The UK’s ban on gambling with credit cards, introduced in April 2020, was primarily designed to reduce high-risk gambling. The credit card ban created a barrier for customers who borrowed money to gamble, including low-risk, casual gamblers with no reported problems from gambling.
Gambling with Credit Cards Ban has Disproportionate Outcome
The study conducted by the National Centre for Social Research (NatCen) revealed the impact has been disproportionate, as it affected individuals with low or no risk of gambling-related harm rather than the high-risk gamblers bracket that it intended.
The study, commissioned by the UK Gambling Commission, found the ban had a more noticeable effect on casual and low-risk gamblers, who were less likely to use credit cards for gambling post-ban. Among these groups, there was a significant reduction in credit card use for gambling, as well as a broader reflection on gambling behaviour and financial management. Many of these individuals saw the policy as a helpful friction that encouraged better financial decisions.
Minimal Impact
However, the primary function of the ban was to target individuals with severe gambling problems, but the ban has had minimal impact. NatCen’s research revealed high-risk gamblers either found alternative methods to fund their gambling or continued to gamble without any significant change in borrowing behaviour. The overall proportion of gamblers using credit cards did not drop significantly, remaining stable before and after the ban. The report highlights the introduction of the ban coincided with the COVID-19 pandemic, which may have complicated the behavioural outcomes.
While the UK introduced the ban on credit card gambling, it gained significant attention, and as one of the first jurisdictions to impose the measure, it did come under heavy scrutiny. However, the effectiveness of curbing high-risk problem gambling remains limited. High-risk gamblers, who were most at risk of heavy debt through gambling, were less affected than anticipated, as many continued to borrow money to gamble. Despite this, the ban remains a crucial part of the UK’s broader strategy to tackle gambling-related harm, especially with the rise in living costs, adding additional financial strain on households.
The study suggests more targeted interventions may be necessary to address the needs of those at higher risk of gambling-related harm. At the same time, the ban continues to play a role in helping low-risk gamblers manage their spending.