Use of Credit Cards for Online Gambling Now Banned in Australia

Article by : Erik Gibbs Jan 23, 2024

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The upper house in Australia has officially passed a bill that prohibits the use of credit cards for online gambling. In November, the Australian House of Representatives voted in favor of the bill, and now, remote casino businesses could face fines of up to $155,000 if they fail to enforce this prohibition within the granted six-month transition period.

A media release on the official Ministers for the Department of Social Services website clarified that the ban extends to “credit-related products and digital currency.”

This legislation mirrors a similar bill in the UK that has been in effect for several years, where even payment solutions like digital wallets may be considered illegitimate for remote gambling if a user has used a credit card to fund their wallet’s balance.

The extension of the ban on credit cards to online gambling in Australia builds on the existing prohibition at land-based gambling establishments, contributing to the ongoing implementation of gambling-related reforms aimed at enhancing safety for Australians.

Earlier this year, the government introduced the national self-exclusion register BetStop, which has assisted over 13,000 individuals in Australia in excluding themselves from remote gambling and related promotions.

The launch of BetStop coincided with an amendment mandating remote casinos to implement pre-verification for customers, enhancing efforts to identify and prevent underage gambling and facilitating the avoidance of online casinos for BetStop-registered Australians.

In the preceding month, an agreement was reached to classify video games with gambling-like content as M (Mature, i.e., R15+) starting September 2024.

Simulated gambling games will be restricted to individuals aged 18 or older. Additional measures include standardized national staff training and a law requiring remote gaming operators to provide clients with monthly activity statements.

The government’s decision on credit card use comes in response to a report from the House of Representatives Standing Committee on Social Policy and Legal Affairs, addressing the impact of remote gambling on individuals struggling with problem gambling.

Launched in September 2022, the final report, released in June, contains 31 recommendations. The data presented in the report reveals that Australians face total gambling losses of AU$25 billion annually, making Australia the leader in gambling-related losses per capita globally.

The statistics also show a significant increase in online gambling participation, rising from 12.6% to 30.7% between 2010-11 and 2019-22. Additionally, 46% of individuals engaged in any form of gambling in 2022 were identified as at-risk for problem gambling.

The Committee, focusing on the harms associated with gambling, proposed various recommendations to address gambling-related issues.

These recommendations include the creation of a national education campaign on online gambling, enhancements in detecting and blocking offshore iGaming and betting websites and proposals for bans on gambling inducements and advertisements.