The UK Gambling Commission prohibited licensed operators from accepting credit card payments on 1 April 2020, either directly or through third parties. Approximately 22% of credit card users were problem gamblers, so removing credit from gambling reduced borrowing to play and helped prevent unsustainable debt. The ban curtailed a source of avoidable losses and improved casino-client dynamics and responsible play. Credit card companies previously collected transaction fees from deposits and withdrawals, sometimes passed to casinos or hidden from players. The restriction increased transparency and lowered fee-related harms. The Financial Conduct Authority is considering similar limits for credit-card purchases of crypto assets.
The main reason for the ban by UKGC was to reduce the instances of borrowing to play games, which could lead players into unsustainable debt. A long-standing issue with the gambling market is that some players create avoidable debts for themselves. Banning credit cards for gambling closes off that source of potential loss and improves the overall industry quality. Over the years, this change has improved casino-client dynamics when it comes to playing responsibly.
Few people realise this, but credit card companies take a portion of every transaction, either from the users or the merchants. When you deposit or withdraw money from your casino through a credit card, the fees or commissions go straight to the credit card providers. In some cases, the casino must shoulder those fees because it costs money to accept credit and debit cards. That's why some casinos have hidden charges that gamblers only find out when it's too late.
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