Irish Banks Penalise Online Gamblers

Irish online gamblers may want to reconsider how they finance their entertainment if they are thinking about applying for a mortgage in the near future.

The Irish Examiner reports that Irish banks are scrutinising customers' expenses when they apply for having a mortgage approved or restructured, and online gambling accounts are sometimes used as an excuse to turn down their request.

To be fair, it is not only online gambling that could be a reason; banks are searching for any 'unnecessary' expenses to turn down the request, and the director of the Irish Mortgage Corporation, Frank Conway said that there have been cases where lenders questioned the purchase of mobile phones, the use of Sky and high school fees.

However, according to the Chief Executive of the mortgage debt advisory company Negotiate, Trevor Grant, he has seen how some banks will immediately decline a mortgage if there is evidence of online gambling activity through the applicant's bank account. This is sometimes done regardless of other financial information submitted which could prove that the customer is able to repay all debt.

"When a lender assesses an application for reduced mortgage repayments due to financial difficulty, the customer is required to submit a detailed application, often including current account and credit card statements," he said.

"Not unreasonably, lenders will form a view that if the customers is struggling to pay their mortgage they should be tightening their belts, and they consider gambling, for example, as a non-essential activity and therefore should one of the first social indulgences to be cut."

Online Gambling Up in Ireland

Despite these warnings, it is clear that online gambling and mobile gambling are on the up in Ireland.

Paddy Power, Ireland's largest gambling company, recently showed just how popular these types of wagering have become, with these segments responsible for 80% of the group's profits in the first six months of the year.

During the first half of 2011, punters from Ireland, Britain and Australia wagered €242 million in total through Paddy Power platforms. The group's Australian subsidiary, Sportsbet, also did exceptionally well, helping push profits up.