Gambling on credit cards to be banned in crackdown

Customers will no longer be able to use credit cards to place bets after the gambling regulator introduced a new clampdown on the industry.

Firms face “tough enforcement action” from the Gambling Commission once the ban is introduced on 14 April as the UK government seeks to address the issue of problem gambling.

Campaigners have welcomed the move, which will affect all gambling except lotteries where payment is made face to face, but warned it is only the first step.

The Betting and Gaming Council (BGC), which represents the industry, said members “will go further to study and improve the early identification of those at risk”.

But the announcement was met with pessimism from investors as gambling firms saw their shares slide in reaction when the markets opened Tuesday.

The SNP welcomed the ban, but called on the UK government to bring forward a comprehensive gambling strategy.

SNP MP Ronnie Cowan, vicechair of the APPG on Gambling Related Harm, said: “Action to tackle problem gambling has been a long time coming and we are finally seeing agreement in Parliament that change is required, but to date the UK government has proven itself utterly incapable to tackle problem gambling.

“If the Tory government continues to refuse to devolve these powers to Scotland, it must now seriously look to introduce a Gambling Act that is fit for the 21st century to tackle gambling-related harm head-on.”

Announcing the decision, Gambling Commission chief executive Neil Mcarthur said: “Creditcardgamblingcanlead to significant financial harm.

“The ban that we have announced should minimise the risks of harm to consumers from gambling with money they do not have.”

Mr Mcarthur said the ban needed to be backed by other action. The government has come under pressure to introduce bans for the use of credit cards over the past two years. The regulator’s own data has shown more than 165,000 customers made £46 million worth of credit card deposits in February last year.

The announcement is the latest blow to gambling businesses after the government introduced a crackdown on fixed-odds betting terminals (FOBTS), which saw the maximum stake for bets cut from £100 to £2.