Most credit card providers now class gambling as a cash advance transaction, the most expensive way to borrow.
In addition, using a credit card to gamble, even if you intend to pay the balance back in full, means you are borrowing to gamble.
That's not a great idea.
Let's look a little more closely at these two problems.
Charges for gambling
As we noted above, in the vast majority of cases, the charge for making a gambling transaction with a credit card will be the same as the charge for making a cash withdrawal with that same card at an ATM.
That means the provider will impose a higher rate of interest than for purchases and they may also charge a handling fee - an additional one-off charge which is a percentage of the transaction amount.
In most cases, cash advance transactions don't enjoy the standard interest free period credit card purchases (see here for more information) enjoy and, in every case we've ever heard of, they won't pick up any reward points or cash back.
In other words, from the moment the card is used to fund gambling, you're losing money in interest.
This is true of:
American Express
Bank of Scotland
Halifax
Lloyds TSB
MBNA
Natwest
Nationwide
RBS
Santander
However, some providers do see gambling a little differently from other cash transactions.
When gambling isn't exactly cash
First Direct for example, class gambling as a cash advance transaction for the purposes of charging interest.
However, they do not impose the cash advance fee on gambling transactions.
Previously, Barclaycard treated gambling (termed gaming) as cash from the end of May 2012 but there was no £2.99 minimum payment on the percentage fee. Note however, this definition was removed from their summary boxes as of November 2012.
Gambling may also be included in slightly unusual rules about cash withdrawals in general.
For example, Sainsbury's Bank's Gold credit card used to offer a standard interest free period on cash advances. Gambling transactions were not distinguished from this.
More examples of leniency on cash advances are in this guide but proceed with caution: it's not clear from their card terms and conditions which of them count gambling as cash.
What counts as gambling?
Credit card providers are strict on the types of purchases they class as gambling transactions. They can include:
Scratch cards and lottery tickets
Online poker, bingo or other games of chance online
Any financial transaction that takes place in a casino, bookies or other gambling establishment. That can even include food and drink bought in a gambling establishment.
In short, there's little leeway and no loopholes.
According to the gambling commission, 73% of people aged over 16 - that's 3.5 million - took part in some kind of gambling in 2010.
Some of this gambling, like buying a lottery ticket, many people wouldn't even see as 'real' gambling. But the credit card companies charge more for it nonetheless so it's worth looking out for.
Gambling with borrowed money
At the very least, then, using a credit card for gambling adds a significant amount to the bet and eats into any winnings.
Much more importantly than that, though, paying high interest rates on borrowing means seriously risking falling into a debt spiral: borrowing more and being able to pay back less.
For thousands of gamblers every year, borrowing to keep gambling leads to serious, unmanageable debt problems.
As we've said, a lot of Britons gamble in some form and may encounter these rules more or less accidentally. But contemplating borrowing money to use specifically for gambling could be an indication that you have a gambling problem.
Gamcare is the UK's largest specialist help organisation for those with gambling problems. They offer advice to anyone concerned about their own gambling or that of a friend or family member.
NHS Direct also has a Gambling Addiction page with links to other useful advice organisations.
Those facing any level of debt as a result of gambling should seek help from an independent advice agency.
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