By Eric King-
The Gambling Commission has launched a useful consultation on gambling with credit cards
The consultation follows calls to ban all remote gambling (betting, gaming and lotteries) with credit cards although the possibility of putting preventative measures in place is also being considered. The Commission plans to consider whether this should be extended to the use of credit cards for non-remote gambling.
It follows a recent call for evidence on the issue of online gambling with credit cards. the Gambling Commission launched a 12 week consultation , to conclude on 6 November 2019. The judgement of gambling operators have been found to be lacking on several counts as fat cat bosses are too busy enjoying the proceeds of their customer’s misery. Research also suggests that many bosses of gambling casinos are narcissistic because power easily gets to their heads.
ADVICE
The call follows advice from the Responsible Gambling Strategy Board on online gambling in 2018 and the Commission’s call for evidence between February and March 2019. It is estimated by online operators that 10-20 percent of all online deposits are made using a credit card. It conveniently does not include what action should be taken against managers caught facilitating problem addicts, as has been revealed during investigations that has seen many casino operators fined as a company.
However, many individual managers guilty of assisting gambling addicts often escape serious punishment that affects their jobs.
There have been calls to ban all remote gambling (betting, gaming and lotteries) with credit cards although the possibility of putting preventative measures in place is also being considered. It will be considered whether this should be extended to the use of credit cards for non-remote gambling.
RELATED ISSUES
The consultation seeks to explore a range of other related issues, such as improved age restrictions on online gambling websites, improved customer identification to establish if consumers are gambling outside of their means, and a crackdown on unfair terms & conditions. Past research of gamblers reveal that a wide number live above their means in the hope of winning big, this becoming a serious issue blighting many relationships
EXPLORE
The Commission sayS it wants to explore consumers’ motivation for using credit cards to fund their gambling and if there are any specific benefits of doing so. It is mindful of the impact that taking action on credit cards alone would have across the financial sector, as this may result in consumers using other means of borrowing to fund their gambling, such as overdrafts or loans.
SOURCE
The Commission says that when online gambling deposits are made through an e-wallet, online operators have no way to determine the source of the payment and whether it originated from a credit card or not. All future proposals would require e-wallet providers to take the necessary action to support any regulatory measures which are introduced. It added that consideration needs to be give to the impact of a prohibition or restriction on consumers who are not experiencing gambling harm and may be disadvantaged as a result of any changes.
RELATED ISSUES
The consultation seeks to explore a range of other related issues, such as improved age restrictions on online gambling websites, improved customer identification to establish if consumers are gambling outside of their means and a crackdown on unfair terms & conditions.
The Commission said take the most appropriate course of action in light of the evidence obtained and any prohibition or restrictions would be achieved by amendments to the Licence Conditions and Codes of Practice commencing in April 2020.
The outcome of the consultation is likely to be early next year but, with the ever increasing profits in the gambling industry and the percentage of consumers opting to gamble online, there is likely to be further regulations aimed at promoting responsible gambling and preventing gamblers falling into debt.