UKGC Looks To Ban Credit Card Gambling, But What About Payday Loans?

The UK Gambling Commission has been clear on its objective since it began taking firm steps in managing and regulating the countries gambling market – the protection of UK resident from exploitative or harmful gambling practices.

It is, therefore, no surprise that the commission has begun voicing its concerns over the use of credit cards for gambling.

Paul Hope, Executive Director, UK Gambling Commission said:

“Gambling with borrowed money is known to be a risk factor for consumers, so we think there is a need for action.”

Given that the UKGC is not given to flights of fancy or making rash decisions it is fair to say that once a decision has been made it will align with the commission long term view of gambling as a pastime in the UK.

The Writing Was On The Wall

This issue of credit, or rather debt, based gambling has been on the books for several months. February 2019 was the first official call for input on the matter stating that they “want consumers, gambling firms and other interested parties to have their say and provide evidence that will help us make gambling safer”.

It should also be mentioned that in the UKGC’s literature surrounding safe gambling practices they already state that gambling with borrowed money is one of the signs of high-risk gambling and a potential warning sign in terms of problem gambling.

Payday Loan Loophole

One thing the commission fails to address is how a ban on gambling with borrowed money will address the countries primary scourge, the payday loan. These low value, easy access, high interesting bearing loans are commonplace in the UK and could be a dangerous loophole that needs to be addressed.

There is the potential that shutting down credit card gambling will simply lead compulsive gamblers to take out more payday type loans to fund their behaviour.

Given that the average credit card company offers consumers 19%-23% APR while payday loans offer 500%-2000% APR it would be prudent of the UKGC to first ensure that there is a control measure in place to protect the public from the absurd interest rates of payday loans before shutting down credit card wagers.

Is The UKGC Ready?

With what are clearly the best interests of the public in mind do you feel that the UKGC is currently equipped to make a bold stance on this issue? Do you agree or disagree that payday loans are a greater risk than credit card debt?

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