press release

ONLINE gamblers could risk losing more than their stake if they use a credit card to fund their flutters, warns Moneynet.co.uk.

The personal finance comparison site reveals that the majority of credit card providers now treat online gambling transactions in the same way as a cash advance, which usually attracts a higher rate of interest than other purchases.

Furthermore, whilst most cards offer up to 56 days interest free on purchases there is no such leeway given on gambling transactions, meaning that punters will be incurring interest from day one.

“Unless gamblers are aware that these transactions are treated differently from normal everyday purchases they will be losing money hand over fist as the top rate of interest stacks up,” says Moneynet.co.uk chief executive Richard Brown.

Big name providers including HSBC, Nat West and First Direct all stand to make a profit from their customers’ gambling habits by loading the interest rate, whilst the Co-op and Nationwide both impose a cash withdrawal handling charge.

“An online gambler racking up £5,000 worth of debt on a credit card at a 22 per cent cash advance rate will repay interest of at least £1,100 a year unless they clear the debt,” he says.

“In other words, the gambler will need to win their stake back plus at least 22 per cent just to stand still. “

With the Chancellor’s decision to allow a raft of casinos to open up across the UK, the number of gamblers is undoubtedly set to rise as gaming becomes an increasingly mainstream leisure interest

“Whilst it’s fun for the majority it’s well known that gambling can become an addiction for the minority,” says Brown.

“Using a credit card to fund your wager poses an obvious risk and these additional charges just mean that odds are further stacked against the gambler.”

* BBA/BSA data, April 2007