The long-awaited credit card wagering ban is being enforced from today in the United Kingdom.

In-line with its 2020 regulatory agenda, the UK Gambling Commission (UKGC) has completely banned credit card wagering across all gambling verticals (excluding non-remote lotteries) from today, 14 April 2020.

The UKGC says the ban is intended to help make the UK “the safest gambling environment”, and cut down on the financial harm suffered by problem gamblers.

Discussing the ban UKGC 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.”

Though only a fraction of the approximately 24 million UK gamblers finance their wagering using credit cards, it still adds up to an estimated 800,000, according to research from UK Finance.

The UKGC says it will be monitoring the ban for any “unintended circumstances for consumers.”

AYO.NEWS says:

Though at first glance a ban on using credit cards to gamble looks sensible, it might not be as simple or effective at combating problem gambling as many assume.

First up, and most obvious from a problem gambling perspective, those wanting to gamble with credit can still easily use third party payment services to circumnavigate the ban.

Secondly, many people use credit cards for all online purchases because of the greater protection from fraud etc, or simply to manage cash-flow.

Lastly, there is the simple question that the ban poses. That is, if the ban is being implemented because people “can get into trouble” through using their credit cards for unwise spending, then surely there are a myriad of other things people also buy with credit cards that get them into serious financial trouble.

Fundamentally, if the authorities are going to tell people what they can and can’t use credit for, doesn’t it raise the question of should we have credit cards at all?

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

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