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Navigating the credit card gambling ban for lotteries

How to manage your lottery with the UK credit card gambling ban

The Gambling Commission has cracked down on the use of credit cards in gambling that will come into effect on 14 April.

With just over a month to go, this includes society lotteries – so those set up to raise money for good causes – and means that credit cards will no longer be accepted for online payments from April.

New and existing payers, and subscriptions (so recurring credit card payments) and if the original payment was made remotely are all included.

The ban will apply to all remote lotteries. Practically, this means if you run a society lottery you will no longer be able to use credit cards for online payments, either via a website, app, over the phone or email.

This also includes credit card payments through e-wallets such as PayPal. While e-wallets will be able to put in measures to prevent credit card payments for gambling, if you do use one, you must be satisfied that, as the organisation operating the lottery, the provider will prevent gambling payments by credit card by the cut off date.

However where payments are taken face-to-face or sent by post, these can still continue.

But for those who run lotteries online, what can you do to mitigate the risk of lost income?

How to prevent a reduction to your lottery income

  1. Offer Direct Debit as a payment option – the benefits being that:
    1. No need to chase for new card details once the card expires
    2. A regular, reliable income that helps to forecast your cashflow
    3. Payments continue, even if the player changes their bank account
  1. Offer Debit card as an option for recurring payments:
    1. Money is withdrawn directly from the bank, so if there’s no funds, they can’t play
    2. If you take a lump sum for your lottery plays from credit cards, you can do the same for debit cards.

To talk to us about how you can manage your recurring lottery payments, get in touch today.