eGaming and gambling addiction under the spotlight.
What's the issue?
eGaming and gambling more widely, continue to be under the regulatory spotlight and gambling addiction as well as the targeting of vulnerable individuals are seen as online harms which need to be tackled.
According to research carried out by the Gambling Commission, 22% of online gamblers using credit cards to gamble are classed as problem gamblers with more at some risk of harm. While the Gambling Commission recognises that some consumers use credit cards for eGaming out of convenience, it also says it is too easy to accumulate debt which grows due to fees and then leads to consumers chasing losses to an even greater extent.
What's the development?
The Gambling Commission has announced it will ban gambling businesses from allowing consumers in Great Britain to gamble using credit cards. The ban will apply to all online and offline gambling apart from non-remote lotteries from 14 April 2020. Online gambling operators must also participate in the multi-operator self-exclusion scheme GAMSTOP which allows consumers to self-exclude across operators with a single request.
The Gambling Commission is also reminding operators to check their games meet the required transparency and safety standards after six operators were told to remove products offering 'feature buy-in' on slot-style games. This allowed users to stake significant amounts of money to play the bonus features without going through the initial stages of the game.
The head of mental health services in England has written to five major gambling companies urging them to take action to tackle gambling addiction and criticising a number of practices including offering incentives to encourage gamblers to spend more money such as VIP treatment and free bets.
What does this mean for you?
eGaming businesses will not only need to comply with the credit card ban and sign up to GAMSTOP, they also need to check their games meet the required transparency and safety standards.
