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The Challenges Facing the Online Gambling Sector with the Possible Impending Ban on Credit Card Transactions

George Miller

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The Challenges Facing the Online Gambling Sector with the Possible Impending Ban on Credit Card Transactions
Reading Time: 3 minutes

 

The Gambling Commission (GC) is currently considering whether to ban the use of credit cards in online gambling transactions, so turbulent times may lie ahead for online operators. The culture secretary, Jeremy Wright has voiced plans to haul bookmakers and major retail banks into meetings to discuss the use of credit cards being used for gambling purposes, and his proposal comes on the back of startling statistics which reveal as many as 20% of deposits are coming from consumers who do not directly have access to the funds in which they’re using.

The Labour Party has also stated that should they gain power in the next general election, they would impose a ban on gambling with credit cards. GC requested evidence from numerous operators at the start of 2019 and later confirmed that they’d be holding a twelve-week consultation which began sometime in August. Several key interest points were detected around the use of credit cards in gambling online and these included:

  • Alternative forms of gambling to determine whether consumers are borrowing in the form of overdrafts or loans and if this was the case, both financial and gambling sectors would need to work together to protect customers from harm.
  • E-wallets: many operators have no means of knowing where the funds have come from when deposits are being made through this funding source. Future proposals would require those e-wallet services to take necessary action if regulatory measures are introduced.

Harry Christodoulou, the founder of Bingofind, who’s been covering this issue with other publications said: “We’ve been talking to affiliates from the iGB community trying to see how they plan to handle this potential issue, but they don’t seem to be that worried, for now.”

Any Impact on Land-Based and iGaming Operators?

There is one major advantage when it comes to using a credit card for gambling transactions and this is the fee that consumers face when making a deposit. The vast majority of players seek the methods which allow them to bypass this fee and this means alternative deposit methods such as debit cards and e-wallets, both of which require there to be funds in the account or you can’t use them. There is a mass speculation surrounding credit cards and problem gambling with many charities worrying that gambling with credit cards can encourage people to gamble beyond their financial means. A shocking statistic from Totally Money and Defaqto revealed how consumers had raked up a staggering £23.8 million solely in interest and transaction fees by the use of credit cards during the 2018 World Cup. Britons wagered £2.5 billion on the football tournament and 20% of this sum derived from credit card payments.

A period of uncertainty is circulating the gambling sector and as a result, PayPal, one of the world’s leading e-wallet services has pulled their services from German online casino players, will they do the same here in the UK? We’re fortunate to have one of the most regulated markets in the world, so the likelihood of this happening is slim. A domino-effect could take hold across Germany; if one e-wallet has shut down their services, many others a likely to follow suit; PaysafeCard etc could follow suit and the German gambling market could come under close scrutiny once again.

Regulations are there for a reason and most operators welcome them, even if they could hurt them in the long run, but if they stop under-age gambling and put an end to problem gambling, then they can’t be all bad. The outcome of the GC consultation on the use of credit cards in gambling is due to surface mid-November.

George Miller started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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Pragmatic Play’s Live Casino Available With BetConstruct

George Miller

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Pragmatic Play’s Live Casino Available With BetConstruct
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Pragmatic Play, one of the leading software providers for video slots, live casino and bingo, has taken its Live Casino offering online with software solutions provider BetConstruct.

BetConstruct customers will now have access to one of the most cutting-edge Live Casino portfolios in the market, with games including Live Blackjack and Live Roulette delivered from Pragmatic Play’s state-of-the-art studio.

This latest landmark for the provider’s Live Casino vertical comes after the recent announcement that Pragmatic received a Recognition Notice to offer Live Casino and Bingo products to MGA licensed operators. The supplier was also granted an operational license by the Romanian regulator earlier in 2019.

Yossi Barzely, Chief Business Development Officer at Pragmatic Play, said: “We are very pleased to have launched our cutting-edge Live Casino product with BetConstruct.

