The UK Gambling Commission has published a new interim review on the implementation of its credit card ban, which it describes as ‘successful’. The report says the action is popular among consumers and has not resulted in unintended adverse consequences, the commission said in a press release consolidate credit card debtconsolidate credit card debt
First introduced in April 2020, the credit card ban seeks to add another layer of protection for consumers, while adding friction to the process of gambling with borrowed money.. According to the public body, evidence has revealed that some players facing high debt levels are using consolidate credit card debt to finance their operations.
The new report found that consumer support for the ban has been “largely positive”. Comments and data received from players “support the conclusion” that the ban helps people bet within their means and stay in control of their gambling.
“The successful implementation of the industry-wide ban and the impact on consumer behavior and financial spending that we have monitored so far is an encouraging sign that the ban reduced consumers’ dependence on gambling with borrowed money,” noted Andrew Rhodes, Acting CEO of the Gambling Commission.
Besides, the proportion of consumers reporting gambling with other forms of borrowed money has remained stable, and there has been no increase in reports of illegal gambling related money lending.
The commission says that while consumers are aware of ways to legally circumvent the credit card ban, many more people who previously played with a credit card now play with available, not borrowed funds than other types of borrowed money.
The regulator also analyzed banking data for the report, which showed no spikes observed for credit card players in money transfers, and no spikes in ATM withdrawals for credit cards at the time of the ban was reported either.
The report further shows that “a large main street bank” observed that the volume and value of gambling transactions with merchant code credit cards were reduced to a very low level.. Continuously low spending for businesses with gambling dealer codes was expected, according to the Gambling Commission, and can be explained by activities outside the scope of the ban, such as lottery spending and competition.
Besides, major e-wallet and e-money providers blocked gaming transactions if funding came from credit cards.
To inform the report, the Gambling Commission used its Online Tracker survey, which collects quarterly data from a sample of around 2,000 adults in Britain; and the Consumer Voice research conducted by 2CV, involving an eight-day online program with 30 respondents.
The regulator says it will continue to assess activity “to ensure there is no increase” in damaging forms of funding for gambling activities. NatCen Social Research has been commissioned to conduct a comprehensive assessment of the ban. The evaluation is scheduled to be completed “early 2023” and the Commission will use the findings, as well as its own monitoring, âTo inform the development of future policiesâ.