PayPal, which is one of the most popular payment service providers in the world, has introduced blocking software on its platform. This blocking software supplied by Gamban will cover all sorts of iGaming transactions including games of chance or skill that feature an entry fee or a prize for participants. Casino games like slots, as well as table games, whether virtual or retail, have also been covered by the blocking software.
In addition to all these verticals, the software could also apply to sports wagering, horse, as well as greyhound racing. Person-to-person wagers and lottery tickets are additional betting transactions that could be impacted by the new software. With the blocking software, PayPal customers will have the power to prohibit transactions to gambling-related activities, such as online websites that offer betting tips, intermediaries who place wagers, or organized forums that make person-to-person wagers a reality.
In 2019, PayPal reviewed its controls and payment regulations after several complaints were lodged that the platform was being used to enable problem gambling in many parts of the world. Gamban, which is one of the most well-known gambling platforms to date, offers PayPal customers the choice to block any gambling-related transactions, which is exactly what might stop problem gamblers from losing control.
PayPal is used all over the world and it processes more than 3 billion transactions every year. While most people utilize PayPal for online shopping and other purchases, some people also use it frequently to fund their online gambling. Many punters prefer using PayPal because it is easy to use, safe, fast, and is easily accessible from any corner of the globe. Customers can also add funds from their cards or bank accounts to easily complete their payments.
What we cover
Why Would PayPal Add Such Blocking Software?
In the past, PayPal has been accused of allowing problem gamblers to spend excessively. It is said that problem gamblers and those vulnerable to gambling addictions often rely on PayPal to circumvent the spending limits that are imposed by most banks. At the time, PayPal was accused of allowing problem gamblers to overspend as a result of a loophole in their debiting system.
As a result, authorities, especially in the UK, called on the platform to be more responsible and actively involved in stopping its customers from racking up massive debts that would eventually lead them to declare bankruptcy. In the UK, the Department for Digital, Culture, Media, and Sport had even considered adding payment providers like PayPal to its review on credit card betting.
On hearing these complaints by authorities, PayPal has been working hard over the last few years to review controls and tighten measures around online payments, especially as they relate to gambling. PayPal has worked hard to identify problem behavior and created measures such as blocking software to prevent punters from going into debt through their platform.
Problem Gambling Extreme in the UK
According to many experts, problem gambling has always been a hidden epidemic in the UK. So much so that in 2019, the government finally took action on credit card companies by banning the use of cards in any betting activity. Bookmakers and major retail banks were heavily involved in the amendment process alongside the industry regulator, the UKGC.
In 2020, the UK government finally took measures to ban betting on credit cards. Years of research have demonstrated that at least 22% of online punters that use credit cards suffer from problem gambling or some type of gambling harm. Last year, the commission also announced additional changes to licensing conditions that now force all operators to take part in the GAMSTOP self-exclusion scheme.
The exclusion scheme, which was developed for the online gambling sector, now allows punters to self-exclude from online operators with just one request, rather than forcing the punters to make individual requests to each operator. The UK alone boasts more than 200 online gambling operators, so the self-exclusion scheme has made it so much easier for punters to opt-out when the need arises.
In the last 2 years, the UKGC also introduced and strengthened new regulations relating to age verification. This also includes tightening additional online protections and restrictions for play for free games in addition to tightening the law surrounding betting advertising. Last year, the UKGC also introduced laws that prevent betting companies from advertising on players’ football kits during live games.
What Has the Us Done to Limit Problem Gambling?
The legalization of sports betting in the US in 2018 has set off record wagers in various states. Although this has created a new revenue source for many states, it has also created a generation in which many, especially younger individuals, are at risk of developing unhealthy relationships with gambling in general.
Sports betting in the US was always tightly controlled and treated as taboo by many sporting entities including all the top and most popular sports leagues. After the Supreme Court legalized sports betting in 2018, sports betting has been legalized in at least 30 states, as well as the District of Colombia. This implies that more than 180 million individual distributed throughout the country are now free to place wagers not just on sports but esports and horse races as well.
The gambling industry has been booming and thriving since PASPA was repealed. Across media, betting ads and gambling-related content have become ubiquitous, while sports teams and betting operators are also forging new partnerships and collaborations in an effort to take advantage of the growing market. According to reports by American Gaming Association, people wagered at least $54 billion through legal sportsbooks in 2021.
As the states continue to go all-in on the betting industry, problem gambling experts fear that the rapid growth may be creating a gambling epidemic. As you’ve read above, problem gambling has been a major issue in the UK and if the US wants to prevent the same from happening to their market, the government must do everything possible to put the necessary measures and protections in place.
