Has the UK's prohibition on using credit cards for gambling yielded the anticipated results?
A recent study by the National Centre for Social Research (NatCen) suggests that the UK's ban on utilizing credit cards for gambling, enacted in April 2020 during the COVID-19 pandemic, has had limited effects on gamblers' behaviors. However, the study's authors note that it's challenging to determine if the ban has been beneficial to problem gamblers due to the pandemic's impact on gaming activities.
England Introduces First Credit Card Gambling Ban
In April 2020, in response to the COVID-19 pandemic, England became the first nation to impose a total ban on using credit cards for gambling. Subsequently, nations like Sweden and Australia implemented similar bans. NatCen recently conducted the first study on the impact of this ban on British citizens, focusing on the ban's effectiveness, decrease in financial harm, and impact on gamblers.
Better Communication Required
Although the ban was partially successful, NatCen's research highlights its limitations. Only 57% of gamblers with moderate to high problem gambling were aware of the ban, with lower figures for less problematic gamblers and non-gamblers. Gamblers' categorization was based on the Problem Gambling Severity Index (PGSI).
The ban was generally well-received, but NatCen pointed out the need for better communication, primarily through pop-ups on gambling websites, emails, and social media. People with less internet usage might have struggled to learn about the new restrictions.
Additionally, support services for gambling addicts suggested that a simultaneous restriction on using credit cards for gambling funding would have been more beneficial.
Pandemic Increased Gambling Activity
The NatCen study revealed that the credit card ban had minimal impact on gamblers' overall behavior. The Gambling Commission's investigations revealed little difference in credit card usage for gambling before and after the ban. However, an adjusted model considering PGSI scores suggested that those with higher scores often used credit cards more frequently.
While gambling providers may not be violating the ban, gamblers with high PGSI scores might be utilizing indirect credit card usage, such as cash withdrawals or purchasing National Lottery products, which are unaffected by the ban.
Drawing a definitive conclusion on whether the ban has reduced the number of gamblers is challenging, as the COVID-19 pandemic also led to increased gaming activity due to lockdowns and stress levels.
Bans on Credit Card Gambling Spreading
Numerous countries have banned credit card usage for gambling to address problematic betting behavior and protect players from potential debt. By restricting credit card access, these nations aim to minimize financial risk for vulnerable individuals. However, in Germany, credit card usage for gambling remains legal, despite discussions about implementing similar restrictions.
Lower PGSI Scores Benefit More from Ban
According to the study, the ban primarily helped players with lower problems, with little impact on moderate to severe gambling problems. This also applied to the use of responsible gambling tools. Players with lower PGSI scores were more likely to be informed about these tools and seek additional support from banks and Citizens Advice than those with higher scores.
Although providers of support and treatment facilities had concerns that gamblers might resort to illegal forms of credit, most players with high PGSI scores reported that their behavior would not significantly change.
Tracking players who switch to offshore gambling providers is challenging, according to NatCen.
Despite the ban on using credit cards for online casinos being implemented in Germany yet, the study suggests that similar bans in other countries have shown limited effectiveness in addressing problematic gambling behavior. The study found that lower PGSI scores benefited more from the ban, as gamblers with lower problem scores were more likely to be informed about responsible gambling tools and seek additional support. However, gamblers with higher scores reported that their behavior would not significantly change, making it difficult to track their actions in the absence of direct credit card usage.
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