The gambling industry keeps facing the same dilemma, as the restriction of credit cards as a payment method looks like a logical move. However, in practice, it is anything but effective. The ban was initially introduced to stop punters from spending money they do not have, but ended up more symbolic than impactful. For operators, the restriction means extra complexity and a loss of access to insightful user data that could improve risk assessments.
A Policy Built on Good Intentions
The UK was the pioneer in banning credit card gambling back in 2020. According to Greo Evidence Insights and NatCen’s post-restriction analysis, the limitation introduced some friction but failed to change risky behaviours significantly.
Key insights:
- Players with no gambling issues simply stopped using credit cards.
- High-risk punters kept borrowing money through other methods.
- The perception of the ban among the public and support services was generally positive.
Despite this acceptance, credit cards had some value. They were trackable, overseen by the FCA, and offered safeguards like chargebacks. After the removal of the method, players were pushed toward payday loans and shadowy lending options that remain under no official supervision. For operators, this move complicates the tracking of financial behaviours and blocks access to valuable payment pattern signals.
Data Insights and Expert Ideas
Industry veterans argue the credit card ban may have missed the mark entirely. Sarah Ramanauskas explains that desperate users will always find ways to fund gambling, but now those paths are invisible to regulators. Jonathan Michaels adds that credit cards were never great for gambling anyway, with low acceptance rates, high fees, and complex withdrawal processes.
From a fraud perspective, Nick Imperillo reveals that around 75% of chargebacks come from the cardholder themselves due to buyer’s remorse. Operators lose time and money as they fight these. Ironically, removing credit card options might be a relief for platforms tired of dealing with disputes and chargeback losses.
Data from Sightline and other studies also highlight that most punters gamble from bank accounts in credit, and less than 4% use the overdraft type. Charles Cohen notes that deposits from the second kind are even smaller. This shows that cutting credit cards does not mean removing the debt entirely.
More Harm Than Help for Player Protection
The primary goal (to stop gambling with borrowed funds) is not fulfilled. Punters simply shift to less visible and more dangerous options. Affordability checks would likely be more effective, but they require additional effort and regulation. Ms Ramanauskas underlines that it is hard to tell if a gambler manages well or hides serious struggles. That is why the ban of one channel barely scratches the surface.
At the same time, punters who responsibly pay off their balances monthly get connected with at-risk users. The move creates friction where none is needed and removes safeguards from those who might benefit from them most. Mr Michaels suggests that gambling with a credit card still offers traceability and some possibility of dispute protection, even though it is imperfect.
Chargebacks, Compliance, and Operational Trade-offs
Platform owners typically offer many deposit methods, such as PayPal or open banking. The loss of 5%–10% of credit card transactions might not hurt revenue, but it does relieve operators from handling difficult chargeback processes. That is likely why some regions, like Massachusetts and Iowa, already block credit card deposits altogether. This might be the trend others can soon follow.
While banks like Santander step up with alerts and early interventions, the overall monitoring ecosystem is weaker without credit card data. Ms Ramanauskas explains that now, operators must reverse-engineer fund sources from debit cards, which makes the job of identifying problematic behaviours harder than ever.
Overall Restriction Takeaway
The credit card ban may appear like a protective net, but it has too many holes. It removes visibility, complicates risk management, and does not prevent problematic gambling behaviours. For operators, an understanding of the real financial landscape of their players is crucial. That cannot happen when vital data channels are blocked.
Casino Market continues to monitor industry policies and tools to improve player safety and business efficiency. You can always reach out to us for more insights and order the right payment solutions for your platform.
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