Australia: Online Gambling Bill Banning Credit Cards Approved by Senate
By endorsing the Interactive Gambling Amendment (Credit and Other Measures) Bill of 2023, the Australian Senate has now banned the use of credit cards as a means of payment for online gambling, effective within the next six months. Building on an existing countrywide ban of credit card payment at land-based casinos and digital currencies, those in breach will be faced with fines up to AU$234,750.
This Amendment was first introduced to the Federal Parliament in September 2023, and follows similar measures already implemented in other countries such as the United Kingdom, despite the rise of crypto currency payments in online gaming.
Nevertheless, players need not worry because the majority of online casinos provide a variety of payment methods, whether it’s for deposits or withdrawals. With that said, it’s always recommended to ensure the operator is not only legally operating in Australia but has been tried and tested. This is precisely why many experienced gamblers opt to sign up using NoDepositBonus.guide, because all the listed providers are evaluated and reviewed by casino experts.
What’s the Credit Card Bill to Me?
Apart from the obvious ban on credit card products, there are also another number of other related measures mentioned in the bill. These include substantial fines up to AU$234,750 to any online operators that are not in compliance with the current legislation.
The bill also grants additional enforcement carried out by the Australian Communications and Media Authority (ACMA), with new responsibilities including enforcing any new and existing provisions, while also taking the lead when it comes to issuing penalties to those in breach of the rules.
Having said so, this bill will not be coming into effect just as yet, with the Australian government previously stating that the entire roll-out would take six months to transition. This should give enough time for payment providers, operators, and players to adjust accordingly.
This bill is the result of widespread and in-depth consultations with several stakeholders including banking and payment organizations, harm reduction advocates, operators and online wagering and lottery providers amongst others.
The RWA Reacts
Known for its leading role in advocating the credit card ban in Australia, Responsible Wagering Australia (RWA) also welcomed the recent approval. Kai Cantwell, CEO at RWA noted that this was a well-needed change, and encouraged Australians to only gamble with money they already have.
He also mentioned that this important but necessary step would offer additional protection to players and their families, making it simpler for them to keep track of their finances when online gambling. Cantwell also mentioned that this bill will complement the current Responsible Wagering Australia account management tools for safer gambling, that have also been designed to help players stay in control when betting.
Nevertheless, Cantwell couldn’t help but note his disappointment with regards to the exclusion of certain gambling types from the ban. As things stand, Australian players will still be able to use their credit card to play keno and lotteries, with Cantwell noting that lotteries are one of the most popular forms of gambling in the country, and commonly consumed by people of lower income.
Cantwell also noted how the latest statistics show “that Australians have lost more than AU$3.2 billion on Keno and lotteries between 2020 and 2021”. He also mentioned that ever since keno had been introduced online, these losses shot up by over 400% between 2021 and 2022 and 2022 and 2023.
Calls for a Blanket Ban
Keeping all of the above in mind, both the RWA and Cantwell have called for a complete ban on credit card usage on all types of gambling in Australia. He noted that in order to “effectively reduce the harm, consumer protection measures must exist across all forms of gambling”. He then went on to note that this scenario could create a situation where at-risk gamblers could just shift from one type of gambling to another or opt for less regulated options.
In his speech Cantwell also mentioned how hard members of the RWA have worked, together with members from the financial services industry and the federal government to implement this ban on credit card usage since 2021. The ban will be correctly implemented across all of Australia within six months.
A Long Time Coming
The recommendations might have been set out by the Parliamentary Joint Office on Corporations and Financial Services back in 2021, however these endeavors had been going on for quite some time before that.
In 2019, the Australian Banking Association had hosted a discussion regarding credit card usage and gambling, with an initiative running all the way up to March 2020. This consultation also included taking a look at how banks could offer additional protection to their players.
The introduction of the credit card ban in the UK in spring 2020 only caused calls for the Australian ban to grow louder, with certain parties even deciding to jump the gun and implement their own bans in the meantime, as was the case with Bank Australia, that chose to ban credit card gambling across all its account holders as of October 2021.
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