The UKGC has recently clarified their new policy which bans deposits made with credit cards at UK online casinos. This ban hit many operators hard as this was an extremely popular form of deposit but there was slight confusion on what this meant for eWallet providers.
Here, we are going to look at this ban in more detail and discuss what eWallets can do to improve their VIP programs and keep their customers.
What Has Happened?
Back in January, the UKGC placed a ban on using credit cards to deposit at online casinos in the UK. When this happened, eWallet providers were unsure if this applied to deposits made through their accounts that had been initially deposited with credit cards.
This month, the UKGC has clarified this by pointing to the license condition 6.1.2. which shows that digital payment methods are included in this. Operators must block any eWallet providers who enable credit card deposits along with credit card deposits in their simplest form.
How Will This Impact Players Habits?
The credit card ban was not one that was immediately obvious to players but will have certainly had an impact by now. Credit cards are an extremely popular deposit method for many players in the UK, especially those who don’t have the funds immediately available to them in their bank accounts.
Now that players are only able to deposit with funds that they do have access to instead of credit, there could be a drop in deposits made from month to month. The UKGC put bans in place to reduce problem gambling and this one is set to have a big impact. While many players will simply switch to another method to deposit, some might not have that option.
The ban is relatively new and the clarification on eWallets is even more recent. Only time will tell if this will seriously impact players habits when gambling online in the UK.
What Can eWallets Do?
Any eWallet provider that accepts credit card deposits will not be accepted on gambling sites going forward. This gives eWallet providers a choice – will they remove credit card deposits from their accepted methods, or will they steer away from online gambling? The truth of the matter is that a large percentage of income for these eWallet providers come from the iGaming industry and so most are likely to remove the ability to deposit with credit cards.
With the removal of credit card deposits, eWallet providers will need to reassess their VIP programs. Many offer points with airmiles and payments with certain credit cards but this won’t be possible. Instead, they must look at creating points systems that will reward their customers for using alternative deposit methods.
Companies like Neteller already accept deposits from Bitcoin so there is an opportunity here for this to be rewarded. Bitcoin is already becoming an increasingly popular deposit method at online casinos and there is talk of this increasing even more due to the new ban. eWallets could adapt their VIP programs to reward players who deposit with Bitcoin and other cryptocurrencies.
The ban on credit card deposits at online casinos and sports betting sites has hit the industry hard. For eWallet companies, the latest clarification is a large blow. For now, we would suggest that eWallets restructure their VIP programs and offer players points for using alternative methods. They should also ban credit card deposits if they want to continue operating in the iGaming industry.