Online operators argue against ban on credit card gambling
Industry argues ban would be “ineffective” resulting in failures in AML, RG and source of wealth checks
Online gambling operators have warned against a blanket ban on gambling with credit cards, according to new evidence submitted to the UK Gambling Commission.
The Commission this week launched a twelve-week consultation into whether to ban the use of credit cards in gambling, following an initial call for evidence in July.
According to the Commission it received 25 responses form operators, with “most” arguing against the need for a ban.
Firms argued any ban would force players to look for other more harmful ways of funding their gambling, such as the use of overdrafts and loans.
Most responding operators claimed that the industry would lose one of its key markers of harm, which are used to spot individuals at risk of gambling related issues. They also said this would result in “less visibility” over player source of funds during AML checks.
Respondents said that a ban if enforced, would require operators to risk assess funding methods for gambling “by more intrusive means” such as obtaining bank statements.
Firms also argued that such a move would be inappropriate because not all of those who use a credit card for gambling are at risk of harm.
The use of e-wallets by players could also circumvent any ban, operators warned.
When asked about the potential alternatives to a blanket ban, companies suggested limiting customers to only one active credit card per gambling account and providing “cooling-off” periods in which credit card deposits could not be used for a fixed period.
The use of affordability checks by gambling operators on their customers was also suggested as a potential alternative to a ban, with operators indicating that the registration of a credit card on a gambling account should be made a high-risk indicator in CSR checking mechanisms.
So-called reality checks warning customers of their credit card spending, mandatory credit card spending limits and the promotion of gambling blocking banks such as Monzo, Starling and Barclays was also suggested as an alternative.
The UKGC’s twelve-week consultation on the ban closes on 6 November.