UK regulator reaches payment blocking arrangement
Visa Europe, MasterCard and PayPal have voluntarily agreed to block transactions involving unlicensed operators
The UK Gambling Commission has reached a voluntary arrangement with a trio of major credit and financial services providers that will see the blocking of most credit card transactions involving unlicensed UK operators.
The agreement, which involves Visa Europe, MasterCard and PayPal, was revealed during yesterday’s report reading of the Gambling Bill in the House of Lords, a session which saw a vote on the statutory blocking of transactions narrowly defeated.
During the debate, Baroness Howe, a supporter of transaction blocking for illegal sites, revealed that the Lords had been in receipt of a letter confirming the voluntary agreement.
According to the Baroness, the letter stated “the Gambling Commission has reached agreement with a number of major payment systems organisations to work together to block financial transactions with unlicensed operators”.
Later in the debate Baroness Jolly revealed the identities of the three participating companies while eGaming Review has also received confirmation from the regulator.
Although the voluntary agreement will be viewed as a major breakthrough for those in favour of payment blocking, Baroness Howe added that the issue itself “cannot be addressed by a voluntary agreement between just these three providers”.
DLA Piper gaming lawyer Ashley Averill said that the move will mean that consumers may have transactions blocked when attempting to transact with unlicensed operators.
“It is understood that any transactions with Visa, MasterCard or PayPal from unlicensed sites will amount to a breach of their terms and conditions which require that all transactions much be legal in all applicable jurisdictions,” Averill said.
The voluntary agreement will become effective once the UK’s new point of consumption regulatory framework comes into force later this year.