On the surface, banning the use of credit cards for gambling seems like a practical step—preventing players from wagering with money they don’t actually have. But according to industry experts, research, and regulatory data, the issue is far more nuanced.
UK-based gambling markets introduced a ban on credit cards in online gambling in 2020. An evaluation by the National Centre for Social Research (NatCen), commissioned by the Gambling Research Exchange Ontario, found that while implementation was smooth, the measure was only a “partial success.” Although the restriction created added friction, it didn’t significantly alter the gambling behavior of high-risk users.
Problem Gamblers Shift to Riskier Credit Sources
Sarah Ramanauskas, a noted industry expert, points out the core issue: “For those experiencing moderate or high-risk gambling problems, the behaviour didn’t really change. They still borrowed money and still found ways to fund gambling through credit, just via different methods.”
Ramanauskas argues that, credit card bans, which were also proposed in other parts of the globe, namely in Spain and New Zealand, doesn’t prevent gambling with borrowed money—it just pushes users toward less-regulated avenues like payday loans or informal lenders. “At least with credit cards, FCA processes exist to monitor and protect vulnerable consumers,” she notes.
Santander’s Graeme Cumming adds that banks are increasingly stepping up efforts to detect problematic behavior: “We have built a suite of interventions, including letters and text messages, to provide timely signposting to support for customers at risk.”
Credit Cards: Convenient but Inefficient for Gambling
Despite their ubiquity, credit cards are not well suited to gambling transactions. Andrew Tottenham of Tottenham & Co points out, “It doesn’t necessarily do what it’s intended to do. Is it a good idea that people gamble with money they don’t have? No… Does stopping credit cards stop people from gambling with money they don’t have? No.”
Jonathan Michaels, former Sightline executive, adds that acceptance rates for credit cards in gambling are significantly lower than for debit cards—hovering around 50–60% versus 95%. Furthermore, credit card use often triggers costly cash advance fees, which can prompt customer disputes and chargebacks.
According to Nick Imperillo of GeoComply, most chargebacks in gambling stem from first-party fraud—customers disputing legitimate transactions out of regret. These disputes are common enough that operators have entire teams dedicated to managing them.
Still, as Michaels points out, credit cards represent only 5–10% of gambling deposits. Losing them wouldn’t devastate most platforms, especially since many already offer alternatives like open banking and PayPal.
Does the Ban Actually Protect Players?
Interestingly, Charles Cohen of the Department of Trust shared data showing that 96.4% of gambling deposits came from accounts in credit. Of those that weren’t, most were only slightly overdrawn. “The data here shows a simple truth: credit card bans do not stop people from using credit to gamble,” he says.
With newer, less-regulated credit options like Klarna or payday lenders available, many argue that bans may actually complicate harm-reduction efforts. Ramanauskas stresses that bans eliminate traceable funding sources and make it harder for operators to spot risky behavior.
So, does banning credit cards protect players? Or does it just give regulators and operators the appearance of action while shifting the real problem out of sight?
Source:
“Credit card bans: common sense, or nonsense?”, igamingbusiness.com, Jul 21, 2025
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