What Are the Reasons for the Credit Card Ban?
Sources in the Gambling Commission estimated that there are 24 million adult gamblers in Britain. Out of those, around 800,000 adults are betting with credit cards to gamble as of 2018.
The stated reason for the ban is to prevent a significant amount of financial harm that gambling can create. The goal is to minimise economic damage to consumers by banning them from using money that they do not physically have on an online sportsbook.
Neil McArthur, CEO of the Gambling Commission, stated that “22% of people who place bets online and primarily use credit cards are problem gamblers.”
With that in mind, the goal of this law is to prevent citizens from creating gambling debt by creating a credit card ban when gambling.
When Will the Ban be Put in Place?
The credit card ban in the UK on betting will take effect as of April 14th, 2020.
How Will the Ban Affect the iGaming Companies/Industry?
The ban is an unprecedented shift for the entirety of the iGaming industry and feedback from the more prominent companies has been relatively mixed. This new regulation is a massive inconvenience to gamblers and companies who have shown responsibility.
It seems as if this decision was in the works for a while as the topic of responsible gambling in society has recently become relevant.
Gambling makes up a significant portion of the entertainment industry, and online casinos make it fun and convenient. The UK government is making the argument that it has been increasingly more difficult to control many aspects of online gambling in recent years.
For example, it is nearly impossible to tell with certainty whether or not the user is underage. When the ability to pay with a credit card is added, it can create a lot of plenty of fraudulent activities.
The impact of the iGaming industry will inevitably be more regulations. The Gambling Commission seems quite intent on imposing new rules to keep the casinos on a tight leash. More rules for the casinos means loss of customers, legitimate or otherwise.
If this move is the least bit effective, there might be stricter regulations on the horizon.
What Are the Advantages and Disadvantages of the Ban?
One advantage of the ban is that problem gamblers will not be tempted to reach for their cards to fund their accounts. There are also other possible positive outcomes. Tighter identity checks will ensure that underage users aren’t gaining access to various operators, and at the same time, it will prevent a lot of ID and credit card theft.
Another positive outcome is for those who genuinely do have a gambling issue. This is a real addiction that affects millions of people worldwide. The GAMSTOP ID system will make it possible for those who know they have impulse issues to stop themselves from gambling.
The ban also comes with its fair share of disadvantages. For instance, it will be much more difficult for responsible adults to fund their gambling. Not only will this make funding an account more complicated, but now the user must pass several ID checks, including the newly implemented GAMSTOP system.
It will also be much more challenging to get fraudulent charges reversed if there is ever an issue. Typically, credit card companies have a much easier time reversing the charges on an account that has been used fraudulently. They offer much more protection than the standard debit card purchase.
How Might the Betting Companies Offers and Promotions Change in the UK?
The UK Gambling Commission has announced that all online gambling and sports betting UK online bookmakers must participate in the GAMSTOP scheme and offer the service to their customers as of March 31st.
GAMSTOP is a privately operated service that allows consumers the option to self-exclude themselves from any online gambling for periods of 6 months, one year or five years. The system logs the user’s details, and each time there is an attempted login or new registration, GAMSTOP checks the name against the database and the service is then denied.
Online casinos will be able to provide the same online betting offers as long as they comply with the new regulations in payment options and GAMSTOP provisions.
Most sites are trying their best not to interrupt service to their UK based punters. They make up a great deal of their revenue, so they are doing everything they can to comply with the new regulations and work with customers to make sure their accounts stay intact and operational.
What Does the Ban Mean for Players Opening New Accounts?
The ban means that players who are opening new accounts must find a way to fund it other than by credit card in the UK. They must also pass the GAMSTOP restrictions that will check their credentials against the private database of users who opt-out of online gambling.
After April 14th, users who sign up with new accounts will have to pass stricter ID verification and will need to fund their account with either a debit card or cash deposited into their account. Other alternatives include eWallets such as Paypal and Skrill, and cryptocurrencies such as Bitcoin and Litecoin.
The idea isn’t to restrict responsible players from placing a bet online on a football match, but to make it more difficult for problem gamblers to use the money they don’t have.
How Will Already Existing Accounts with iGaming Companies be Handled?
While it is up to the individual gaming company to make sure they are complying with the new regulations, most existing accounts will not be affected. The only thing that will change is the method of payment.
For example, if a user’s account is connected to their credit card, they will no longer be able to use that payment source to add funds to their account. Users can use other accepted methods, as long as they pass the GAMSTOP id check.
