In Pennsylvania, Senator Wayne Fontana has a goal of ensuring that online gambling doesn’t lead to crippling credit card balances. He announced his intentions of creating a new bill to ban credit card transactions for online casinos in March this year.
What effect will the new bill have on online casinos?
Current state law allows online players to use a credit card to fund their online casino accounts. The new Senate Bill 1159 would stop credit card payments on any form of online gambling, including sports wagering and iLottery games.
If the legislature approves the bill and Governor Josh Shapiro signs it, this could have a significant effect on Pennsylvania online casinos. It’s not good news for sportsbooks or the Pennsylvania Lottery. Banning credit cards could reduce player deposits. When players are unable to use an easy payment method like a credit card, they may leave legal markets and go to illegal ones where they don’t have any protection.
Credit card debt and problem gambling
Senator Fontana believes that the convenience of being able to gamble from home at any time increases the number of individuals who develop a gambling disorder. He sees the bill as helping to avert a potential crisis of crippling credit card debt for addicted gamblers.
As far as reducing player deposits, Fontana argues that operators won’t be affected by the money they lose as casinos set and break revenue records monthly. The new bill will help to prevent gamblers from playing beyond their means. It will place a potential roadblock in the way of those addicted to gambling.
Studies do show that easy access to money when using credit cards can mean that gambling problems continue or even worsen. Using credit cards to gamble can result in more debt, destroy relationships, and cause mental health problems.
Unintentional negative consequences
On the other hand, there is concern that the bill could have some unintentional negative consequences. Banning credit cards could drive customers to illegal offshore gambling markets, which could offer enticing incentives for making credit card transactions on their sites.
Additionally, numerous players currently use cryptocurrencies in casinos for their anonymity. Banning credit card transactions could simply result in them using other more anonymous payment methods, potentially increasing tax evasion and money laundering.
Technology casinos are using to reduce problem gambling
Gambling operators may lose their licenses or have to pay fines if they don’t monitor problem gambling and act when necessary. They need to have responsible, healthy gamblers to sustain their businesses. With the latest tech developments, there are many measures online casinos can take other than banning credit cards to reduce problem gambling. Hidden cameras and facial recognition technology can track betting behavior to intervene before gambling reaches risky levels.
With AI technology and machine learning, it is possible to learn people’s playing styles, how much they like to bet, what games they play, and how long they play. If players start showing signs of what’s seen as problem gambling, such as making larger bets or chasing losses, the AI can tell an online casino to check on the player. In the future, there is likely to be more use of data analysis and tech-based strategies that can help address gambling addiction without the need for excessive regulation.
