Starting April 14, online gamblers in the U.K. will no longer be able to use their credit cards to play. Last week, two years after groups including GambleAware and Citizens Advice urged the government to implement the policy, the UK Gambling Commission announced a ban on credit-funded bets.
Major operators including PokerStars, Betfair, 888 and Bet365 all allow their customers to make online deposits using credit cards. According to the Guardian newspaper, the commission estimates that 22 percent of people paying for online bets with credit cards are problem gamblers.
“Credit card gambling can lead to significant financial harm,” said Gambling Commission CEO Neil McArthur in announcing the imminent change. “The ban that we have announced today should minimize the risks of harm to consumers from gambling with money they do not have.”
So-called ewallets and services such as PayPal will “probably” be included in the ban, the publication reported, adding that in 2019, such providers allowed problem gamblers to circumvent banking limits and spend up to £150,000 a day.
“There is clear evidence of harm from consumers betting with money they do not have,” said Culture Minister Helen Whately, “so it is absolutely right that we act decisively to protect them. In the past year we have introduced a wave of tougher measures, including cutting the maximum stake on fixed-odds betting terminals (FOBTs), bringing in tighter age and identity checks for online gambling, and expanding national specialist support through the NHS Long Term Plan.
“We have also secured a series of commitments from five leading gambling operators that will include £100 million in funding towards treatment for problem gamblers. But there is more to do. We will be carrying out a review of the Gambling Act to ensure it is fit for the digital age and we will be launching a new nationwide addiction strategy in 2020.”
In addition to the credit card crackdown, the commission is also preparing to announce that membership of GamStop will become a condition of online casinos’ license to operate. GamStop allows people who want to block themselves from gambling voluntarily to give their details, which are then shared to prevent them from opening new accounts elsewhere.
Neil McArthur, Gambling Commission chief executive, said: “Credit card gambling can lead to significant financial harm. The ban that we have announced today should minimize the risks of harm to consumers from gambling with money they do not have. We also know that there are examples of consumers who have accumulated tens of thousands of pounds of debt through gambling because of credit card availability.
“There is also evidence that the fees charged by credit cards can exacerbate the situation because the consumer can try to chase losses to a greater extent.”
Culture Minister Helen Whately said: “Whilst millions gamble responsibly, I have also met people whose lives have been turned upside down by gambling addiction. There is clear evidence of harm from consumers betting with money they do not have, so it is absolutely right that we act decisively to protect them.
“In the past year, we have introduced a wave of tougher measures, including cutting the maximum stake on fixed odds betting terminals, bringing in tighter age and identity checks for online gambling and expanding national specialist support through the NHS Long Term Plan,” she continued. “We have also secured a series of commitments from five leading gambling operators that will include £100 million funding towards treatment for problem gamblers.”
“But there is more to do,” added Whately. “We will be carrying out a review of the Gambling Act to ensure it is fit for the digital age and we will be launching a new nationwide addiction strategy in 2020. We will not hesitate to take any further action necessary to protect people from gambling harm.”
One problem gambler, Chris Murphy, told the BBC he’s lost more than £100,000 (US$130,000) gambling online. Another, named Josh, said he lost £600 gambling online with a credit card, and then did “the worst thing possible. I chased the loss, which everyone says not to do, they say stop, don’t chase losses, you’re always going to be down in the long run.” Eventually, he lost more than £20,000.
“It progressed without me even realizing,” he said. “I’m looking at eight to 10 years to pay this off.”
Brigid Simmonds, chairwoman of the Betting and Gaming Council (BGC), said the industry group “strongly” support the requirement that all companies join GamStop.
“We will implement a ban on credit cards which adds to measures such as age verification, markers of harm and affordability checks, additional funding for research, education and treatment and new codes of conduct to protect the consumer,” Simmonds added.
Adam Bradford, co-founder of the Safer Online Gambling Group, called the credit card ban “welcome,” but “not a silver bullet to solve the problem.
“The gambling industry still needs to improve in many areas—for instance, performing better affordability checks on players and being more careful with its advertising.”
Marc Etches, CEO of GambleAware, added to the conversation, saying, “It is essential that every effort is made to protect those who may be at risk of experiencing gambling harm, so we welcome the decision by the Gambling Commission to extend the ban on using credit cards for online gambling, as well as offline.
“Gambling is a public health issue and mobile technology gives people access to gambling anytime, anywhere. Anyone who chooses to gamble should be able to do so in a safe environment, where the risks and available support options are made crystal clear.”
In an op-ed piece, Guardian columnist Rob Davies cited a “secret report” that said betting firms rely on VIPs to fill their coffers, and included the example of one operator that took 83 percent of all deposits from 2 percent of its customers. Another took 58 percent of its betting account deposits from 5 percent of its customer base made up of VIPs, while a third accepted 48 percent of deposits from 3 percent of customers. The data suggests that if the regulator bans VIP schemes, industry revenues could go into free-fall.
The report also called for a £2 stake limit on casino-style slots games, matching the restrictions imposed on FOBTs.
A UKGC spokesman said the body is preparing to address the issue.
“Operators must improve their interaction with VIPs and we have challenged the industry to make faster progress to improve how they manage their customers,” the spokesman said. “We have also taken robust action against operators who fail to protect consumers and we will be even tougher if behavior does not change.”
