Mallorca: Will credit cards be banned for gambling?

As it was announced a few days ago, the Parliament of the Balearic Islands, plans a ban on credit card payments for gambling. This means that in the future cash will be necessary to play at a gambling hall or casino in Mallorca. But for which reason will credit cards be banned for gambling?

Very soon there could be a credit card ban for gambling activities in the Balearic Islands. The holiday islands Mallorca, Menorca and Ibiza, which are popular with German holiday makers, belong to the Balearic Islands. Visitors to the islands could in the future therefore need cash once again, if they want to make a bet in a casino or a betting shop. Besides this, those responsible plan to introduce a Value Added Tax for gambling activities.

Gambling addicts could misuse credit card

The initiative was introduced by Parliamentarian Joana Aina Campomar from the party alliance Més per Mallorca. According to her arguments, players with a problematic gambling behaviour face a higher risk of continuing to play when they use a credit card. This in turn would increase the debt risk. For this reason, it is necessary that the state prevents the payment of gambling activities with any type of credit card. 

It is planned that credit card payments will be forbidden, both for the land-based gambling sector and also for the online gambling. Therefore no more credit card payments will be possible, both in Spanish online casinos, as well as in casinos, gambling halls and betting offices. This will also have direct consequences for holidaymakers. They would have for example to bring cash with them to be able to gamble, when they visit a gambling hall in Mallorca.

Many online gamblers use debit or credit cards for payment

As the Spanish Gambling Authority Directorate General for the Regulation of Gambling (DGOJ) had announced last year, 73 % of the gamblers use cards as a payment method for online gambling. This includes both debit and credit cards.

Besides this, the initiative is also requesting an introduction of a Value Added Tax for all gambling activities. Here the example was brought, that it is absurd, that there is a Value Added tax for foodstuffs, as an example, and there is not a Value Added Tax for gambling activities.

Conclusion

A few days ago, the Parliament of the Balearic Islands has passed a resolution, which demands that credit card payments are forbidden. This credit card ban will also be valid for all online gambling offers. Of course we are sceptical if the credit card ban for gambling will be effective enough to offer player protection. Till now however there has been no legally effective decision, so the motion can possibly even fail. 

Image Source: https://pixabay.com/de/photos/kathedrale-palma-mallorca-3763071/