The National Centre for Social Research (NatCen) has been commissioned to assess the ban on the use of credit cards for gambling.
The UK is the first country to completely ban the use of credit cards for both online and offline gambling.
There is evidence that using credit cards is associated with greater harm suffered by gamblers. Credit cards provide a convenient way to borrow money for gambling, which can lead to substantial gambling-related debt. This can result in direct and indirect financial harm related to gambling.
In April 2020, the UK became the first country to fully ban the use of credit cards for online and offline gambling. The ban prohibits licensed gambling operators from accepting credit card payments, including payments through money service businesses. The credit card ban aims to add friction to the process of borrowing money for gambling, adding a layer of protection for vulnerable groups to reduce gambling-related harm. Notably, the ban was implemented at the start of the COVID-19 pandemic.
Purpose and Objectives
The purpose of this assessment is to evaluate the impact and effectiveness of the credit card ban. The specific objectives of the assessment are:
To determine whether the implementation of the ban meets expectations;
To examine the extent to which the gambling behavior of credit card users has changed due to the ban;
To understand the impact of the ban on the financial harm suffered by those who gamble with borrowed money;
To understand the impact of the ban on other affected individuals and gamblers who have not yet been harmed; and
To examine how the COVID-19 pandemic interacts with the implementation and outcomes of the ban.
The report draws on an evaluation framework developed based on the Theory of Change (ToC), listing the outcomes and assumptions of the ban.
Main Findings
The credit card ban has been successfully implemented, however, information about the ban has not been communicated to all gamblers.
Overall, gamblers, friends and family affected by gambling, and gambling treatment/support providers all view the ban as a positive change.
People with moderate and severe gambling problems are most likely to be aware of the implementation of the ban.
The increased friction caused by the credit card ban does not always lead to changes in gambling patterns.
Compared to people with moderate and severe gambling problems, those with no gambling problems and those with minor gambling issues are more likely to report a reduction in the use of credit cards for gambling and borrowing money for gambling after the ban.
Most gamblers report that their borrowing behavior has not changed after the ban, and almost everyone continues to avoid illegal forms of borrowing.
The possibility of understanding tools to reduce the risks associated with gambling products has not changed.
The impact of the COVID-19 pandemic has added challenges to implementation, making it difficult to distinguish between the impacts of the ban and the pandemic.
The report draws on an evaluation framework developed based on the Theory of Change (ToC), listing the outcomes and assumptions of the ban.
