Since 14 April 2020, gambling using credit cards has been banned in the UK, but this guide has been preserved for historical reference. While you may technically still be able to gamble with your credit card by using cash advances, this is highly inadvisable and may lead to serious financial stress.
Credit cards are convenient, but if you wanted to place a bet on the Grand National, pay for scratch cards or lotto tickets, or play poker online, they suddenly became quite expensive. Most credit card providers categorized gambling transactions differently from everyday purchases and charged high rates (up to 34.95% p.a.) and fees for them. Others might not have allowed you to use your card to gamble at all.
First and foremost, it should be noted that gambling with the bank’s money is a pretty terrible idea, and one which could lead to significant financial difficulties.
How card issuers classified gambling transactions
When gambling with a credit card was allowed, the charge will typically be categorised as a cash advance. This is because gambling charges are often “cash equivalents” or “cash substitutes” (i.e. where you spend money to get another form of money).
Although it can vary from card to card, cash advances are almost always bad news. There are four main reasons for this:
They attract a fee. Card issuers typically charged a percentage-based fee with a strict minimum, for example, “3% of the transaction, minimum £3”.
Interest is usually charged from the day the funds leave your account. If you clear your balance in full each month, almost all credit cards will give you a grace period of up to around 55 days 0% interest on purchases. However, cash advances are usually exempt from this significant benefit. They’re also usually exempt from any longer-term introductory 0% purchase offers.
They are usually exempt from any rewards. As you might expect, you can’t earn cashback on cash withdrawals, for example. The same goes for rewards points and air miles. Additionally, if you need to hit a minimum spend to enjoy a particular benefit, cash advances may not count towards this.
They are usually visible on your credit file. For mortgages and larger loans, lenders may conduct a thorough assessment of your credit report and your financial accounts before making a decision on your application. Credit card cash withdrawals could be interpreted as irresponsible financial behaviour.
Using a credit card at gambling establishments
If you were at a gambling establishment, using your credit card for non-gambling activities – such as buying drinks or meals – could also have attracted the cash advance fee and interest rate. When this happened, it was because the establishment’s merchant category code was preset to process gambling transactions. So, when the charge went through to your credit card company, it most likely was processed as a gambling transaction or cash advance.
Example: How much did a gambling transaction cost?
Say you decided to use your credit card to place a total of £200 worth of bets on a sporting event. On a credit card with a 3% (minimum £3) cash advance fee and a cash advance rate of 21.9% p.a., here’s what could potentially happen:
If you pay the minimum amount each month. If your card balance was £0 before the gambling transaction, and this remains the only transaction on the card, you could pay around £206 in interest in total over 8 years and 5 months.
If you pay the full amount after 1 month. Assuming again that this is the only transaction on your card, you would have to pay around £3.65 in interest plus £6 for the cash advance fee.
The bottom line
Gambling with your credit card is no longer allowed. However, this guide has been preserved to show you the fees that a gambling transaction could incur on your credit card,
Alternatively, you could research and explore workaround e-wallet solutions like PayPal, although PayPal has its own stringent rules around gambling transactions and prohibits some forms altogether. Whatever you decide, always remember to gamble responsibly.
Finder survey: Do you understand all the features that credit cards can have?
Response
Yorkshire and the Humber
West Midlands
Wales
South West
South East
Scotland
Northern Ireland
North West
North East
Greater London
East of England
East Midlands
No
52.94%
40.87%
34.85%
52.17%
41.72%
36.84%
54.17%
46.28%
33.33%
32.41%
32.18%
45.45%
Yes
47.06%
59.13%
65.15%
47.83%
58.28%
63.16%
45.83%
53.72%
66.67%
67.59%
67.82%
54.55%
Source: Finder survey by Censuswide of 1032 Brits, December 2023
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Chris Lilly is Head of publishing at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more. See full bio
Chris's expertise
Chris has written 567 Finder guides across topics including:
Izzy Thomas is a senior associate publisher at Finder specialising in credit-based products including credit cards, business loans and personal loans. Izzy has a Masters in Publishing and a Bachelor of Arts in International Business Management. See full bio
Izzy's expertise
Izzy has written 21 Finder guides across topics including:
Get all the details on how we rate the credit cards we review. We look at costs, fees, features and how well a card performs compared to the rest of the market.
Buy now and pay interest later with a 0% purchase credit card. Compare current offers with 0% p.a. on purchases.
Advertiser disclosure
Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
