UK Gambling Commission Joined by Visa, MasterCard and Paypal in Fight vs. Unlicensed Operators

Last Tuesday, the UK Gambling Commission (UKGC) failed to get the support of the House of Lords when the latter voted down a proposed gambling amendment bill. The failed bill would have given the UKGC authority to block out financial deals between payment service providers and non-UK licensed online betting operators. However, it turned out that the UKGC had an ace up its sleeves, as Baroness Jolly later announced that despite the vote down, Visa, MasterCard and Paypal have already given their voluntary cooperation, by making it their own policy to block out such transactions.  

The services of the three major payment processors are widely used by UK punters for depositing funds or when cashing out winnings in their online gaming account. In light of the voluntary agreement entered into with the UKGC, Visa and MasterCard credit cards as well as Paypal’s e-wallet solution, will no longer be available at non-UK licensed online gambling sites when UK’s new Gambling Law becomes effective.

The failed gambling amendment was intended to give more teeth to the new gambling bill that makes a UK-license mandatory for all offshore-based online gambling facilities operating in UK’s territorial jurisdiction. The licensing directive likewise entails the payment of a 15 percent Point of Consumption Gaming Duty, imposed on all gross revenues derived from transactions with UK-based punters.

The proposed blocking of financial transactions is only one of the amendments turned down by the House of Lords, as the bill included among others, tougher restrictions on gambling advertisements. To which the UK government had already taken a proactive step of directing the Advertising Standards Authority to ascertain the adequacy of the present rules, as well as investigate whether such rules are “proportionately and consistently enforced.”

March 20, 2014 by : posted in Gambling News No Comments