Will There be Fees for Players Depositing or Withdrawing Funds?
iGaming site operators will be banned from accepting credit card deposits after April 14th. Between eWallets, crypto, debit cards, and bank transfers, you can add funds to your account. Players can use services such as PayPal and Neteller to fund their accounts. Of course, both of these services will require a service fee to transfer.
Neteller and PayPal are both online money transfer sites and are easily linked to existing bank accounts. Both of these services charge a fee to transfer money. Most users find it worth the capital. This is because eWallets encrypt your information, and offers excellent customer service.
It is also possible to use a crypto (depending on the site) to fund the account. The downside is that you’ll also be intermediary fees involved.
What are Good Payment Options Besides Credit Cards?
iGaming site operators will be banned from accepting credit card deposits after April 14th. Between eWallets, crypto, debit cards, and bank transfers, you can add funds to your account. Players can use services such as PayPal and Neteller to fund their accounts. Of course, both of these services will require a service fee to transfer.
Neteller and PayPal are both online money transfer sites and are easily linked to existing bank accounts. Both of these services charge a fee to transfer money. Most users find it worth the capital. This is because eWallets encrypt your information and offers excellent customer service.
It is also possible to use a crypto (depending on the site) to fund the account. The downside is that you’ll also be intermediary fees involved.
Can I use an Online Bank from the UK such as Revolut and Monese to Add Funds to My Account
Unfortunately, many popular bookmakers are no longer accepting Revolut. Revolut was not a legitimate bank when it started, but the European Central Bank has granted it an EU Banking license.
However, it does not have a full UK banking license at this time. In the past, many bookmakers allowed deposits with Revolut. Recently, Revolut started blocking many transactions from these sites.
There are a few bookies that still accept Revolut, but they may also block these sites in the future. You shouldn’t use a Revolut card for transferring funds to UK online betting companies. This is because the majority of the popular UK betting websites no longer support Revolut transactions.
In the future, if Revolut can secure a full UK banking license, this might be a viable option. In the meantime, the easiest way to access the most popular gambling sites is with a debit card or Paypal account.
If you are set on using your Revolut card to gamble online, it is still possible with a limited number of bookmakers. However, this list is rather small and is likely to continue shrinking as more and more sanctions are being passed by the UK.
What is Better: Cash Deposited Into an Account or Using a Debit Card for Betting?
Generally speaking, betting with debit card will allow players to bypass a lot of the fees associated with depositing money into an account. Unless the player has no fee transfers on the checking account, it is better to use a debit card directly.
Using a debit card is as simple as using a credit card. However, the money is automatically deducted from the player’s banking account rather than being billed.
Getting a debit card in the UK is fast and easy. Go to the bank of your choice, or the bank that you use already and open a checking or savings account. Typically there are no fees as long as you deposit a certain amount of cash or set up an automatic payment system with your employer.
Once you have an account, you can simply request a debit card in person or even online in some cases. Most banks offer a Visa or Mastercard version of the checking card, which will make online purchases much more accessible.
After your card is activated, you can use it just like a credit card, as long as your account has a positive balance. Make sure your bank does not have any overdraft fees and always be mindful of the remaining balance.
What Can You Do if Bookmakers Don’t Allow Skrill, Neteller or PayPal?
If your bookmaker does not allow Paypal, NETeller or debit cards, your only other option is to fund your account with a debit card, wire transfer or cryptocurrency. A list of bookmakers that accept crypto payments can be found here.
To fund your crypto wallet, you must either find a Bitcoin ATM or use a bitcoin exchange such as Coinbase or Kraken. Several bitcoin debit card options make exchanging cash into crypto simple and easy.
Some intermediaries will change cash to coin and vice versa. When dealing with an online exchange, make sure that it is trusted and verified. There are many scams when dealing in cryptocurrency, so be sure to read trusted reviews before depositing any cash
Is a Larger Free No Deposit Bonus or No Deposit Sign Up Bonus a Short Term Solution For Anyone Inconvenienced by the New Legislation?
There is no doubt that these new rules and regulations are going to turn off new and casual gamblers to online casinos.
Recently many online bookmakers have been offering no deposit bonuses. This occurs when players sign up or deposit a certain amount of cash on their platform.
This is an excellent way to attract current gamblers. However, it’s doubtful that it’ll attract those who have never gambled before.
The current restrictions require a lot of effort for the potential gambler to set up their account. With these restrictions in place, new and casual players are unlikely to cash in on these offers. Current gamblers should take advantage of these no deposit bonuses while they have the chance.