We have previously written about the various Gambling Commission consultations and encourage operators to often look to see the current consultations for a number of reasons, mainly to determine whether a response to the consultation may be beneficial for them and to assist the Gambling Commission.
Between August and November 2019, there was an open consultation looking into the use of credit cards and the harm it caused to those who gamble. Following this consultation, the Gambling Commission have now announced that they are to ban the use of credit cards for all gambling operators aside from non-remote lotteries.
The ban applies to all online and offline gambling products with the exception of non-remote lotteries. The intention behind not banning credit cards for non-remote lotteries are as a result of them often forming part of a wider retail purchase i.e. with food and drinks therefore those operators that offer both remote and non-remote lotteries will need to review how this is provided.
Although the ban is not altogether a surprise following the consultation, there will be operators that are understandably concerned with how to ensure smooth transition with these changes by April 14 2020. It has widely been reported already that some large online betting operators have seen a fall in its share price as a result of this so change management is key here.
Neil McArthur, Gambling Commission chief executive, said: “We realise this change will inconvenience those consumers who use credit cards responsibly but we are satisfied that reducing the risk of harm to other consumers means that action must be taken.”
This is a huge change to the industry and it has been indicated that this is part of a wider effort concerning the harm associated with gambling and efforts are being made to tackle this. We anticipate similar consultations and debates surrounding the harm caused by gambling and what can be done by regulators to tackle this.
The Culture Minister, Helen Whately, said: “There is clear evidence of harm from consumers betting with money they do not have, so it is absolutely right that we act decisively to protect them.” This continues down the theme of being socially responsible and the harm caused by gambling.
If you would like to discuss this with one of the team please do not hesitate to contact Andy or Sarah on email@example.com or 0113 234 3055.