How The Credit Card Ban Affects The UK Casino Industry

The British Gambling Commission is the only land and online casino regulator in the UK and is considered to be one of the most stringent, if not the most stringent, gambling regulators in the world. UKGC has made an unprecedented commitment to ensure that British gamblers enjoy a fair and safe gaming environment, and strive to minimize gambling-related injuries. Considering the strict regulatory requirements it imposed on licensees, it can be said that it has succeeded.

A Brief Overview of the Credit Card Ban

One of the latest security measures of the European Commission came into effect on April 14, 2020, when regulators formally implemented a ban prohibiting local licensed gambling operators from accepting payments via credit cards. The official announcement was made a few months ago in January of the same year.

The measure also applies to funding gambling accounts through cards linked to virtual wallets such as PayPal, Neteller and Skrill. The ban applies to all virtual and physical gaming products, without any exceptions, not even the national lottery.

The Ban Effects from the Perspective of UK Gamblers

So, will this credit card ban affect the local casino industry? The impact of the ban is twofold. From the player's point of view, the inability to use a credit card to deposit in a casino venue may bring great benefits because it will reduce the harm associated with gambling.

As everyone will tell you, it is easy to overspend when using a credit card. This applies to overspending in all cases, not just online betting. Therefore, the ban can protect British players from potential economic harm. With this ban, it is difficult, if not impossible, to gamble with money that the player does not actually have.

In addition, British regulators (whether by accident or not) chose to introduce new measures at a very appropriate time, namely during the rampant coronavirus pandemic and its related lockdown. Even without accounting for the global COVID-19 crisis, the use of certain gambling products in the UK has increased in recent years.

The two main examples are virtual slot machines and online sports betting. A study conducted by UKGC shows that interest in gaming products on behalf of local consumers is growing.

Neil McArthur, the chief executive of the regulator, said research shows that approximately 22% of online players who deposit via credit card are indeed gamblers. From this perspective, the ban will actually help create a safer gambling environment and reduce the risk of developing addictive gambling. For further information on Mr. MacArthur’s position on this measure, you can check the source of any online casino malaysia blog.

What about the Ban Effects on Casino Operators

In the past few years, few of the largest gambling companies operating in the UK have been criticized for allowing some of its customers to bear huge financial debts. Some industry experts will argue that the credit card ban may hit the local casino industry more or less.

In fact, shortly after the Gambling Commission announced its intention to ban credit card payments in mid-January 2020, some British bookmakers immediately felt the impact. The largest gambling company operating in the UK has declined. This is not surprising considering that the value of stocks is usually affected by important news like this.

Operator 888, one of the country’s oldest and most famous online gaming brands, dropped 3.3%. The same was true of its rival global gambling giant William Hill (founded in 1934), whose shares fell 3.2%. A similar trend has been observed in the stock value of other large UK gambling companies, including GVC Holdings and Flutter, the owner of the well-known gaming brand Paddy Power.

Having said that, some industry experts believe that although the ban on credit card payments is indeed a big step towards a safer gambling industry, it will hardly have a serious negative impact on UK operators, at least not in the UK. Long distance running.

This is especially true considering that the UK is home to one of the world’s largest and most developed gambling industries. Between October 2018 and September 2019, this sector alone generated approximately £14.3 billion in gross gaming revenue.

The Wrap-Up

To sum up, gambling has now become an integral part of the British entertainment industry. Virtual gambling websites only played a role in further promoting their popularization. However, this trend is a double-edged sword because the growth of the industry has also made it more difficult to control problems such as problem gambling.

When litigating online, it is difficult to determine whether a given customer is of legal gambling age. The same applies to preventing and controlling fraudulent activities, such as money laundering and financing of terrorist organizations.

From this point of view, the aggressiveness of the British regulators has laid the foundation for a better regulated gaming industry and will certainly ensure a safer environment for British players. Other countries may soon take notice and adopt the example of the British regulators and adopt similar measures to reduce gambling-related harm.