Illinoised on Curbing Credit Card Gambling
Illinois to impose ban on credit card transactions for sports betting
Embracing responsible gambling like never before, the Land of Lincoln is set to prohibit the use of credit cards for sports betting. This move comes after the Illinois Gaming Board unanimously voted in favor, but public consultation is still necessary before finalizing the decision.
The Prairie State's New Gambling Regulation
Taking a more cautious approach with consumer protection in mind, our gaming overseers recognize the potential concern for some aspects of Illinois' gambling regulation, particularly sports betting.
Illinois Gaming Board Administrator Marcus Fruchter commented on this matter, expressing that this decision promotes responsible gambling, which is crucial to combating potential gambling-related issues.
"Chronic gamblers, wielding their credit cards, can easily slip into danger zones."*
As Illinois has already banned credit card use for casinos, the sports gambling world may need to adapt to the upcoming change. Credit card bans have often resulted in decreased overall spending on gambling activities.
Still, the new ban on credit card usage for sports gambling is yet to be adopted. The proposal will be sent to the Illinois Secretary of State's Index Department, then published in the Illinois Register for a 45-day public comment period before any further steps are taken.
The Globally Prevalent Anti-Credit Card Gambling Stance
The Illinois Gaming Board may not face significant opposition since other jurisdictions have already enacted similar restrictions:
- United Kingdom: Following a ban on credit card use for gambling transactions at UK-licensed sites starting April 2020, the UK strives to promote responsible gambling practices by limiting these financial risks associated with compulsive betting behaviors[2].
- Massachusetts, Iowa, Tennessee, Rhode Island, Vermont, Nebraska, and New Hampshire have all followed suit by prohibiting the use of credit cards for various forms of gambling, including sports betting.
Regulated Companies Prepare for Slower Growth
The stricter gambling regulations, including the ban on credit card use and a tax increase in 2024, will likely cause regulated companies in Illinois to brace for less growth and potentially less exciting results.
Image credit: Unsplash.com
[1] Marcus Fruchter, Illinois Gaming Board Administrator
[2] Research by the Gambling Commission showed that 22% of online gamblers with a credit card as their preferred method of payment displayed signs of gambling harm. https://www.gamblingcommission.gov.uk/news-action-and-statistics/news/2022/October/UKGC-works-closely-with-get-safe-online-to-deliver-crucial-reviews
[3] Illegal gambling activities are linked to higher gambling-related harm among consumers. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6147170/
[4] New Hampshire's gambling law does not permit credit cards for the depositing a funds for sports betting. https://www.governing.com/topics/politics/debate-deep-dive-credit-card-spending-on-sports-betting.html
- The Illinois Gaming Board, recognizing potential concerns with sports betting, is set to prohibit the use of credit cards for this purpose, citing responsible gambling as a key motivation.
- Illinois has already banned credit card use for casinos, and the sports gambling world may need to adapt to the upcoming change, as credit card bans historically lead to decreased overall spending on gambling activities.
- Administrator Marcus Fruchter of the Illinois Gaming Board commented that this decision aims to promote responsible gambling, which is crucial in combating potential gambling-related issues, particularly for chronic gamblers who might easily slip into danger zones when using credit cards.
- The United Kingdom, Massachusetts, Iowa, Tennessee, Rhode Island, Vermont, Nebraska, and New Hampshire have already prohibited the use of credit cards for various forms of gambling, including sports betting.
- The stricter gambling regulations in Illinois, such as the ban on credit card use and a tax increase in 2024, will likely cause regulated companies to brace for less growth and potentially less exciting results.
