UKGC issues guidance to lottery operators on credit card ban changes
Payments by new and existing customers to be included in forthcoming prohibition
The Gambling Commission (UKGC) has warned society lottery operators they will be subject to the ban on credit card usage in gambling when it comes into force in April.
It follows the receipt of several enquiries from operators concerning the impact of the proposed changes. In response, the UKGC has provided a guidance note confirming which will apply to specific lottery types and further guidance on best practice ahead of the ban.
It has been confirmed the ban on credit card usage will be applicable to all online society lottery licensees, all online ancillary lottery licensees and all online ELM (external lottery manager) licensees.
Under the new ban, all online payments, together with any payments made by email, text message or over the telephone constitutes a breach of licensing codes of practice.
This will extend to credit card payments by new and existing customers made via online channels for subscriptions or individual lottery entries.
The use of e-wallets by operators is also covered under the guidance, with the UKGC acknowledging that operators will be required to ensure they only accept e-wallet payments from providers who bar gambling payments by credit card.
To support this, the UKGC has said it has received confirmation that “major wallet providers” will be able to put into place measures to prohibit credit cards being used for gambling within e-wallets going forward.
“We suggest that societies and ELMs also contact any e-wallet providers whose wallets they make available to their customers as a payment option, to ensure they understand how the wallet provider intends to proceed,” the guidance explains.
It has also suggested that operators contact their payment processing service to ascertain how best to prevent credit card payments from being made in advance of 14 April.
In addition to confirming which lotteries will be subject to the ban, the UKGC has also stated that online instant-win game operators will be required to participate in the GAMSTOP self-exclusion scheme.
Usage of the scheme will become mandatory for all UK-licensed gambling operators from 31 March, following activation of the required clause under the licensing codes of practice (LCCP).