The U.K. Bans Use Of Credit Cards To Fund Online Gambling

• Gamblers in the United Kingdom are no longer allowed to use credit cards to pay for their bets.
• The credit card ban comes amid the COVID-19 pandemic which has caused an increase in online betting.
• The United States has yet to decide if they will adopt the same policy for their sports betting markets.

LONDON, England —The closure of brick-and-mortar casinos has forced many bettors to switch to online sportsbooks. These platforms are more available to bettors since they don't have a closing time. However, this has worried many regulators that more people will gamble with money that they don’t have.

In January, the UK’s Gambling Commission approved the ban on credit cards to fund online gambling accounts and stated that the ban would be implemented on April 14. The ban applies to both online and offline betting while also preventing at-risk gamblers from using e-wallets to gamble. The commission made sure that betting operators are not allowed to take any money from e-wallets that don’t prevent credit card use for gambling.

Neil McArthur, Gambling Commission chief executive, said: “This credit card ban will further protect consumers from financial harm and from today, nobody in Great Britain can use a credit card to gamble. It is a ban which ultimately reduces the risks of harm to consumers from gambling with money they do not have.”

While the ban was set in January, the timing it went into effect couldn’t have been more ideal for those who are afraid of problem gambling rising in a time when the economy is practically shut down.

“The ban also comes at a vital time as we are seeing an increase in the use of some online products, such as online slots and virtual sports, and our online search analysis shows an increase in UK consumer interest in gambling products since the lockdown began. This highlights just how important it is for gambling operators to keep people safe and the credit card ban will help that,” said, McArthur.

The United States has yet to announce if it will be following the United Kingdom in banning credit cards for gambling. Much of the regulatory power comes from states with legal online gambling such as Pennsylvania, New Jersey, & Nevada. All have state-licensed online casinos and haven’t banned the use of credit cards for gambling.

Deposit methods for online casinos in those sates, as well as states with legal sportsbooks, vary in method to maximize on the amount of people willing to use their sites. Only time will tell if they adopt this U.K. initiative.