The UK Gambling Commission has announced that starting with April 14th will come into effect a ban on gambling businesses that allow clients to add funds by using credit cards. The ban follows the Commission’s review of online gambling and the Government’s Review of Gaming Machines and Social Responsibility Measures.
In Great Britain, 24 million adults gamble, and 10.5 million of those are gambling online. According to a UK Finance estimate, more than 800,000 clients are using the credit cards to gamble. The Commission has undertaken separate research that shows that 22% of online gamblers using credit cards to gamble are problem gamblers – with even more at some risk of harm.
The ban, which will apply to all online and offline gambling products with the exception of non-remote lotteries, will provide a significant layer of additional protection to vulnerable people.
În a conference, Gambling Commission chief executive Neil McArthur said that “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. Research shows that 22% of online gamblers using credit cards are problem gamblers, with even more suffering some form of gambling harm”.
“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.”
“We realize that this change will inconvenience those consumers who use credit cards responsibly but we are satisfied that reducing the risk of harm to other consumers means that action must be taken. But we will evaluate the ban and watch closely for any unintended circumstances for consumers.”
“The ban is part of our ongoing work to reduce gambling harm. We also need to continue the work we have been doing with gambling operators and the finance industry to ensure consumers only gamble with money they can afford to spend.”
McArthur said that he understood that some consumers used credit cards because they were convenient, the risk of harm to others was too high to allow the use of credit cards to continue.
In 2019, the Department for Digital, Culture, Media, and Sport (DCMS) ministers met with the banks and gambling operators to discuss how the gambling companies could use technology and customer data to detect and help those at risk of developing gambling problems, including those using credit cards.
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. 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. We will not hesitate to take any further action necessary to protect people from gambling harm.”
The Commission announced changes to the licensing conditions which will require all online gambling operators to participate in the GAMSTOP scheme and offer their customers the service from 31 March.
“We welcome the fact that GAMSTOP have got to this stage in their development and encourage them to continue to improve their offer, particularly in relation to preventing those who have self-excluded being targeted by direct marketing. It is important that self-exclusion schemes are as effective as possible and they will be most effective when used in combination with other blocking tools such as gambling blocking software and payment card blocking”, said Neil McArthur.
Helen Whately added, “We have been clear to all businesses that have connections to gambling, such as operators, social media platforms and banks, that they must be socially responsible and use the power of technology and data to help consumers manage their spending and protect them from harm. I have been encouraged by the majority of major high street banks to introduce measures to allow customers to switch off spending on gambling through mobile apps”.
“By making it a regulatory requirement for all online gambling websites licensed in Great Britain to sign up to Gamstop. I am confident that people who have taken the significant step to opt-out of gambling will be well supported, alongside a wide range of other tools.”
