The UK Gambling Commission is continuing to gather information on whether to ban credit card use in gambling and will begin a 12-week consultation process in August.
The consultation process, which invites input from interested parties, follows a call for evidence earlier this year where the commission sought to gain insight from the gambling industry on the potential impact of both restrictions on credit card use and an outright ban.
Paul Hope, Executive Director at the UKGC, discussed the upcoming consultation: “Gambling with borrowed money is known to be a risk factor for consumers, so we think there is a need for action,” said Paul Hope, Executive Director of the commission. “This consultation will help us decide what that action should be.”
The commission is seeking input in several areas including alternative forms of borrowing and e-wallets. The Commission also said it expects there to still be ways for gamblers to indirectly use credit cards to gamble, regardless of whether or not a ban is implemented.
The commission also wants evidence regarding the motivations for using credit cards to gamble, and whether there are any specific benefits and risks of using them.
“One approach would be to ban gambling online with credit cards. However, the public and all other stakeholders will be consulted on other options, including restricting the use of credit card,” the commission said in its announcement. “The Commission will then take the most appropriate course of action in view of any evidence obtained by this consultation, alongside data already submitted.”
In another matter, the commission has responded to criticism on its handling of “l0ot Boxes” and other types of gambling in video games saying it is constrained by the UK’s current gambling laws.
The commission currently does not have measures in place to oversee the sale of in-game content such as loot boxes since current law does not clearly define how such customer engagements are monetized.
Brad Enright, program director for the commission told Parliament that the commission has been “constrained by the current legislation,” but said more needs to be done to crack down on those who were failing to protect players.
“The popular game Counter-Strike: Global Offensive is the game we’ve seen the most inquiries about,” Enright told MPs. “We’ve had dialogue with Valve Corporation, which publishes the game. Where we draw their attention to particular games where British consumers including children are gambling on those sites, they have closed them down.
“We’ve said that’s not a sustainable approach,” he said. “They’ve created this situation and there’s an onus and responsibility on them to address the byproduct of how they’re operating.”
Gambling Commission Chairman Neil MacArthur added that other games have also caught the commission’s attention.
McArthur said he was concerned about social casino games that offer gambling-style games that can be played by children but do not offer the opportunity to win money. Such games require age verification if they are on a gambling company’s website, but the Gambling Commission does not regulate those found on social media such as Facebook, he said.
