Australian gamblers are set to soon be suspended from using credit cards for making online gambling transactions, as the Federal Government is expected to introduce a new legislative measure aimed at banning the aforementioned payment method within a few months.
Reportedly, the changes are set to implement some recommendations that were made in 2021 as part of a parliamentary inquiry. The measure called for banning credit card transactions at the time, with reports claiming that credit card transactions accounting for up to 20% of online gambling accounts’ deposits in Australia.
The Communications Minister, Michelle Rowland, shared that people should not be allowed to place bets with money they do not really have. In an announcement made late last week, Ms Rowland and the Social Services Minister, Amanda Rishworth, noted that online gambling should be brought in line with the regulation of brick-and-mortar gambling, which already does not permit the use of credit cards.
A consultation with stakeholders on the technical implementation and exact mechanism of the ban is set to be held, with the Federal Government of Australia planning to use so-called Bank Identification Numbers (BINs) to identify and suspend credit card payments as a valid deposit method for online gambling transactions. As explained by Ms Rowland and Ms Rishworth, blocking BINs had already been successfully adopted by Australian casino and poker machine venues as a measure aimed at suspending credit card withdrawals from ATMs.
Interactive Gambling Act 2001 to Be Amended, Government Officials Say
As announced last week, the ban is set to be brought into action through amendments to the country’s Interactive Gambling Act 2001. The Government has revealed that the changes will be rolled out later in 2023, with the planned amendments set to hand out enhanced enforcement powers of the Australian Communications and Media Authority (ACMA).
Social Services Minister Amanda Rishworth explained that minimising gambling-related harm is not a one-off act, and bringing online gambling in line with brick-and-mortar gambling laws which do not allow customers to use credit cards to pay for their gambling transactions.
An inquiry into online gambling is currently being conducted by a parliamentary committee on social policy, which is also expected to make recommendations for the next steps to be taken by the Government.
On the other hand, in 2021, another parliamentary inquiry into gambling and credit cards use, which was held under the previous Coalition Government, headed by Andrew Wallace MP, recommended that the Federal Government should suspend online gambling service providers of gambling, betting and other wagering services, except for lotteries, from accepting credit card payments, including payments carried out via so-called digital wallets. Lotteries have not been part of the proposed measure because they are considered to present a low risk of gambling-related harm.
In a submission to the 2021 inquiry, Responsible Wagering Australia noted that about 20% of gambling accounts’ deposits were made through credit cards. According to information provided to the inquiry by Tabcorp, the company’s proportion of account deposits via credit cards amounted to 13.7% in the 2021 financial year.
Carol Bennett, CEO of the Alliance for Gambling Reform (AGR), welcomed the recently-announced changes on behalf of her group. According to her, it was a significant measure aimed at reducing harm inflicted by online gambling, especially considering the fact many people were experiencing negative consequences from their gambling and were more likely to use credit cards to obtain cash advances. Ms Bennett, however, noted that the Government needs to make sure it closes all possible loopholes to the policy, as it was important to make sure online gambling regulations were put in line with the ones governing other types of gambling in the country.
- Author
Daniel Williams
