The challenges facing the online gambling sector with the potential threat of a ban on credit card transactions
The Gambling Commission (GC) is currently considering banning the use of credit cards in online gambling transactions, leaving online operators in a turmoil. Minister of Culture Jeremy Wright has announced plans to hold bookmakers and large retail banks to discuss the use of gambling credit cards, and his suggestion stems from staggering statistics, with up to 20% of deposits coming from non-direct consumers Have access to the funds in which they use.
The Labor Party has also stated that if they were to come to power in the next parliamentary elections, they would impose a ban on gambling with credit cards. GC requested evidence from numerous operators in early 2019 and later confirmed that they would hold a twelve-week consultation that began sometime in August. Several key points of interest have been discovered around the use of credit cards in online gambling and these include:
- Alternative forms of gambling to determine whether consumers are borrowing in the form of overdrafts or loans, and if so, both the financial and gambling sectors would need to work together to protect customers from harm.
- E-Wallets: Many operators have no way of knowing where the funds come from when making deposits through this source of funding. Future proposals would require these e-wallet services to take the necessary action when regulatory measures are introduced.
Harry Christodoulou, founder of Bingofind, who has covered this topic with other publications, said, “We’ve talked to affiliates from the iGB community to see how they’re dealing with this potential issue, but they do not seem so concerned be, for now.”
Any impact on land-based and iGaming operators?
There is a big advantage in using a credit card for gambling transactions, and this is the fee that consumers have to pay when making a deposit. The vast majority of players seek the methods that allow them to get around this fee, and this means alternative deposit methods like debit cards and e-wallets, both of which require that there be money in the account or you can not use them. There is massive speculation about credit cards and problem gambling with many charities, who fear that gambling with credit cards can encourage people to gamble beyond their financial resources and Evolution Gaming Crackdown In Sweden . A shocking stats from Totally Money and Defaqto revealed how consumers had earned unbelievable $ 23.8 million in interest and transaction fees through the use of credit cards during the 2018 World Cup alone. The British have bet $ 2.5 billion on the football tournament and 20% of that amount from credit card payments. You can buy bitcoin with zelle.
A period of uncertainty is circulating in the gambling sector, and as a result, PayPal, one of the world’s leading e-wallet services has pulled its services from German online casino players and Online gambling Thailand, will they do the same here in the UK? We are fortunate to have one of the most regulated markets in the world so the likelihood of this happening is low. A domino effect could prevail nationwide; if an e-wallet has closed its services, many others are likely to follow suit; PaysafeCard etc. could follow and the German gambling market could be scrutinized again.
Rules are there for a reason and most operators welcome them, even if they could harm them in the long run, but if they stop the gambling minion and put an end to gambling, then they can not all be bad. The outcome of the GC consultation on the use of credit cards in gambling is due to be announced in mid-November. See The Challenges Facing the Online Gambling Sector for more.