UK: Thriving online gaming business faces the impending ban on credit card payments

UKGC regulates online gambling

The Gambling Commission, which answers to the government’s Department for Culture, Media and Sport regulates the industry (with the exception of spread betting which is regulated by the Financial Conduct Authority) under the terms of the Gambling Act of 2005. Among other things, they ensure that operators which offer gambling services, including online, meet the necessary standards. When it comes to providing online gambling services to UK residents, only companies whose operations are based in the UK can be issued with licenses by the Gambling Commission. However, the organization has a whitelist of approved gambling jurisdictions. Operators who obtain licenses from within those jurisdictions may also service UK customers. The Commission has the power to issue a license to gambling operators and impose fines or revoke licenses if necessary.

There are many land-based casinos and poker rooms throughout the region, and hundreds of retail betting shops. There are also a number of UK based gambling sites and many more foreign-based sites that legally provide their services to UK residents.

Success of online casinos

Players can gamble using their PCs, mobile devices and tablets around the world. People can play anywhere and anytime, whether you’re at home or on the go with a smartphone. Another reason for the success of online casinos is the progressive jackpot, which can reach massive amounts. Besides, the strength of UK online casinos also lies in the fact that they accept players from around the world. And the country goes the extra mile to protect casino players by making sure the casino sites comply with specific rules and regulations.

Safety

Gambling establishments licensed by the UKGC providers the end users with a safer gaming environment that’s agreed to the rules and regulations set out by the commission. All sites with a license agreement from the UKGC are regulated for fair gaming and tested at random.  Besides, higher levels of security are required on firewalls, payment methods, player security, and other measures set out by the commission.

Online gambling increased in 2019

In an annual gambling participation report recently released by the Gambling Commission, the percentage of participants who had engaged in mobile gambling in Great Britain over a four-week period was found to have risen 6% in 2019 compared to the previous year, to 50%. The total number that had gambled online was up 3% at 21%, and 56% of those online gamblers had more than one online account, with an average of three online accounts for every participant. Total gambling participation in Great Britain rose 1% from 2018, with 47% of respondents confirming they had gambled in the past four weeks.

Credit card payments to be banned next month

In January 2020, the Gambling Commission announced that gambling businesses are to be banned from allowing consumers in Britain to use credit cards or e-wallets to bet from 14 April. The move comes two years after charity groups including GambleAware and Citizens Advice urged the government to implement the policy to protect people from sliding into addiction.

Major betting websites including PokerStars, Betfair, 888 and Bet365 all allow their customers to make deposits online using credit cards, which has led to warnings from campaigners that gamblers risk racking up huge debts.

Future revision of the law

The British culture minister, Helen Whately, went beyond that measure, and said: "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 2020.”