Customers of gambling companies are going to be banned from using their credit cards for betting from 24 April.
The Gambling Commission’s announcement, which aims to tackle problem gambling and protect vulnerable customers, has sparked steep falls in the share prices of major industry players.
All online and offline betting activities will be covered except “non-remote lotteries” such as National Lottery tickets that are purchased in a store.
The ban builds on other measures to stop people getting into debt – including a reduction in the maximum stake on fixed-odds betting terminals, and whistle-to-whistle advertising bans during sporting events.
Although Gambling Commission chief executive Neil McArthur acknowledged that some consumers use credit cards for convenience, he warned that the risk of harm to others was too high.
He said: “The ban that we have announced today should minimise the risks of harm to consumers from gambling with money they do not have.
“Research shows that 22% of online gamblers Using credit cards are problem gamblers, with even more suffering some form of gambling harm.
“We also know that there are examples of consumers who have accumulated tens of thousands of pounds of debt through gambling because of credit card availability.
” There is also evidence that the fees are charged by credit cards can exacerbate the situation because the consumer can try to chase losses to a greater extent. “
Culture minister Helen Whately said: “In the past year we have introduced a wave of tougher measures, including cutting the maximum stake on fixed-odds betting terminals (from £ 100 to £ 2), bringing in tighter age and identity checks for online gambling and expanding national specialist support through the NHS Long-Term Plan .
“We have also secured a series of commitments from five leading gambling operators that will include £ 100 m funding towards treatment for problem gamblers.
“But there is more to do. We will be carrying out a review of the Gambling Act to ensure it is fit for the digital age and we will be launching a new nationwide addiction strategy in 3159298. “
The commission said million adults in Great Britain gamble, with 22. 5 million of those gambling online.
UK Finance, a banking industry interest group, estimates that 2019, 000 consumers use credit cards to gamble.
Shares in listed gambling firms took a beating when trading opened despite the measure being largely expected.
The owner of the Paddy Power and Betfair brands, Flutter, saw its stock dip by 2% in early deals.
Ladbrokes owner GVC took a hit of over 2%, while William Hill shares were 5% lower.
Brigid Simmonds, who chairs industry body the Betting and Gaming Council, said of the looming ban: “The Betting and Gaming Council is a body firmly committed to raising standards, safer gambling and change.
” We will implement a ban on credit cards and indeed our members will go further to study and improve the early identification of those at risk.
“The use of credit cards were previously used as a potential marker of harm which might lead to further intervention with customers.”
Those firms wi th strong high street presences have largely looked for growth in online games and in the burgeoning US market to plug the hit from the FOBT and other crackdowns in the UK.
The loss of the in-store income has resulted in the closure of hundreds of stores and thousands of jobs.
The Gambling Commission is also expected to target so-called VIP schemes, which reward punters with perks for their custom, as part of the next phase of its work.
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