With the gambling regulators in the UK fearing the rising number of problem gamblers, there have been calls for stricter measures to be taken by the Government and the major watchdogs that have to take care of the protection of local people from gambling-related harm.
This year, the British gambling sector has faced some changes related to online gambling, and more specifically, to the use of credit cards in placing wagers over the Internet. It was in February 2019 when the UK Gambling Commission (UKGC) revealed its decision to launch a consultation regarding the use of credit cards in online gambling.
The announcement of the consultation took place after some rules for stricter age verification checks were unveiled earlier in February, along with some new limits for so-called free-to-play games. The consultation was open for three months.
UKGC Initiated Consultation on Credit Card Use in Online Gambling Services
Then, in July, the Gambling Commission further revealed that consultation with the public and industry stakeholders would be held on the use of credit cards for online gambling. At the time when this announcement was made, the gambling industry watchdog shared that it was considering to ban credit cards from being used to make online gambling transactions.
According to the regulatory body, such a measure would help the Commission minimise the risks for consumers posed by the chance for them to gamble by using borrowed money. The consultation process was intended to start in the middle of August and the last twelve weeks. As the UKGC pointed out in a statement at the time, the consultation was made to focus on several key points.
In any case, the UK gambling industry regulator was aimed at seeking a replacement of credit cards with another payment method as an alternative when it comes to gambling. Fears that a significant number of people tend to use borrowed money to fund their gambling habits have made the watchdog concerned about the scale that the problem could soon reach, so it believed it was essential to make sure that local financial institutions take proper actions to prevent more harm to be caused to consumers.
HSBC Became the Latest British Bank to Roll Out Measures to Help Customers Ban Themselves from Gambling
Considering the rising concern of the country’s gambling regulator, British banks and financial institutions have not remained indifferent to the UK Gambling Commission’s efforts to bring tighter control to the sector and better protect customers.
HSBC has been the latest UK bank that decided to take measures and allow British customers to ban themselves from spending money with online casino and sports betting operators. In the mid-November, it announced the introduction of some measures that are aimed at helping individuals who suffer from gambling addiction. The largest bank on the territory of Europe revealed that it would offer its British customers the chance to exclude themselves from using their HSBC credit cards for gambling transactions.
As a result of the recently announced decision a new scheme designed in partnership with local gambling charity organisations GambleAware and GamCare was released. The move has been made to address the concerns of the bank’s customers about the impact that betting has on their finances. According to reports, over half a million of the HBSC’s customers gambled on a monthly basis in 2018, and the amount on the average was £52.50.
The move of HSBC has been among the latest proactive measures of local lenders to better control their gambling and the consequences it could have on their finances. Earlier this year, a number of other British banks and financial institutions have revealed similar restrictions regarding credit card use in online gambling sites.
Earlier in 2019, Several UK High-Street Lenders Showed Commitment to Regulator’s Efforts to Tackle Gambling Addiction
In the previous months, several other British banks and financial services providers have revealed they are taking measures against the use of credit cards in online gambling as part of the efforts to tackle the negative impact that compulsive gambling could have on people’s lives.
Earlier in 2019, several British banks, including Barclays, Monzo and Starling, shared they are set to allow their customers to set restrictions on gambling transactions processed through their bank accounts or credit cards. For the time being, the HSBC has been the biggest UK lender that decided to introduce such measures and demonstrate a commitment to local gambling regulators’ policy aimed at tackling gambling participation and problem gambling rates.
On the other hand, in October, the high-street lender NatWest announced that it would offer special counselling sessions for gambling addicts at a number of its branches. The move has been revealed as part of a much larger scheme that could be rolled out nation-wide.
The online payments processor PayPal has also pledged to impose tighter restrictions on the transactions carried out through its system following revelations that it had been allowing British gambling addicts to spend massive amounts of up to £150,000 on a daily basis to fund their gambling.
- Author
Olivia Cole
