UKGC – Credit boycott applies over all innovation verticals
The UK Gambling Commission (UKGC) has this afternoon reminded operators that its ban on credit card transactions applies to all-digital payment processing services.
Having implemented licensing condition 6.1.2 on 14 April 2020, the UKGC underlined that its credit card restrictions apply to all-digital payment services including – e-wallets, e-money transfers, mobile banking apps and further Fintech services that allow credit financing to UK consumers.
The UKGC stressed that its new legislation was introduced to ensure ‘maximum levels of friction’ for players seeking to access credit financing in order to gamble, in order to protect vulnerable consumers and problem gamblers.
The ban on credit transactions also applies to ‘transferred funds’ from credit cards to e-wallets, which operators must ensure are not processed.
The Commission pointed to popular mobile banking app Revolut, which allows its customers to add money using credit cards, stating that operators ‘must put systems in place to prevent gambling payments from these products’.
Adhering to new licensing conditions, UK operators must ensure they have met the following requirements on players financing their accounts:
“Operators must satisfy themselves that customers of that Money Service Business cannot fund their e-accounts or e-wallets with credit card deposits and then use those funds for gambling.
“Operators will need to reject all payments made through such MSBs that have not developed a ‘block’ to prevent credit card deposits being used for gambling through their e-account or e-wallet facilities.”