Betting using credit – why it should be generally avoided

April 2020 will be remembered by people around the globe as a month where the world changed for everybody.

Covid-19 came in and took control of the way people lived their lives and had us all stuck in our homes for weeks on end.

But it also was a month that changed the face of gambling here in the UK.

The Credit Card Gambling Ban

That is because on April 14, 2020 the Gambling Commission announced a ban on gambling businesses allowing consumers in Great Britain to use credit cards to gamble.
The ban followed the Commission’s review of online gambling and the Government’s Review of Gaming Machines and Social Responsibility Measures. A public consultation was carried out between August and November 2019.

In a statement on their website at the time the commission said: “24 million adults in Great Britain gamble, with 10.5 million of those gambling online. UK Finance estimates that 800,0001 consumers use credit cards to gamble.

“Separate research undertaken by the Commission shows that 22% of online gamblers using credit cards to gamble are classed as problem gamblers – with even more at some risk of harm.
“The ban, which will apply to all online and offline gambling products with the exception of non-remote lotteries, will provide a significant layer of additional protection to vulnerable people.” Most of big bookmakers in UK and Ireland on Scs have banned credit cards, with a further regulation coming to Ireland that will result in an outright ban.

Why Credit Cards Made Gambling More Dangerous

The ban covers all online gambling and most in-person betting, with exceptions for certain face-to-face lottery purchases.

Its goal was to create what the Commission called a “layer of friction” to slow reckless spending. It also cracked down on workarounds, like e-wallets or payment apps funded by credit, by prohibiting operators from accepting any gambling payments tied to borrowed funds, even indirectly.
The logic behind it is straightforward, when you gamble the money you use to do so should come from the funds you actually have and using credit cards to do so really does blur that line.
They let people spend beyond their means, often without immediate consequences. This detachment can be catastrophic. A bet placed on credit doesn’t hit the same as handing over cash as it feels abstract, almost unreal, until the bill arrives.

And when it does it hits hard. You can get high interest rates as well as cash advance fees, and penalties which all combined can turn a modest loss on a bet into a crushing debt that you then have to pay off.
For example a £200 wager might balloon with 20% interest or more and that will pile financial stress onto an already risky habit.

The Ban’s Impact and Ongoing Challenges

For many, the problem compounds. Problem gamblers often don’t stick to one credit card.
They might juggle multiple cards, dip into overdrafts, or even take out high-interest loans to keep betting. This scatters the debt, making it harder to track and easier to ignore, until it’s overwhelming. By the time help is sought, the damage often spills over into relationships, mental health, and livelihoods.
Families are strained, secrets pile up, and the psychological toll can be immense.
The ban aimed to curb these risks, and early signs suggest it’s had an impact.

Studies from the Gambling Commission show that nearly half of those who used credit cards for gambling switched to using their own funds after the ban. Only about 15% turned to other forms of borrowing, like personal loans or overdrafts. Fears that people would simply withdraw cash to dodge the rules didn’t fully materialize, bank data showed no significant spike in cash withdrawals post-ban.
In a release in November 2021, the commission said: “Support for the ban among consumers has been largely positive, qualitative data from consumers supports the conclusion that the ban helps people to gamble within their means and retain control…

Despite that the problem hasn’t disappeared as some gamblers find ways around the restrictions.
Some chase down high-interest payday loans or look to friends and family in informal borrowing and some even visit unregulated offshore gambling sites. Ones where credit cards are still accepted which remains an issue.

Other gamblers might exploit gaps in operator checks. They might use e-wallets linked to credit accounts.
The Commission is continuing to tighten these loopholes but any enforcement isn’t foolproof.
Beyond finances, the emotional cost of gambling with debt is profound.
Research ties it to anxiety, depression, and family breakdowns, especially when the debt is having to be paid.

In 2020 a House of Lords report estimated that there are around 340,000 problem gamblers in the UK, with up to two million more at risk of harm.
The ripple effects touch not just individuals but their partners, children and families.
In extreme cases, the despair can lead to suicide which is a tragedy campaigners like Gambling with Lives have worked tirelessly to highlight.

Charities and advocates, including GamCare, have praised the ban but insist more is needed. They call for stronger affordability checks to ensure people bet within their means, better financial education, and clearer warnings about gambling’s risks. The industry and government are starting to listen. Recent policy discussions, including the 2023 Gambling White Paper, signal a shift toward broader reforms, ones which are aiming to protect casual bettors before they spiral into harm.

For those who gamble, the advice is clear: stick to disposable income, set strict limits, and never borrow from others, whoever they are to place a bet.