Betting Companies to Fall in Shares After New Credit Card Gambling Ban

A new ban on credit cards is to be put into force this coming April. The ban is meant to aid the gambling industry and protect the vulnerable gamblers.

By: James Currie

Initially the new rule was to ban credit cards for online gambling only, however last week the move was made to apply the ban to offline betting also, with the exception of over-the-counter lottery tickets.

It is estimated that 800,000 out of a total of 24m adults in the UK gamble, according to UK finance. 50% of these numbers are experiencing harmful effects as a result of gambling. There is also apparently too easy to deposit using credit cards on online gambling sites and the “level of friction”  that is being introduced will combat this problem with maximum efficiency.

The ban will also cover e-wallets in credit cards but officials say that more needs to be done to prevent payday loans and the use of online payment systems such as Paypal and Skrill.

Bookmakers took an initial hit on January 7th but have apparently recovered their losses since. Flutter, the parent of Paddy Power and Betfair was down almost 3% at 107.5p. William Hill was down almost 2% at 182.5p and GVC (that owns Ladbrokes) was down 1% at 911p. 888 however was one site that was left unchanged and still remains at 152p.

One problem gambler said that he had lost over £110,000 loaning from banks where “neither the borrower nor the operator seemed concerned at the scale of borrowing.” He said that “you are quite easy to function with such a spiralling addiction for many years”.

The government has also issued a proposal to the Football Association asking them to end deals with gambling companies that are allowing to stream FA games to the users. This is another attempt at trying to reduce persons incentive to gamble. The 2005 Gambling Act is also planned to be revisited.

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