Gambling Commission to launch consultation into credit card-based gambling
Regulator includes blanket ban among proposals to address gambling-related harm
The Gambling Commission (UKGC) will launch a twelve-week consultation into the use of credit cards in gambling online, the regulator has confirmed.
The UKGC said it was considering a ban on gambling online with credit cards but confirmed it would put forward other options within the consultation paper, including tighter restrictions on their use.
Paul Hope, Gambling Commission executive director, said gambling with borrowed funds was known as a risk factor for consumers, something which the UKGC believes need action.
“This consultation will help us decide what that action should be,” Hope added.
It follows the UKGC calling for evidence from operators, industry stakeholders and consumer groups in February.
Following these responses, the UKGC highlighted alternative forms of borrowing, such as overdrafts and loans as being of key concern should restrictive action be taken against the use of credit cards.
The UKGC said it will work with both the UK gambling sector and the financial sector to ensure at-risk players do not use these methods to fund problem gambling.
In addition to singling out alternative methods of funding gambling-related harm, the UKGC said it received several notifications regarding the use of e-wallets by players, something which the operators responding highlighted as making source-of-funds verification difficult.
Responding to this, the UKGC said that any measures implemented in the area of credit cards would “require e-wallet providers to take the necessary action to support any regulatory measures introduced,”.
The UKGC confirmed its call for evidence highlighted “very little” information about consumer motivation for using credit cards within gambling and any specific benefits of doing so.
Matt Zarb-Cousin, co-founder of Gamban, said gambling with borrowed funds was a sign of significant harm among players as they cannot generally afford to lose money.
“We welcome this step towards a ban on permitting gambling online with a credit card, as is already the case for land-based venues,” Zarb-Cousin added.