The UK Gambling Commission put up a ban on using a credit card in the MSBs on 14th April 2020. This ban came into effect to curb the growing addiction to gambling among UK customers. Watchdogs have observed that customers bet more than what they can afford. Even the credit card play is not supported through the e-wallets.
With this imposed ban, there were many issues related to, so UKGC on 10th June issued guidelines over the credit card ban for making gambling payments. UK’s significant gambling regulatory body has implemented some new license conditions for the gambling brands. Under the license condition 6.1.2, the gambling operators are barred from accepting credit card payments through any Money Service Business or directly. These MSBs include e-wallets, electronic money institutions, or other financial electronic technology modes that allow credit card deposits.
Key Objectives Behind the Ban Explained
According to the UKGC official, the ban has been imposed upon gamblers not to use their credit cards as they were uncontrollably using the borrowed funds. This implementation will help the UK customers to safeguard themselves from gambling-based harmful effects and not to come under the debt.
The UKGC has asked the gambling operators to keep an eye on the credit card ban so that there is no fund transferred to an e-wallet account or any MSB account. In another official statement released by the UKGC office stated that the executives had explained the credit card ban and the related consultation. Moreover, the gambling companies operating in the UK are not allowed to accept payment through any of the MSBs. Furthermore, the MSBs have to ensure that none of the payment is possible with the use of the credit card or done by the credit card.
Even it was seen by the UKGC that many electronic money institutions and Revolut allows their users to fund their accounts using credit cards. This made UKGC decide on imposing the ban so that gamblers do not fall under the mounting debt. Even the UK-based gambling sites created the system that would handle any transaction done through credit cards. In the wake of this verdict, the Revolut banned all the transactions done through credit cards or e-wallets.
Moreover, UKGC also warned the UK gambling license holders that they have to reject all the payments made by the credit card ban until the block system comes into existence. So, UK media called out to the services like Boku and Payforit that uses the “pay-by-phone” model that will allow gamblers to fund their account. Players now use these funding options, and the funding limit is almost £240 monthly which is then added to the phone bill of the consumers.
Responsibility of Gambling Companies
The UKGC has asked operators to make contact with those third-party wallet providers whose payment facility involves other than credit card options. These operators must provide some other transaction options through their websites or gambling apps. Sufficient payment options except a credit card must be provided to customers.
According to UKGC, gambling brands or operators must be aware of other e-money processors who provide money depositing services into player’s accounts. Even watchdogs are reminding the gambling operators to take the special course of action before accepting any deposit made by the customers. These can be done through any of the MSBs but not using the credit card.
Gambling companies must keep an eye on all the transactions done through MSBs that are still using the credit card. As the ban has been imposed, to curb the menace of addiction to gambling or falling under heavy debts. The gambling companies must provide the guarantee to the Commission that they are not using the payment through credit card through any of the MSBs.
The UK Gambling Commission has issued this particular guidance due to the increased cases of gambling and players getting under heavy debts. To prevail responsible gambling among the customers, this step has been taken by the Commission. Even anti-gambling campaigners also stated that many gamblers, especially the ones suffering from gambling addiction, are using the money to place the bets that actually do not belong to them.
But, will this ban accelerate cryptocurrency gaming as the e-wallets that are funded through credit cards are banned in the UK. A few marketing experts see this as a positive affirmation for the cryptocurrency since gambling operators may switch to cryptocurrency gambling after this ban and guidance issued by UKGC. Yes, the wide market can see the crypto being adopted for making deposits and payments by the customers, and even gambling operators in the UK can slowly make a shift towards cryptocurrency too.