UK Gambling Commission Will Launch Consultation Regarding the Future of Credit Cards and Gambling

A twelve-week consultation by the UK Gambling Commission on credit card gambling will take place in mid-August. There are several options in play, and the goal of the consultation will be to find the most suitable one for both players and operators.

Banning gambling online via credit cards is one of the approaches, as well as restricting its usage.

However…

… the public and all other stakeholders will be consulted on other solutions.

After the consultation, the UKGC will analyze the findings, along with other data collected as part of the initiative. Based on the results, it will establish the most appropriate course of action.

The Call For Evidence Fails to Gather Sufficient Data

In February, the regulator launched a call for evidence on this issue. Since then, it has noted a series of key interest points regarding online gambling with credit cards.

These include a consideration that if action is taken on credit cards alone…

… then consumers experiencing harm may use other forms of borrowing to fund their gambling, like loans and overdrafts.

That is the reason why the UKGC has called both the financial and gambling sector to work together in order to protect their customers from harm when they gamble with other forms of borrowed money.

Commission is adding that in order to prevent harm from gambling with credit cards…

… it must take into the impact a ban or restrictions would have on those consumers who are not experiencing harm.

It was also noted that when iGaming deposits are made via some e-wallets, online operators don’t have the knowledge of which method the payment originated from.

Therefore…

… any future proposals would require e-wallet providers to new regulatory measures.

By the confession of the UKGC, the recent procedure had failed to reveal any meaningful insights. Now, it will be looking at whether this type of payment method is beneficial for gamblers in any way, and what the consumers’ motivations are for using credit cards for gambling online.

Strong Opinions on the Matter

Along with other politicians, of the Labour Party expressed its judgment, noting that…

… a full ban on credit card gambling would be the best course of action.

However, the outright ban is expected to have negative effects on the gambling industry in the UK, which had recently seen several major blows, with the latest one looming in just a few months.

The industry is still experiencing the aftermath of the reduction of the maximum stakes on fixed-odds betting terminals (FOBT). As a result of these restrictions, up to a quarter of UK high-street betting shops are slated for closure. The reduction came into force in April after concerns that the betting machines were linked to gambling addiction, and now the usage of the credit cards is in the spotlight.

The gambling community eagerly awaits the two-week UK Gambling Commission consultation results which can bring a stop to the credit card gambling.

Source:

“UK Gambling Commission to Launch Consultation on Credit Card Gambling“, europeangaming.eu, July 25, 2019.