A proposed measure seeking to suspend Australian people from using their credit cards for online gambling transactions has faced opposition by some companies that generate profit from gamblers going into debt.
The gambling peak body of Australia has revealed it was against a proposed piece of legislation under which local gambling operators would be prevented from accepting credit card payments for online betting transactions. The bill was unveiled by Stirling Griff, a Centre Alliance Senator. It follows a similar measure being adopted in the UK, under which the acceptance, facilitation or promotion of credit card payments for online gambling services has been criminalised.
For the time being, online gambling in Australia is limited to bookmakers, TABs and so-called betting exchanges. The country’s authorities do not allow online games of chance, such as digital casino-style games. In-play betting on sporting events is also illegal, and so are online services offered by operators that are licensed in foreign countries.
Late last week, local authorities published submissions for a Senate inquiry into the Interactive Gambling Amendment (Prohibition on Credit Card Use) Bill 2020.
As mentioned above, the fact that the trade body representing some of the main gambling operators on the market – Responsible Wagering Australia (RWA) – has opposed the proposed restriction has been no surprise to anyone.
RWA Says No Proof of Policy Failure Linked to Gambling on Credit Exists
As Crikey reported, Responsible Wagering Australia, which currently represents gambling companies such as bet365, Entertain, Betfair, Sportsbet and Unibet, has submitted some claims saying there was no evidence of a policy failure associated with gambling on credit in the country. The body claims there has been no compelling evidence there has been a direct connection between the incidence of problem gambling in Australia and the use of credit cards for funding online gambling transactions.
On the contrary, a number of groups, seeking to prevent local consumers from suffering gambling-related harm – the Alliance for Gambling Reform, Relationships Australia and Suicide Prevention Australia – have made submissions regarding the significant negative effect that gambling has on the country’s residents. The aforementioned organisations have cited various studies of Australians’ gambling habits, losses amounting to billions of dollars, as well as personal stories of people who have faced extremely negative consequences as a result of some gambling operators’ existing policies.
The submission made by the Alliance for Gambling Reform includes a case study of a person who had used their credit card to fund gambling transactions, racking up a debt of over AU$65,000. The organisation claims that it is currently very easy for local gamblers to get an equivalent of a big loan with a massive interest rate and use the money to fund their gambling habits.
Furthermore, Relationships Australia has cited a study carried out by the Australian Institute of Family Studies in 2019. According to the results of this research, many local residents were using their credit cards to make online gambling transactions. At the time, the authors of the study claimed that the use of credit cards for such payments ended up in larger debts for people, who were also forced to deal with a high interest rate.
- Author
Daniel Williams
