Be careful joining Lottoland with a Credit Card

GingerBob_3

Out of interest, why do CC companies treat transactions with gambling organisations as cash advances?

blenz101

GingerBob wrote: »

Out of interest, why do CC companies treat transactions with gambling organisations as cash advances?

Because they are just that, you can make a deposit into an online account and subsequently withdrawal the money as cash in any form you like even if you haven't bet.

It's also presumably undesirable activity for the card issuer as there is zero security on the debt, high risk of fraud and one suspects potential default.

It is clearly also not in the betting sites interests to pay out via card as it incurs them charges - most allow faster pay straight back to your bank.

grumbler

blenz101 wrote: »

Because they are just that, you can make a deposit into an online account and subsequently withdrawal the money as cash in any form you like even if you haven't bet.

Normally you can withdraw to another source only if your net deposits from this card are zero, i.e. you have to withdraw all deposits back first and have to win to withdraw cash. Also, many bookies charge for withdrawals if the deposit wasn't wagered.

And what you say doesn't explain why CC companies care. The only explanation I can imagine is that they get very small fee from companies for gambling deposits - much smaller than for normal purchases.

It's also presumably undesirable activity for the card issuer as there is zero security on the debt, high risk of fraud and one suspects potential default.

All CC debts are unsecured.
Fraud, indeed, can be a reason because gambling is one of the most common ways of laundering stolen money.

Ben8282

GingerBob wrote: »

Out of interest, why do CC companies treat transactions with gambling organisations as cash advances?

Because it is a very high risk activity. Borrowing money to gamble. Would you lend a friend money for the purpose of gambling?


I am in general agreement that it would be good practice for there to be some sort of information on the website to the effect that credit card payments may be treated as cash advances.

GingerBob_3

Ben8282 wrote: »

Because it is a very high risk activity. Borrowing money to gamble. Would you lend a friend money for the purpose of gambling?


I am in general agreement that it would be good practice for there to be some sort of information on the website to the effect that credit card payments may be treated as cash advances.

I'm not convinced. I think it's more to do with the nanny state attitude that permeates society. 'Gambling is bad so let's cane those who take part in it'. The CC companies have probably been lent on by the regulators to do this.

Sharon87

GingerBob wrote: »

Out of interest, why do CC companies treat transactions with gambling organisations as cash advances?

As explained you can withdraw the money you put into your gambling account. It's the same as why you can't get cashback in the supermarket when using a credit card. If you want cash from a credit card they want to charge you interest and fees.

Jen58

Thought I'd have a couple of lines on Euromillions as received an offer of £2 off. So, registered credit card (no mention of a charge) and looked forward to draw. No luck! Then, to make matters worse I have just checked my statement and found a £3 gambling charge! My £2 bet has cost me £5! I will complain to Lottoland and my card provider.🙁

[Deleted User]

SnowTiger wrote: »

It worked for me. I have a free ticket sat in the My tickets area.

There was no free bet in the My Tickets area. Don't you think I looked!

mbyrne01

Folks,

I complained about this additional charge and Capital One reversed it. My logic was simple that if I bought a lottery ticket from my local newsagent, I would not have been charged. They were very good about it all, but it will only work once. As it goes, my logic was false as I'll explain.

It's important to realise how Lottoland works. They do NOT buy tickets for you.

You're actually making a bet on the outcome of the main draw and the odds they pay are exactly the same as the main draw.

However, there are two key differences:

1. They give no money to charity, so if you're playing the lottery to fund good causes, avoid this site
2. You don't get entered into the millionaire raffle

So, unless you're getting one of the special deals, your overall return will be lower in the long run as you only get the first part of the game.

But, there are lots of special offers - and once you sign up, you'll get a few every week! And how can they afford to run all of the special offers? Very simply, the main lotter gives half of their profits to charity - Lottoland don't.

And remember, if the fun stops, stop.

Michael.