Credit Card Bans in Gambling: Logical Measure?

Credit card bans for gambling have become a focal point of regulatory debate, promoted as a tool to protect vulnerable players from spiraling debt. At first glance, the idea appears straightforward: banning credit cards should prevent gamblers from betting with money they do not have, thereby reducing harm. However, the reality proves more complex, raising questions about whether such bans are primarily logical safeguards, emotional gestures, or a mix of both — and what consequences they hold for the gambling industry and consumers alike.

The UK’s Groundbreaking Ban and Mixed Results

The United Kingdom was among the first countries to introduce a credit card ban for gambling in 2020, setting a precedent later examined in detail by the National Centre for Social Research (NatCen) under commission from the Gambling Research Exchange Ontario (GREO). The research indicated that while the ban’s implementation was robust, its impact on gambling behaviour was “partial” at best. Players experienced increased friction in using credit cards, but this did not consistently translate into reduced gambling with borrowed money.

The Covid-19 pandemic, coinciding with the study period, may have influenced these findings, but the study’s large sample size and methodology lend credibility to its conclusions. Interestingly, the ban was generally seen as a positive development by gamblers, their families, and treatment providers, despite mixed evidence on behavioural change.

The appeal of credit card bans extends beyond evidence of efficacy, reflecting a symbolic stance against gambling harm. Countries including the Netherlands, Ireland, and Sweden have explored or adopted similar measures. Swedish Finance Minister Niklas Wykman, for example, stated simply that “players should not bet with borrowed money,” framing the ban as a straightforward consumer protection.

However, critics argue that this view oversimplifies the issue. Removing credit cards may hinder regulators’ ability to monitor gambling funds, as players might turn to less visible borrowing methods such as payday loans or informal credit arrangements. These alternatives often lack the oversight mechanisms that credit cards and traditional banking systems provide.

Research and expert commentary suggest that credit card bans may inadvertently push problem gamblers towards riskier financial behaviour. Individuals with gambling issues reportedly find other credit sources to fund their betting, often outside regulated frameworks, exacerbating harm rather than alleviating it. Payday lenders, for example, operate with minimal oversight and can exacerbate financial distress among vulnerable consumers.

At the same time, financial institutions are increasingly engaged in harm prevention. Santander, for instance, has implemented interventions like targeted communications to customers flagged for gambling-related financial strain. This indicates a growing role for banks in addressing gambling harms through existing customer protection frameworks.

Credit Card Usage Among UK Consumers

Despite widespread concerns, data shows that many consumers use credit cards responsibly. The UK Finance January 2025 report revealed that 17 million credit card accounts were paid off in full monthly, even amid challenging economic conditions. This suggests that not all credit card use — including for gambling — is inherently problematic.

Experts also point out that credit cards are not an ideal payment method for gambling due to their design. Unlike debit cards, credit cards involve more complex transaction processes and often incur cash advance fees, which many users may not fully understand. These fees can serve as a deterrent but also complicate the user experience.

From an operational standpoint, credit card bans simplify certain aspects for gambling operators by reducing exposure to chargebacks — disputes where players contest transactions after the fact. While chargebacks remain a notable issue, they reportedly account for only a small fraction of overall transactions and losses.

Moreover, gambling operators provide numerous deposit options beyond credit cards, including debit cards, digital wallets, and open banking solutions. In several U.S. states, credit card gambling deposits are already restricted, and some industry observers suggest broader adoption of such restrictions may streamline operations without significantly impacting revenues.

Player Protection and the Challenges of Affordability

The fundamental challenge remains ensuring that measures genuinely protect those at risk. While credit card bans may reduce access to one form of credit, they do not necessarily stop problem gambling or prevent individuals from using other, often less visible, sources of funds. The nuanced reality is that credit cards mean different things to different people — from tools of convenience to vital financial buffers.

Effective regulation, therefore, hinges on well-designed affordability checks and comprehensive risk assessments. Identifying who is genuinely vulnerable versus who is using credit responsibly is critical but difficult, complicating the evaluation of any single intervention like a credit card ban.

For those experiencing moderate or high-risk gambling problems, the credit card ban didn’t change behaviour; they simply found alternative, often less regulated, borrowing methods—potentially increasing their risk.

Conclusion

Credit card bans on gambling deposits reflect a mix of logic and emotion, driven by the desire to curb gambling-related harm but constrained by practical realities. While such bans may improve perception and add friction, evidence suggests they only partially achieve their intended effect and risk pushing vulnerable players toward more harmful borrowing methods.

The industry and regulators face a delicate balance: ensuring player protection while avoiding unintended consequences that may exacerbate harm. As financial institutions increasingly participate in harm prevention, and operators diversify payment options, the role of credit card bans is likely to remain a contested but evolving element of gambling regulation.