Credit cards in online casinos under criticism

The British gambling authority UK Gambling Commission has in has caused a stir on the market several times in recent years with serious decisions. This trend continues. 2020 also started with a real bang for the British industry. Because the use of credit cards in gambling was banned in April 2020. Not only online casinos are affected, but also stationary gambling operations. And it seems that other countries may soon follow the UK example.

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Credit card payments are particularly popular with UK players. However, the British Gaming Authority has been banning the use of credit cards since April 2020. And other countries could follow suit.(©stevepb/Pixabay)

Gambling Act Reform Bans Credit Cards in Gambling

The British Gambling Act has been regulating the handling of gambling offers in Great Britain for several decades. However, since the industry has changed several times over the past few months, there have also been constant calls for a reform of the Gambling Act in recent months. And this reform will also come. The gaming industry is affected, for example, in financial and organizational terms.Specifically, it's about the long-criticized credit card payments at gambling providers. A corresponding reform was passed a few days ago by theUK Gambling Commission. However, the gaming companies still have around three months to react to the changes in April or to prepare for them.

The ban since April 2020is by no means only affected Online casinos but the entire UK industry. This also includes stationary casinos or betting shops. According to the authority, the reason for the ban is primarily to do with improved player protection. An analysis of credit card payments last year found that 22 percent of credit card gamblers were gamblers with problematic gaming behavior. In order to be able to better prevent possible financial damage, these payments are now prohibited. According to estimates by the UKGCmore than 800,000 British players who would regularly use their credit cards for gambling would be affected. Neil McArthur, Chief Executive of the Gambling Commission, stated:

“Gambling with credit cards can cause significant financial damage. The ban we announced today should minimize the risk for all consumers of gambling with money that does not belong to them.”

British media are also reporting that the authority is currently intensively investigating apossible ban on e-wallets or electronic purses employed. The reason for this: Despite the existing limits at the banks, the players were able to deposit more than 150,000 pounds a day thanks to the eWallets.

Approval from industry body but stock market turbulence

UK industries are likely to suffer some losses as a result of the ban. This was exactly what was felt immediately after the announcement, because the companies' papers wobbled violently on the stock exchange. In the meantime, the shares have caught up again, but there have been losses of almost 600 million euros. William Hill's shares were down 8 percent on the stock market. Flutter Entertainment's shares lost 3.54 percent, while GVC Holdings' shares fell 0.5 percent. at the traditional provider William Hill, for example, in the meantime

Apart from the companies, many players are unlikely to be in favor of the new regulations. After all, there are countless credit card holders who use their cards responsibly. The British Gambling Commission is also aware of this, but they want to put player protection for the general public ahead of the convenience of an individual. McArthur stated:

“We recognize that this change will be particularly inconvenient for consumers who use their credit cards responsibly. But we are convinced that reducing the risk of harming other consumers also means that measures must be taken.”

Meanwhile, there is approval from theplayer protection associations and even the Betting and Gaming Council. This is a new gambling association that emerged in the summer of 2019 from the Remote Gambling Association and the Association of British Bookmakers. As the federation is committed to a safe and fun gaming experience, the authorities' plans have been strengthened.

Ireland apparently impressed by the plans of its neighbors

The motivated appearance from the neighboring country also seems to impress the relevant authorities in Ireland. A ban on credit cards for gambling is now also being considered here. There is approval in Ireland from various charities and bookmakers, among others. They announced that they would support the plans for implementing the announced measures. At the same time, the Gambling Ireland organization saidthat the banks would also have a certain obligation. After all, no bookmaker or casino owner would allow gambling on credit at their home. Instead, this is only possible because the banks would make this option available to customers. The organization also stated that every day they work with people who have accumulated enormous credit card debt through gambling. In many cases, these people would even use family members' credit cards. Of course without their knowledge.

Also inother European countries, the call for a credit card ban has meanwhile arrived. For example in Spain. Here, a consumer protection organization has asked the consumer protection minister to take an example from the credit card ban in Great Britain. In this way, it is hoped in Spain to be able to further improve player protection and control, especially among vulnerable groups such as adolescents and young adults. Once again, it appears that UK gambling regulators' restrictions are actually being used as a model for other regulators. It remains to be hoped that the possible consequences of the credit card ban will also be carefully considered in all regions. In Kenya,Credit card casinos continue to enjoy great popularity. Anyone who wants to play in theOnline Casino with a deposit of 10 CADs can still deposit money with a credit card.

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The article was published on January 30th, 2020 in the magazine by cpaws-ov.org under the keywords, ,,,,, published.
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