The UKGC Clarifies Its Stance on Credit Card Funded Web Wallet Gambling

When the UK Gambling Commission announced their decision to ban all credit card gambling many were quick to point out the massive potential loopholes in the ban. The two largest weaknesses that were pointed out were that any problem gambler with a credit card could withdraw cash from their cards and that the option exists to fund a web wallet with a credit card.

In both instances, the player in question would appear to be abiding by the Commission’s ruling while still incurring the debt it was intended to help to them avoid.

 Slowly but Surely

June 10th saw the Gambling Commission address the latter of these concerns by proving a guideline for both players and operators which clarifies their stance on credit card gambling through Money Service Businesses (MSBs).

They began by clarifying the intention of the ban on credit cards:

“One of our key intentions in banning gambling with credit cards was to maximise the levels of friction during the process of accessing and using borrowed funds for gambling, in order to reduce the risk of consumers experiencing harm from gambling with borrowed money.”

In particular, they stressed the importance of online gambling operators enforcing the spirit of the ban not just its letter. This puts the onus of ensuring that players cannot access web wallets and online money transfer accounts where credit funding is an available option.

Letter of the Law

Based on queries received from operators the UKGC went to great lengths to specifically highlight Revolut as one of the Money Service Businesses which is has struck from the list given that they have confirmed that their customers can fund Revolut via credit card transactions.

In their guidance on MSBs the Commission state:

• Operators must satisfy themselves that customers of that MSB cannot fund their e-accounts or e-wallets with credit card deposits and then use those funds for gambling
• Operators will need to reject all payments made through such MSBs that have not developed a ‘block’ to prevent credit card deposits being used for gambling through their e-account or e-wallet facilities

This ensures operators bear the responsibility of ensuring that any businesses that transmit or convert money and which can be funded via credit cards are not exposed to UK players.