Why you should avoid credit card debt to fund your online casino gaming. Plus, find solutions for responsible credit card casino deposits. (Image by Roman Ivanyshyn from Pixabay)
This article covers the main reasons why you should never use your credit card to fund online gambling. More to the point, you should never get into debt so you can gamble.
Credit cards are one of the worst forms of payment you can use because you are not playing with your money. They have been the cause of many problem gamblers getting into financial difficulty.
For this reason, many global licensing authorities have banned online and even land-based casinos from accepting credit card payments. The UKGC banned credit cards for online casino deposits on 14 April 2020, and the Ontario iGaming market followed suit when it opened in 2022.
One of the crucial points we always emphasise is that online casino games are strategically designed to make a profit. Knowing that the odds are always in the casino’s favour is important.
Below, I will explain the best-case and worst-case scenarios of using credit cards to fund online gambling.
If you are looking for sound advice on how to manage you casino bankroll outside of playing games and maximising your profits, take a look at our guide covering playing at online casinos using domestic currency versus foreign currency.
Casinos Are Not a Get-Rich-Quick Scheme
Casinos exist because their games are designed to generate profit. They operate on the principle of luck, with a big jackpot win being the result of numerous players contributing and a fortunate winner emerging at the end.
Recognising that casinos are not a ‘get-rich-quick’ scheme is important. While there is a possibility of significant winnings in certain games, there is also a risk you could lose if you bet too heavily with no strategy or bankroll management in place.
The problem funding with your casino account with credit card debt is if you lose, you are paying interest on that debt. In short, not only are the games weighed in favour of the casino, but the interest is also reducing your RTP outside of traditional game play.
Learn How Credit Card Debt Defeats the Object of RTPs
If you fund your casino bankroll with credit card debt and lose, you stand the risk of being unable to pay back the debt. This leads to more debt as the credit company puts on high interest rates, defeating the object of bankroll management and RTPs.
Some people believe they can fund their casino account using credit card debt and win to fund future gambling activities further. This tactic is rarely successful with casino games unless you are a pro poker player, of course!
For example, if your credit card charges a 24% APR and you lose $100.00 playing casino games using your credit card, you now have to pay $24.00 a year in interest. It gets worse, and the more debt you run up, the more interest payments are.
Let’s look at some more scenarios:
| Credit Card APR | Interest Paid and RTP Lost |
|---|---|
| 12% APR Credit Card Debt | Your interest on your losses is 1% per month, so you lose 1% RTP on any casino games you play. |
| 24% APR Credit Card Debt | Your interest on your losses is 2% per month, so you lose 2% RTP on any casino games you play. |
| 36% APR Credit Card Debt | Your interest on your losses is 3% per month, so you lose 3% RTP on any casino games you play. |
The longer you leave the debt, the more interest you play. In theory this means a higher risk to reward because the RTP of the game you played months ago is getting lower even though you are not spinning the reels or placing any bets.
What are the Alternatives to Credit Cards?
There are no alternatives if we are talking about getting into debt to fund your online casino gaming. The bottom line is that you should not get into debt so you can gamble.
However, there are alternative ways you can use your credit card and alternative payment methods that all require funds to be available. There in fact some excellent benefits that come with using credit cards, and explained in our credit card casino payments guide, but these benefits are only viable if you can avoid interest payments.
| Card Type | Solution |
|---|---|
| Pay Off Your Credit Card Before Interest Kick-In | You would want to use your credit card to top up your online casino balance, which we cover in our credit card deposits article. Credit cards can be an excellent payment and withdrawal option as long as you pay back the money used before interest kicks in. |
| Pre-Paid Cards | Although most banks or companies providing pre-paid credit cards call them credit cards, I see them as glorified debit cards. Either way, pre-paid cards are another excellent deposit and withdrawal option. |
Funding Your Cards Responsibly: In both the examples above, you can set up a direct debit from your bank account. For pre-paid cards, you can send your weekly or monthly budget to top up the card, while for credit cards, you can instruct your bank to pay off the balance weekly or monthly.
How Can You Get Help If You Get Into Debt Gambling Using Credit Cards
The hard truth is most governments and lenders have little sympathy for people who get into debt through gambling. However, in many cases the debt is caused by an illness, which is gambling addiction.
The most important step from this point onward is to stop gambling and seek help.
If the above statements in this section apply to you, then we have a page dedicated to helping you find out where you can get gambling debt and gambling addiction advice. If this sounds like you, then please take a look at our help for problem gambling page here.
Rounding Up Why You Should Avoid Credit Card Debt to Fund Your Gambling
While online casinos can pay out big wins, the reality is that all games are there to make a profit. Consequently, using credit cards to fund online gambling is risky and could lead to financial difficulties due to having to pay high interest rates on losses.
In turn, the interest paid will negatively impact your bankroll and reduce casino game RTP, thus decreasing your chances of long-term success gambling online. Proper bankroll management and success as a casino player is all about minimising losses through in-game and external-game management.
The best approach is to use only money you can afford to lose, so you avoid the trap of credit card debt altogether. For responsible gaming, consider alternative payment methods or strategies that do not involve incurring high-interest debt.
Finally, if you have read this article and it is too late, please visit organisations like GambleAware. Alternatively, take a look at our responsible gambling page via the anchor provided in the section above for a list of gambling help entities that help people with debt and problem gambling.
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