Illinois restricts usage of credit cards for sports betting
Illinois Set to Tighten Grip on Sports Gambling with Credit Card Ban
Moving forward, Illinois residents may find their credit cards less accessible when it comes to sports gambling, following a bold move by the Illinois Gaming Board last week. The proposed ban has been welcomed by responsible gambling advocates.
Illinois' Expansion of Credit Card Restrictions in Gambling
The Illinois Gaming Board, overseeing gaming activities within the state, has taken a decisive step in addressing potential risks associated with credit card usage in sports gambling. The Board believes that enhancing consumer protection is necessary to mitigate harms related to problem gamblers who may overindulge using credit cards for bets.
According to Illinois Gaming Board Administrator Marcus Fruchter, problem gamblers are particularly susceptible, and studies have shown a tendency for compulsive gamblers to resort to credit cards for placements.
Curbing Potential Harm through Credit Card Ban
Prior to the proposed ban, all states with similar legislation allowed credit card usage in gambling activities. However, the Board agrees that the time has come for a more responsible approach. Credit card bans are generally associated with reduced spending on gambling activities.
Despite receiving the Board's unanimous support, the proposal is yet to take effect. It will be presented to the Illinois Secretary of State's Index Department before being submitted to the Illinois Register for a 45-day public feedback period.
A Global Perspective: Credit Card Regulations in Gambling
Illinois' decision to ban credit cards in sports gambling reflects a broader trend around the world. Countries such as Brazil, the United Kingdom, and Australia have taken firm stances against credit card use in gambling, focusing on consumer protection and preventing excessive gambling-related harm.
In Brazil, Ordinance No. 615/2024 prohibits gambling operators from accepting credit cards or postpaid payment methods. Only specific payment methods like Pix and bank transfers are approved. Additional safeguards like biometric verification and CPF monitoring are in place to confirm a bettor's identity.
The UK enforced a nationwide credit card ban for gambling in April 2020, leaving debit cards as the primary card-based payment method. Affordability checks are strictly enforced alongside this ban by the UK Gambling Commission.
In Australia, the Interactive Gambling Act 2001 prohibits credit card use for online gambling (except some lottery products) and in-play sports betting (except telephone betting). Debit cards and specific payment providers like POLi are still permitted. Individual states are considering broader credit card bans even for physical gambling venues.
| Jurisdiction | Credit Cards | Key Legislation | Additional Measures ||--------------|--------------|-----------------|---------------------|| Brazil | Prohibited [3] | Ordinance 615/2024 | Biometric verification [3] || UK | Banned (2020) | Gambling Act 2005 | Affordability checks || Australia | Mostly prohibited | Interactive Gambling Act | State-level proposals |
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The Illinois Gaming Board, responsible for overseeing gaming activities within the state, has agreed to tighten regulations on sports gambling by banning the use of credit cards, with the intention of promoting responsible gambling and consumer protection. This move mirrors similar initiatives taken by countries like Brazil, the United Kingdom, and Australia, which have each implemented credit card bans or restrictions in their gambling-related businesses to mitigate excessive gambling-related harm.
In the Brazilian case, Ordinance No. 615/2024 prohibits gambling operators from accepting credit cards or postpaid payment methods. As an alternative, specific payment methods like Pix and bank transfers are approved, with additional safeguards like biometric verification and CPF monitoring in place to confirm a bettor's identity.
The UK enforced a nationwide credit card ban for gambling in April 2020, leaving debit cards as the primary card-based payment method. Affordability checks are strictly enforced alongside this ban by the UK Gambling Commission.
In Australia, the Interactive Gambling Act 2001 prohibits credit card use for online gambling (except some lottery products) and in-play sports betting (except telephone betting). Debit cards and specific payment providers like POLi are still permitted. Individual states are considering broader credit card bans even for physical gambling venues.
These regulations are part of a global trend aimed at fostering responsible gambling habits and minimizing harms associated with problem gambling. The Illinois casino-and-gambling industry will need to adapt to these changes, which are set to complete the regulation of transaction methods in the industry.
