While online and land-based gambling are becoming more and more acceptable among financial institutions, some banks are still quite dubious about being involved in the market. This week, HSBC announced that it would be pulling out of the gaming industry by no longer offering its services to punters and bookmakers.
The news first broke in July, when bookmakers reported that HSBC got in contact with a wide range of bookmakers. The bank informed that even though they have a good standing as customers, HSBC would no longer be serving them due to its pulling out of the gambling market.
According to Intergame Online, one bookmaker was informed by HSBC that his bank account was being closed. He was told that he had 60 days to find other arrangements for his banking until HSBC forcibly closes his account. The letter that the individual received stated: “Following a recent strategic review of our exposure to the gaming and gambling sector, we have concluded that this will not be an area of focus for HSBC.”
This particular incident took place in the United Kingdom. At the moment, we are not sure whether HSBC will be assuming this stance in Australia and other locations around the world. A spokesperson for HSBC released a statement confirming the company’s new plan to ‘limit exposure’ in the gambling word. This likely means that the financial institution will begin transitioning out of the market.
He also noted that HSBC will continue to honour debit card payments of punters to gambling operators. Recently, a rumour has persisted that the bank would not process gaming payments; however, the company will remain in the market in his capacity. It seems that HSBC is only pulling out from the operator’s end of the gaming market.
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