The UK Gambling Commission has announced that credit cards will be banned for online gambling from April 2020.
The news was announced by the UK gambling regulator via a statement on its official website. In the statement, the Commission revealed that the ban, which comes into effect on April 14th, will stop gamblers from using credit cards.
The ban, which comes after the Commission conducted a review on online gambling operations, will apply to all online and offline gambling services except for over-the-counter lottery tickets. According to the Commission, the ban will “provide a significant layer of additional protection to vulnerable people.”
A report from The Guardian, the first publication to discover that the Commission was planning on announcing the ban ahead of its announcement, has claimed that some e-Wallet payment methods like PayPal may be included as part of the ban. This has yet to be confirmed.
UK Finance estimates that around 800,000 people in Great Britain use credit cards to gamble and separate research from the UK Gambling Commission found that 22% of online gamblers that use credit cards are classed as problem gamblers.
Speaking about the regulator’s decision to announce the ban, Gambling Commission Chief Executive Neil McArthur said: “Credit card gambling can lead to significant financial harm. The ban that we have announced today should minimise 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.”
Following the announcement, the shares of gambling firms such as 888 Holdings, Flutter Entertainment and William Hill dropped slightly before recovering. Analysts have claimed that the ban would lead to a low single-digit percentage drop in revenues and cause gamers to consider other payment options.
Meanwhile, mental health charities have warned that gamblers may turn to overdrafts to compensate for the loss of funds. However, there are many safer alternatives to use for gambling.
Alternatives To Credit Cards
Most new slot sites already rely less on credit cards than other payment methods and, although you’ll still find a few gambling sites only accepting credit and debit cards, most modern-day online casinos now accept a wide range of payment options. Here is an overview of operators that include various e-wallets, bank transfer, and more.
E-Wallets are a hugely popular payment method, particularly Neteller and Skrill. These methods both allow for near-instant payments but are normally ineligible for casino promotions and bonuses.
Other online casinos have begun accepting payments via Bitcoin, although many claim it to be too unstable to use on a regular basis. There are also pre-paid cards such as Paysafecard but they cannot be used for withdrawals. Bank transfers are also a popular option, allowing you to move money seamlessly between your bank and casino account. Unfortunately, the wait times are often incredibly long for these methods, causing many gamers to turn to other options.
There are also several rare payment options such as Paybyphone and Boku, methods that allow you to pay via your mobile phone bill. Although you cannot withdraw using these methods, they’re great options as they allow you to either deduct money from your pay-as-you-go credit for deposits or add your casino deposit amount to your monthly phone bill. However, many have pointed out that it can be easy to overspend when using mobile payment methods.
Right now, it seems most customers prefer sticking to debit cards or e-Wallets for deposits and withdrawals as there’s less fuss and they’re completely secure. However, it can be confusing figuring out which online casino payment method works best for you, but since most new casino sites accept multiple payment methods you’re free to try them out or scour the web to discover more about the best casino payment options.
