What it does: Prohibits operators from accepting deposits funded by credit cards or other extensions of credit, limiting funding to non-credit methods and requiring auditable payment-rail controls.
Sources
$10,000 per prohibited credit-funded transaction is a reasonable baseline;
consider escalating penalties (and license consequences) for systemic failures, since the
underlying harm is debt-financed loss-chasing.
60–90 days is a common operational window for payment rail updates,
merchant configuration, and compliance testing.
14 April 2020.
UK Gambling Commission announcement.
CASPR is available for legal and technical support adapting this bill to specific state contexts.
Download as Word .docxA BILL FOR AN ACT
RELATING TO MOBILE SPORTS WAGERING; PROHIBITING THE ACCEPTANCE OF CREDIT CARD
DEPOSITS AND OTHER CREDIT-FUNDED TRANSACTIONS; REQUIRING COMPLIANCE CONTROLS;
PROVIDING FOR ENFORCEMENT AND PENALTIES; AND PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF [STATE]:
SECTION 1. SHORT TITLE.
This Act may be cited as the "Sports Wagering Credit Funding Prohibition Act".
SECTION 2. DEFINITIONS.
In this Act:
(1) "Commission" means the [STATE GAMING COMMISSION] or successor agency.
(2) "Operator" means a person licensed or otherwise authorized under [STATE LAW] to
conduct mobile sports wagering in this State.
(3) "Credit card" means a card or account that provides access to a revolving credit line,
including charge cards, and includes any digital wallet transaction that is funded by a
credit card or other credit line.
(4) "Credit-funded transaction" means any deposit, transfer, or funding transaction in which
the source of funds is a credit card, a cash-advance feature, a line of credit, or any
extension of credit.
(5) "Deposit" means a transfer of value into a sports-wagering account for purposes of wagering.
SECTION 3. PROHIBITION ON CREDIT-FUNDED DEPOSITS.
(a) Prohibition. An Operator shall not accept a Credit-funded transaction as a Deposit
into a sports-wagering account.
(b) No extension of credit. An Operator shall not extend credit to a patron for purposes of
wagering, including by "buy now, pay later", overdraft-style advances, margin, or similar
arrangements.
SECTION 4. PERMITTED FUNDING METHODS.
An Operator may accept Deposits only from:
(1) a verified depository account (ACH, wire, or similar bank transfer);
(2) a debit card transaction that the Operator reasonably verifies is not a Credit-funded
transaction; or
(3) other non-credit methods expressly approved by the Commission by rule.
SECTION 5. COMPLIANCE CONTROLS.
(a) Controls required. Each Operator shall implement technical and operational controls
designed to reasonably prevent acceptance of Credit-funded transactions, including
controls to detect credit funding through digital wallets and similar intermediaries.
(b) Payment coding. An Operator shall use accurate merchant category codes and descriptors
for gambling/sports wagering transactions to support issuer controls and consumer protections.
(c) Disclosures. An Operator shall disclose clearly, at the point of deposit, that credit card
deposits are prohibited and that attempts to fund deposits with credit may be rejected.
SECTION 6. ENFORCEMENT; PENALTIES; RULEMAKING.
(a) A violation of this Act or a rule adopted under this Act constitutes grounds for license
discipline.
(b) The Commission may impose a civil penalty of up to [$10,000] per violation. Each prohibited
Deposit accepted is a separate violation.
(c) The Commission shall adopt rules to implement this Act, including rules defining:
(1) minimum compliance controls;
(2) acceptable verification steps for debit transactions; and
(3) audit and recordkeeping requirements.
SECTION 7. SEVERABILITY.
If any provision of this Act or its application is held invalid, the invalidity does not affect
other provisions or applications of this Act that can be given effect without the invalid
provision or application.
SECTION 8. EFFECTIVE DATE.
This Act takes effect on [DATE].