The online casino sector is not only a huge part of the UK economy but also an industry in which proper regulation is paramount. This ensures that only well-run casinos that treat players fairly are able to operate and helps keep the public away from scam platforms.
iGaming regulations enforced by the UK Gambling Commission also extend to the payment providers which online casinos partner with (such as PayPal, Visa debit card and Apple Pay). This is in conjunction with the regulatory framework set out for these providers to follow when operating in the UK.
But what rules must online casino payment providers follow?
Hold Relevant Licences to Operate
Payment providers available at UK online casinos must adhere to regulations around licensing in the industry. This means that they must be FCA-approved to legally offer payment services/digital money transfers on casino platforms.
To obtain FCA approval, providers must adhere to the strict framework that this body sets out. This includes taking steps to prevent fraud and a commitment to the highest levels of platform security. The good news for UK players is that various FCA-approved options are available when it comes to online casino payment methods at regulated platforms.
Compliance with Anti-money Laundering Rules
The fight against money laundering is something the UK is heavily involved with. This means that industries like the online casino sector are expected to do their bit to tackle money laundering. This also applies to the payment providers that iGaming platforms carry. As a result, providers must comply with UK anti-money laundering rules to operate legally.
A good example of what this looks like in action is the need for payment providers to comply with Know Your Customer protocols. These protocols include obtaining verification of a user’s identity and address when they open an account. Payment providers in the UK must also follow the 2017 bill around Money Laundering, Terrorist Financing and Transfer of Funds Regulations to legally operate at online casinos nationwide.
Comply with the Ban on Credit Card Payments for iGaming
One unique aspect of UK rules and laws for online gambling is that credit cards have been categorically banned for depositing or withdrawing cash. As well as the onus being on casino platforms to not offer credit card facilities as a banking method, payment providers at casinos also need to do their bit.
This means that providers in the UK iGaming space must ensure that no credit card transactions are actioned for any gambling activities. Failure to do this could result in hefty fines for the provider in question if credit card payments for online casino gaming purposes slip through.
Safe and Clear Transactions
UK financial regulations for business are something most people have heard about and they extend to payment providers in sectors such as iGaming. It’s no surprise therefore to see that payment providers at UK online casinos must also adhere to rules around secure transactions for users.
They must, for example, make sure that all transactions are fully encrypted and safeguard the financial details of players. Payment providers in the UK must also stay in line with GDPR regulations around the protection of users’ personal data.
In addition to this, providers are also required by law to maintain transparent records of all transactions. This includes key metrics such as transaction fees applied and currency conversion rates. These rules are in place to ensure fair practices in the sector and look after the best interests of customers.
Reporting Obligations
UK payment providers at the country’s online casinos must deliver reports of any suspicious activity they notice on their platform. This is covered under the Suspicious Activity Reports framework and is designed to provide advance notice to UK authorities of potential fraud or money laundering.
Providers are also expected to send reports to the UK Gambling Commission if they experience any problems handling customer funds or processing payment requests. This enables the UKGC to keep an eye on things and step in when needed.
Payment Providers at UK Online Casinos: Rules and Regulations Vital
The above shows the most important rules that payment providers at UK online casinos are required to abide by. These regulations help to protect users and maintain robust safety standards in UK iGaming. It also helps to make the UK a fair, safe and responsible place to not only transfer money online but also game digitally.