No one feels safe to enter their debit card details when signing up for a gambling website. Even offline gamblers prefer not to use a debit card or carry cash on a local casino night. In 2020, credit cards are one of the most preferred payment methods for online and offline casinos.
With cryptocurrencies like Bitcoin and Ethereum gaining legal status in Canada, there are fears that online casinos will stop allowing gamblers to pay with credit cards. Casino websites have been targeted by cybercriminals from all around the world—some gamblers sign-up with a fake credit card to scam the casino site.
You would also be surprised to know that not all physical or online casinos accept credit cards. Citizens of the United States are allowed to use their credit card to deposit money or place wagers on offshore gambling sites. However, the Federal Gambling Commission has asked banks to block credit card payments on certain offshore gambling sites.
Similar rules have been implemented in some of the European countries. You will find several of the UK Casinos accepting credit cards. Casinos (mainly online) have grown significantly since credit card payments were accepted. Credit card payment is safe and secure for both parties. But more so for the users, especially when the site they register with has ties with their credit card company (take JCB; for example).
How Does the Gambling Industry Benefit From Credit Card Payments?
The more casinos and gambling sites accept credit card payments, the more the industry benefits. Despite the restrictions on credit card usage, some gamblers manage to use them both online and offline. When a gambler swipes a credit card or punched in the credit card, they are essentially borrowing money to gamble. Hence, even those who cannot afford to gamble, contribute to the gambling industry’s growth.
According to a report by MSN, in 2018, the U.S. Supreme Court allowed states like New Jersey, Pennsylvania, Delaware, Rhode Island, and West Virginia to join Nevada in its legalization. As a result, investors have trusted newer forms of online gambling to work in the United States. Online sportsbooks, casinos, and daily fantasy sports allow a user to purchase points (currency, specific to the website) with their credit cards.
The points can be used to purchase a lottery ticket, pay for online poker, bet on sporting events, or place a wager on any other game. Although, it is the user’s responsibility to ensure whether the money they are paying is not accounted for as a cash advance by their credit card company.
For the same reason, some physical casinos allow users to visit the nearest ATM and pay in cash. This is one of the downsides of paying with a credit card. The casino owner has no way to determine whether the credit card company will consider the payment as a cash advance. Hence, not all physical casinos accept credit cards.
Credit Card Banned in the Online Gambling Industry in the U.K.
This year, the Gambling Commission (UKGC) decided to ban credit card payments on gambling in the United Kingdom. Both tourists and the citizens of the United Kingdom are barred from making credit card payments in physical casinos and UK-based online casinos. Needless to say, this will severely affect the gambling industry in the U.K.
Although insiders and gambling experts in the United Kingdom believe this decision will somehow help the betting industry, in the long run. Since the news broke out in February 2020, betting companies like WH, Bet365, Sky Bet, and Ladbrokes have changed their terms and conditions. Now they have the right to choose who can and who cannot bet on events.
Successful betters are systematically weeded out to maximize company profit. In other words, the winning accounts are being “stake restricted.” On top of that, the above-mentioned betting firms have upped the advertising. You will see a lot more advertisements on television than you did last year. Seems like they have already implemented an innovative strategy to attract new customers.
The Bottom Line
The gambling industry has definitely benefited from the prevalence of credit cards. Although there is no data available to back these claims. With the advancement of technology, a vast number of gambling websites have come to existence. And since always, credit cards have always been the preferred payment method.