“BetConstruct have a very exciting product, and we look forward to continuing to grow with them as a partner.”

Edgar Mkrtchyan, Gaming Group Product Manager at BetConstruct, said: “We are happy to see our partner Pragmatic Play expand their gaming catalog by launching a live casino. Undoubtedly, their true omni-channel offering will find a great success through BetConstruct’s Casino Suite and deliver an immersive gaming experience to all players.”

Pragmatic Play has signed a series of significant commercial agreements over the past 12 months in regulated markets, expanding its reach with operators including PokerStars, Kindred and Casumo.

The provider’s entire portfolio of video slots, bingo, live casino and other games are all available via a single API.

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Evolution Signs Landmark Deal With Flutter Entertainment Brands Paddy Power And Betfair

George Miller

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Evolution Signs Landmark Deal With Flutter Entertainment Brands Paddy Power And Betfair
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Evolution Gaming, leading provider of Live Casino solutions, has announced that it has signed what it describes as “a major Live Casino deal” with Flutter Entertainment brands Paddy Power and Betfair.

Flutter Entertainment is a global sports betting, gaming and entertainment provider, with a strong product and brand portfolio serving millions of customers worldwide.

The agreement will see the group’s Paddy Power and Betfair brands offer Evolution’s entire Live Casino portfolio, including Evolution’s exclusive game show titles such as Deal or No Deal Live and Lightning Roulette, as well as its international native speaking Roulette package.

Sebastian Johannisson, Chief Commercial Officer at Evolution Gaming, commented: “This is a landmark agreement for Evolution, a significant deal that we have been working towards for a number of years. We are thrilled at the prospect of Flutter Entertainment’s powerhouse brands Paddy Power and Betfair presenting our world-leading Live Casino offering and we are sure that their players will relish our live game shows offering.”

Johannisson added: “We are honoured to be working with Flutter Entertainment. Our companies are very well matched in terms of ambition and culture, and we are confident that we are the perfect partner to take their Live Casino offering to the next level.”

Mike Phelan, Commercial Director at Paddy Power, said: “We have seen the strong performance from Evolution’s product line over recent years. We are incredibly excited to be able to extend our offering in the Live Casino space by offering our players exclusive big brand live games such as Deal or No Deal Live and Lightning Roulette, to name just two of the big attractions in the Evolution games portfolio.”

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Sportech Joins WLA

George Miller

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Sportech Joins WLA
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Sportech, the international gaming technology business, is pleased to announce that it has been accepted as an Associate Member of the World Lottery Association, a global professional association of state lottery and gaming organizations from more than 80 countries.

Sportech joins WLA’s associate members from the worldwide lottery supplier industry on the basis of the company’s longstanding expertise as a provider of enterprise gaming solutions to national lottery, pools lottery, and charitable sports raffle operators.

Building on established lottery supply contracts in North America, Europe  and the Caribbean, Sportech is making significant investment in lottery with technology and talent secured with the 2019 acquisition of Lot.to Systems, the integration of lottery bets on Sportech’s Quantum™ System software, and rapid growth in its Bump 50:50 sports raffle business.

Julian Bewley, Chief Commercial Officer of Sportech PLC, said, “Sportech are thrilled to join the WLA as an associate member and for the opportunity to contribute to the industry and its growth through our passion for making lottery games more appealing, accessible, and fun and to giving lottery operators innovative tools and strategies to propel their business forward.”

 

About Sportech:
Sportech PLC is the international betting technology business delivering services and solutions to gaming companies, sports teams, racetracks, casinos and lottery clients.  Sportech systems process US $12 billion in bets annually for gaming operators across 37 countries.  In addition, the Group owns and operates sports gaming venues in ConnecticutUnited States, under exclusive licenses.

Licensed by the UK Gambling Commission, Sportech’s lottery solutions enable some of the biggest regulated gaming companies in the world to generate millions in lottery bets every day with turnkey solutions for POS and iLottery with a mobile-first design approach.

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