Gambling Commission to launch consultation on credit card gambling
The GB Gambling Commission has confirmed it will hold a 12-week consultation to gather public and stakeholder opinion on the issue of gambling online with credit cards.
Due to launch in mid-August, the consultation will consider a number of options, including an outright ban on using credit cards to gamble online and applying certain restrictions to the payment method.
The Commission will then analyse the findings, along with other data collected as part of the initiative, and establish the most appropriate course of action.
“Gambling with borrowed money is known to be a risk factor for consumers, so we think there is a need for action; this consultation will help us decide what that action should be,” the Commission’s executive director, Paul Hope, said.
In February, the regulator launched a call for evidence on the issue and has since noted a series of key interest points regarding online gambling with credit cards.
These include a consideration that if action is taken on credit cards alone, then consumers experiencing harm may use other forms of borrowing to fund their gambling, such as overdrafts and loans.
As such, the Commission has called on the financial and gambling sectors work together to protect customers from harm where they gamble with other forms of borrowed money. Upon launching the call for evidence, UK Finance, a body that represents more than 250 firms across the UK’s finance and banking industry, told iGamingBusiness.com it would support the Commission in its efforts.
The Commission has also noted that when igaming deposits are made via some e-wallets, operators cannot know which method the payment originated from. Therefore, the regulator said any future proposals would require e-wallet providers to support new regulatory measures.
In addition, the Commission has said that it is keen obtain further evidence on consumers’ motivations for using credit cards to gamble and the benefits of doing so.
According to the regulator, the initial call for evidence highlighted very little in this regard, adding that in order to prevent harm from gambling with credit cards, it must take account of the impact a ban or restrictions would have on those consumers who are not experiencing harm.