The Russian government supported a ban on credit card rates and proposed to limit overdrafts

Russian government approved a bill to ban credit card betting, but recommended clarifying language and eliminating redundant provisions.

The draft proposes banks to block transactions with the code MCC 7995, which is used for gambling. It also contained a requirement to prohibit the placement of betting shops next to microfinance organizations, but the government called this norm redundant.

The Cabinet of Ministers proposed to additionally prohibit replenishment of accounts with borrowed funds of individual entrepreneurs and corporate cards, as well as to consider the possibility of blocking bets made through overdrafts on debit cards.

The Unified Payroll Processing Center supported the initiative, noting that it is banks that should determine the type of card and block transactions. However, the head of the organization Elena Sheikina stressed that the measure will solve the problem only partially: players will be able to use cash loans or microloans.

Market representatives believe that the effect of the ban will be minimal. Nikolay Oganezov, Advisor to the General Director of FONBET, reminded that bookmakers do not see the type of client's card, and the share of credit payments is already small. Olimpbet agreed that the measure would be rather symbolic.

This is the second attempt to introduce such a ban. The previous initiative by the same senators did not receive government approval and was withdrawn.