The UK Gambling Commission (UKGC) has released new guidance for operators on its website, which reiterates what is and isn’t included in its credit card gambling ban.
Operators are not allowed to accept any credit card payments whatsoever, whether that comes directly or via a money banking service (MSB).
The credit card ban for UK gambling payments was implemented in April, having originally been announced by the UKGC and Department for Culture, Media and Sport (DCMS) in January.
In addition to outlining what can and can’t be accepted as payment options, operators have been given points on what to do to ensure they remain compliant with these laws.
What does the credit card ban not allow in terms of electronic payments?
New licence condition 6.1.2 states that it:
“prevents gambling operators from accepting payments by credit card either directly or through any MSB (such as an e-wallet or other fintech and electronic money institutions enabling e-money transfers) which allows credit cards deposits.”
The UKGC also clarified in more detail what this licence condition fully entails.
“We explained in the credit cards consultation and in our responses that this would mean that operators could not accept any payment through an MSB unless the MSB has prevented the use of credit cards for gambling through their services. This includes, for example, circumstances where an MSB allows its customers to transfer funds from a credit card into a wallet or account which could then be used by the customer to make gambling deposits.
“For clarity, and further to specific queries raised by operators, this includes electronic money institutions such as Revolut which has confirmed that its customers can add money using credit cards. Operators must, therefore, put systems in place to prevent gambling payments from these products.”
The Commission also mentioned that there are similar services to Revolut, which not only operate in the UK but also allow individuals to deposit via credit card. This money could then potentially be used for gambling purposes. The UKGC is concerned that while Revolut has taken the necessary steps to adhere to regulations, it’s possible that other electronic money institutions have not.
What is actually allowed, then?
While MSBs (including e-wallets such as Neteller and Skrill) cannot be funded by a credit card, they can still be used.
Before listing these services as a payment option, regulated operators must be certain that deposits cannot be made through the use of credit cards. If they are unable to guarantee this, then all transactions from said payment service providers must be blocked.
In its reiterated guidance, brands have been given the following two bullet points to adhere to.
- 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.