- Legislation in Illinois would ban the use of credit cards for lottery purchases
- The bill would also ban casino ATMs from facilitating cash advances on credit cards
A recently introduced bill in Illinois seeks to put several additional regulatory safeguards on the state gaming industry.
House Bill 4149, introduced by Illinois Reps. Curtis Tarver (D-Chicago) and Marti Deuter (D-Elmhurst), would prohibit the sale of lottery tickets via credit card. Currently, the Illinois Lottery allows its retailers to accept game sales with credit cards. The lottery’s website additionally allows customers to fund their online accounts with credit card deposits.
“No person shall sell a lottery ticket or share on a credit basis,” the bill’s proposed amendment to the Illinois Lottery Law reads.
The state lottery law already effectively prohibits courier services like Jackpocket and Jackpot from operating within the Land of Lincoln. The law states that “no person shall sell a ticket or share at a price greater than that fixed by rule or regulation.”
“No person other than a licensed lottery sales agent or distributor shall sell or resell lottery tickets or shares. No person shall charge a fee to redeem a winning ticket or share,” the Illinois Lottery Law maintains.
Casino Credit Cards
Illinois already bans its licensed online sportsbooks from allowing bettors to fund their wagering accounts on credit. The Illinois Gaming Board (IGB) adopted the online sportsbook credit card ban in April.
“There is a growing body of recent research showing that restrictions on credit usage to fund wagering accounts mitigate the harms of compulsive gambling. Problem gamblers are particularly at risk, and studies have shown an often-problematic willingness for compulsive gamblers to use credit cards to place bets,” IGB Administrator Marcus Fruchter said at the time.
Now, Tarver and Deuter want to ensure that gamblers at one of the 17 physical casino floors across the state cannot access money to gamble on credit. HB4149 would prohibit casino ATMs from allowing a person to withdraw money through a credit card transaction.
“An automated teller machine located within a casino shall not be able to perform cash advances on credit cards,” the bill reads. “A person shall not use a credit card to participate in a gambling game.”
Don’t Gamble With Credit Cards
Credit card cash advances come with high fees, typically 3% to 5% of the total amount withdrawn, because the card issuer considers the transaction to be a short-term cash loan.
A cash advance is a short-term cash loan from your credit card issuer. It’s a convenient way to access cash without having to apply for new credit. However, the costs make it an expensive way to get money in a pinch,” Experian reports.
For credit card cash advances made inside a casino, the fees can be even higher, as the banks rightfully acknowledge that the customer is likely to gamble the money and therefore be unable to pay back the cash loan.
The Consumer Financial Protection Bureau (CFPB) says credit cards charge, on average, a 10% fee on credit card cash advances made inside casinos or online for iGaming and sports betting accounts. In 2022, the CFPB said major credit card issuers charged consumers $717 million in fees on $3.6 billion in credit card cash advances, representing an average fee of around $1 for every $19 spent.
Gambling on credit also poses problem gambling risks and risks to one’s credit, the CFPB explains.
The post Illinois Seeks to Ban Credit Cards Inside Casinos and for Lottery Purchases appeared first on Casino.org.
