The gambling regulator in the UK wants to ban the use of credit cards for online gambling
A brand new 63-page report from the UK gambling regulator suggests that gambling online with credit cards increases the risk of players spending more than they can afford. The report is considering banning the use of credit cards for UK players who want to play casino games or place sports bets online.
The report dealt with the ways in which online gaming can be made safer in Britain for consumers. This is in light of the fact that online casino industry profits have grown 10% to £4.7bn ($6.6bn) in the past year and this growth is expected to continue. There is also increased public participation. It’s estimated that 9 million Britons play casino online, participation has risen from 15.5% in 2014 to 18.3% in 2017.
Credit Cards Can Be Risky
Credit cards are part of most people’s everyday lives to purchase all sorts of goods. They’re easy to use and secure but it can also be taken for granted that you’re making purchases on credit. This can be a slippery slope, especially for vulnerable individuals. Some lobbyists believe that limiting the use of credit cards in the UK online casino industry will make conditions safer for problem gamblers.
Labour MP, Carolyn Harris who is an advocate for safer online gaming, said: “The idea of gambling on credit cards terrifies me. Debts for gamblers can be a major concern not just for individuals and their families who often pay the price for a family member’s problem.”
The idea is that banning gambling with credit cards will protect players who pose a risk of gambling beyond their means.
Other safety measures discussed in the report also want to address dishonest marketing tactics, improving age verification, unfair terms and conditions and implementing measures to identify customers who are at risk of problem gambling.
Britain is the biggest regulated online casino industry in the world. Gambling Commission Chief Executive, Neil McArthur said: “With the proposals we’ve announced—we want to protect children, reduce risks to vulnerable customers and generally help partners identify ways to intervene in situations before they become harmful.”
$1 million fine for Sky Bet
The failure to protect vulnerable customers cost the sports betting company Sky Bet a £1m fine from the Gambling Commission last month.
The BBC reported that a Gambling Commission investigation uncovered the fact that 736 players who self-excluded from Sky Bet, were able to still use copied accounts. Additionally, 50,000 self-excluded customers still received marketing emails, marketing text messages, and push notifications. Also, nearly 36,500 self-excluded customers did not have their account balances returned to them.
The UKGC programme director called this a “serious failure” and that the “£1m penalty package should serve as a warning to all gambling businesses.”
888 Holdings also landed a £7.8m fine in 2017 for permitting around 7,000 self-excluded customers to continue making deposits that came to over £3.5m ($5m) over a period of 13 months.