The Gambling Commission isn’t happy about online gambling accounts being funded by credit card payments. In fact, it’s so unhappy that in early 2019, it launched a consultation on whether consumers should be banned from paying for gambling by credit card. The Commission feels that anyone using credit to fund their gambling is playing with money they do not have. 

Well, sometimes. But not always. Let’s take a closer look.

There are many people who are fully on top of their finances, and who use a credit card to pay for everything during each month. Then they clear the balance in full by a pre-arranged direct debit each month. Would we really say that these people were paying for groceries, petrol, clothes and other items with money they do not have? If so, surely all credit card spending would be equally wrong? Or is it the case, that a different standard is being applied to gambling?

The Commission’s view is that betting using a credit card, is a high-risk behaviour, and one that may well indicate someone under financial stress, due to problem gambling. It therefore feels that it has a duty to protect consumers by preventing them using credit cards in this way. A call for a consultation period, during which the public can make their views known seems an objective way forward.

The industry, however, points out that ordinary members of the public, who don’t have strong feelings about the issue, are unlikely to respond. Meanwhile, those groups that are simply anti-gambling, and will seek any means to restrict an activity they disapprove of, will be greatly over-represented in the consultation responses. The Labour party has already adopted the credit card gambling ban as party policy. Keep an eye on developments via an up-to-date casino review website, such as Casino Wings.

In any case, the financial landscape is now so crowded with products, and ways of transferring money, that any gambler determined to use credit to fund an account, has a dozen different ways to do so. There’s the option of withdrawing cash directly from the credit card, then transferring it to a bank account, although that’s expensive. Many gamblers would choose to take out a new money transfer credit card. These allow the owner to transfer cash from the card to a bank account at a reasonable interest rate. Really determined gamblers may simply transfer normal spending to their credit card, and use the cash in their bank account to fund their online gaming account.

The gambling industry has made very little public comment on the proposals. But their reaction is easy to guess at, given how many customers like the convenience and flexibility of paying by credit card. The stock market reacted negatively to the news of the possible ban, marking down the shares of companies such as the gaming giant GVC, owner of Ladbrokes.

Most punters aren’t problem gamblers, so they will be annoyed at having to put up with restrictions that are aimed at people who have an addiction. Most gamblers would agree that people with a fistful of cards that they are using to run up debts, clearly need protection. However, many ordinary gamblers, who play recreationally, within their spending limits, will feel that they are being penalised rather than protected.