Guide around Credit Card Gambling

Photo by Tima Miroshnichenko via Pexels

Whether you are new to the online gambling scene or an experienced head, one of the first decisions a player will have to make is what payment method to use to make a first deposit.

This takes place even before you set a toe on the virtual gaming floor where a myriad of online and live tables games including blackjack, roulette, and poker awaits your presence.

And if that was not enough, the endless virtual rows of online slots titles are ready for you to take them for a spin.

The Early Days

But back to the cashier’s desk. Decades ago, when online casinos first burst onto the entertainment scene, there were limited options in the way of payment methods.

The most widely used and preferred payment methods in the UK were debit and credit cards due to the security provided by a trusted brand such as Mastercard or Visa.

These cards were also used for everyday purchases, so people were already familiar with their operation.

Credit cards were popular amongst the public because of the ability to build a positive credit rating. Assuming that accumulated debt was paid off by a designated deadline, building a good credit history was important for acquiring better mortgage rates for example.

Therefore, if an individual was responsible with a credit card when gambling, there were additional benefits to be had as well as any other rewards associated with spending with a credit card.

Advantages of Credit Cards

Potential to build a positive credit score
Receive consumer rewards and incentives from the card provider
Fast, convenient deposits and transfers
Secure means of money transfer

Disadvantages of Credit Cards

Failure to pay back credit in time will negatively affect a credit score
Not universally accepted on online casino platforms
Slower withdrawal times
Less control over spending

A Change of Mentality

During the formative years of online casinos, one of the main focuses for game developers was producing the most state-of-the-art game possible with the software and technology available at the time.

But while developers were creating a fun, innovative way to play casino games from the comfort of one’s home, law makers were wrestling with a new phenomenon that posed a plethora of problems.

With online casinos requiring a new form of policing for the looming threats of hackers and identity thieves, the UK Government decided to amend the Gambling Act in 2005 to include online gambling.

This led to the formation of the UK Gambling Commission (UKGC), who were tasked with regulating the online gambling industry. They made it their task to tackle problem gambling, which now included the use of credit cards on online casino platforms and online bookmakers.

Spending Beyond Means

The main concern for the UKGC was the idea of players “borrowing” money that they could potentially not afford to fund online gambling.

As a result of the strict stance against problem gambling, credit cards were eventually banned for gambling purposes in the UK in April 2020.

Despite the UK’s ban on credit cards, it is still possible to find a credit card casino in other markets and licensed operators not covered by the UKGC regulations.

The example set by the UK is beginning to spread to other countries such as Germany, France, and Spain, but Italy still permits the use of credit cards on its platforms.

There are mixed approaches in other regions of the world with Australia banning credit cards for gambling in 2024, while Singapore remains a country where credit cards can still be used.

In markets where credit cards are still valid, the same rules of engagement apply, to spend within means. While the same advantages apply in these markets, the same pitfalls also exist.