Sports betting operators in Australia have left their long-time opposition to restrictions associated with credit card use for online gambling as the Federal Government is considering whether to make further changes in the country’s gambling legislation.
The major Australian online gambling companies, including Ladbrokes, Sportsbet and bet365, have promised to support new measures that are set to make some changes in order to bring online gambling legislation in line with laws that govern the rest of the gambling sector in the country, including casinos, gaming lounges, TAB outlets, etc.
The companies, which are members of Responsible Wagering Australia (RWA), have said they will develop a technical solution aimed to deliver the credit card-related reform and have sought the assistance of the largest banks and payment processing operators in Australia to make sure that the aforementioned changes will be properly delivered.
The independent peak body for Australian-licensed gambling service providers has long resisted any restrictive measures, arguing there was no actual evidence there was a direct link between the use of credit cards for processing gambling translation online and the occurrence of gambling addiction.
The companies that were against the change also claimed that stripping customers of their ability to use credit cards to carry out gambling transactions would offer a serious advantage to overseas gambling platforms that offer their services illegally to local customers. Such operators’ services openly violate Australian gambling legislation and tend to offer high-risk online casinos and digital poker machines, as well as other gambling products that are currently banned in the country.
Credit Card Ban on Gambling Transactions Will Provide Better Customer Protection, Campaigners Say
As Casino Guardian previously reported, Andrew Wallace, a Member of Parliament from the Liberal Party, has been one of the most eager proponents of a federal ban on credit card transactions in online gambling platforms. Campaigners who have been looking for a stricter regulatory regime to be imposed on the industry have noted that the problem associated with credit card gambling becomes even more serious because of high interest rates and increased chances of loss that deteriorate the problem not only for gamblers themselves but also for their families.
In July, Tabcorp shared that it would not oppose any potential ban on the controversial practices in the industry, as long as Australian newsagents are still given the chance to sell lottery tickets to customers.
Protection of local customers against gambling-related harm has become even a more discussed topic since the Covid-19 pandemic outbreak. A recent survey held by the Australian Gambling Research Centre has found that before the coronavirus crisis, 62% of players used to gamble online. According to data provided by the research, the online gambling participation rate increased to 78% during the pandemic.
Some Australian banks, such as Macquarie, Suncorp and Citibank have announced a decision to suspend the use of credit cards in online gambling transactions but the four largest banks in the country are still considering such an option.
They have claimed that the implementation of a ban on credit card gambling could be a problem because such a move would require them to introduce a block on payments to the merchant category codes for gambling. Such a move, however, would also mean that credit cards would no longer be available for fundraising activities or lottery tickets sales.
- Author
Daniel Williams
