Australia Takes Decisive Step to Curb Online Gambling with Credit Cards
In a significant move to tackle problem gambling, the Australian government has introduced new legislation that aims to ban the use of credit cards for online gambling in the country. The Interactive Gambling Amendment (Credit and Other Measures) Bill 2023 not only prohibits credit cards but also extends its reach to encompass digital currencies.
The Interactive Gambling Amendment Bill
Under the proposed amendment, operators who fail to enforce the ban could face substantial fines, with potential penalties of up to AU$234,750 (£120,462/€140,014/US$150,467). The bill also empowers the Australian Communications and Media Authority (ACMA) to enforce these new regulations, with the authority responsible for issuing penalties to those who do not comply.
If the amendment successfully becomes law, a six-month transition period will be put in place, affecting both the gambling industry and consumers. This transition will be effective immediately following the Royal Assent.
Australia already has a prohibition on gambling with credit cards at physical locations, and this bill aims to align online gambling regulations with the existing ban, effectively creating a comprehensive restriction on all forms of credit card gambling.
Michelle Rowland MP, the minister for communications, emphasized the core principle behind this legislation, stating, “It’s as simple as this: people should not be betting with money they do not have. The government remains committed to protecting Australians from gambling harms.”
This bill represents the culmination of recommendations made by the Parliamentary Joint Committee on Corporations and Financial Services in November 2021, addressing an issue that has been under consideration in Australia for many years. The debate on banning credit card gambling gained momentum after Great Britain successfully implemented its own ban on credit card gambling in the spring of 2020.
The government engaged with various stakeholders, including operators, harm reduction advocates, wagering and lottery providers, and banking payment organizations, to shape this amendment bill. Certain parties, such as Bank Australia, took proactive steps to implement their bans, illustrating the industry's commitment to addressing this issue.
Amanda Rishworth MP, the minister for social services, emphasized the government's commitment to protecting vulnerable Australians from online gambling harm. She stated, “You can't use your credit card to place a bet for land-based gambling, and the same rules should apply for online gambling too. We're serious about protecting vulnerable Australians from the harm we know online gambling can cause. Any platform breaching the new rules will face penalties.”
In addition to the credit card ban, Australia has implemented various measures to combat gambling harm, including monthly activity statements, new taglines to replace “Gamble Responsibly,” and nationally consistent training for sector staff. The BetStop national self-exclusion register allows consumers to exclude themselves from gambling with all Australian licensees, further enhancing responsible gambling practices.
The government is also planning to introduce mandatory customer pre-verification, requiring operators to verify a customer's identity before they can place a bet, expected to be in place by the end of September. Furthermore, the government is considering additional recommendations from a parliamentary inquiry into online gambling and will convene a meeting of state, territory, and commonwealth ministers responsible for online wagering before the end of 2023.
This legislative action underscores Australia's commitment to addressing problem gambling and fostering a safer and more responsible gambling environment for its citizens.
