UK Gambling Sector Braces for Credit Card Gambling Ban
UK-facing betting and gaming operators are bracing for a clampdown on credit card gambling amid mounting pressure on the industry and damning criticism that it is not doing enough to tackle problem gambling.
The looming crackdown could involve either a blanket ban on credit card gambling or restrictions such as spending limits in a bid to prevent gambling customers from spending excessive amounts of money on wagering.
The new rules will be introduced in a report conducted by the UK Gambling Commission that could be published as early as this coming week.
News that Britain’s gambling watchdog was planning to curb credit card gambling first emerged in the summer of 2019. The Gambling Commission launched a twelve-week consultation period in early August, inviting the public and other industry stakeholders to voice their opinion on whether the use of credit cards for gambling purposes should be prohibited or at least limited.
The gambling regulator said at the start of the consultation period that after its end in early November, it would “take the most appropriate course of action in view of any evidence obtained by this consultation, alongside data already submitted.”
Customers of UK-licensed sports betting and casino gaming websites as well as retail betting shops are currently allowed to make deposits using their credit cards. Experts have cited the use of credit cards as one of the major factors driving the rise of problem gambling that has been recorded in recent years.
Will a Ban on Credit Card Gambling Really Help?
According to industry sources, the UK Gambling Commission is set to recommend a blanket ban on the use of credit cards for gambling or, at the very least, heavy restrictions, including limiting customers to the use of one credit card only.
Credit card gambling was also mentioned in relation to a planned overhaul of UK’s Gambling Act that was drawn up and introduced under Tony Blair in the mid-2000s. The use of credit cards for gambling purposes was one of the main issues raised by some MPs, including Labour Deputy Leader Tom Watson, who detailed the case of a woman who racked up a £100,000 gambling debt in just two days by wagering online with nine credit cards.
News about the pending credit card gambling shake-up have been welcomed by many, but others warned that any heavy restrictions would only push problem gamblers to unlicensed operators or towards taking out payday loans to fuel their habit.
Labour MP Carolyn Harris, who chairs an all-party parliamentary group on gambling-related harm, has been adamantly calling for a blanket ban on the use of credit cards for gambling. She has also been lobbying for banks to roll out measures preventing customers from using their overdrafts to gamble.
Some banks have already introduced tools aimed at helping customers who might have a gambling problem. Halifax and HSBC have both recently announced that their customers can self-exclude their credit cards from being used to gamble. HSBC card holders can only start re-using their credit cards for gambling purposes after a 24-hour cooling-off period, while Halifax customers can only resume making deposits with their cards after 48 hours.
Source: Bookies braced for credit-card clampdown on punters, The Times
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