in-house tools that can help their s restrict spending credit card funds with various types of retailers, including gambling companies.

These solutions were welcomed by Wright and UKGC alike – watchdog’s spokesperson has confirmed that the prohibition or at least restriction of credit card use will be considered and its consequences explored – as was outlined in last year’s online review.

UK’s gambling industry has come up with its own problem gambling feature – GamStop. It was supposed to be rolled out at the end of last year, but its launch was halted by the Commission that feared s can still receive gambling ments and promo material.

Secretary Wright concluded by saying:

“Self-exclusion schemes are essential but must be properly policed and effective to the individual that has taken the decision to opt-out. Self-exclusion measures are licence conditions for all gambling operators and those who cut corners in this area must face action.”

The regulator will publish an update in the coming weeks.

Source:

“Gambling on credit card could be banned in overhaul of betting”, Rob Davies, theguardian.com January 12th, 2019.