A new ruling that customers will no longer be able to use credit cards to place bets is ’without doubt the right thing to do’ says an island company which is heavily involved in the e-gaming industry.

The company spoke after it emerged firms face ’tough enforcement action’ from the Gambling Commission once the ban is introduced on April 14 as the UK Government seeks to address the issue of problem gambling.

Campaigners have welcomed the move, which will affect all gambling except lotteries where payment is made face to face, but warned it is only the first step.

Island-based SMP e-gaming Limited is the online gaming compliance division of SMP Group, the global corporate, trust, and professional services company.

no surprise

Tom Collister, senior regulatory compliance officer, SMP e-gaming told Business News: ’Given the increasing negative press surrounding operators, the additional measure to protect consumers comes as no surprise.

’It’s without doubt the right thing to do, with the use of credit cards for gambling having little benefit to consumers, other than those who are unable to gamble with their own funds.

’To ensure the required changes are adopted smoothly, it’s important that operators maintain an open communication line with their payment services providers to understand how they will be managing the changes, and to ensure they are able to provide assurance going forward that credit cards cannot be used.

’Whilst the change will certainly protect some from experiencing harm, operators who truly want to build sustainable relationships with their players must continue to establish realistic thresholds and effective responsible gambling monitoring regimes.’

The Lord Street, Douglas, business, provides multi-jurisdictional licensing, regulatory and compliance advice, support, and training to established and early stage e-gaming operators, platforms, and software providers.

Their 30-strong team has advised and guided more than 75 gaming operators and software providers through the licensing process across multiple-jurisdictions including the Isle of Man.

Safer gambling

Isle of Man based Pokerstars has also given its blessings to the clampdown on clients using credit cards to place wagers.

A spokesman for the parent company The Stars Group said: ’The Stars Group (TSG), including UK brands Sky Betting and Gaming and PokerStars, will implement the credit card ban by the April deadline and ensure that those of our credit card customers who wish to continue to use our products are able to move to alternative payment methods in as seamless a way as possible.

’TSG is committed to safer gambling and will continue to work with all relevant stakeholders to ensure we provide a safe gambling environment for all our customers.

’We welcome the requirement for all licensed operators to join GamStop and we look forward to continuing to work with GamStop to ensure that it provides an effective self-exclusion service across the UK regulated industry.’

GamStop is an independent service that offers consumers the choice to exclude from online gambling for periods of six months, one year or five years.

The Betting and Gaming Council (BGC), which represents the industry, said members ’will go further to study and improve the early indication of those at risk’.

Neil McArthur, Gambling Commission chief executive, said: ’Credit card gambling can lead to significant financial harm. The ban that we have announced should minimise the risks of harm to consumers from gambling with money they do not have.’