Previously, players in Australia have been able to fund gambling using a credit card or other similar products. However, the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023, which was introduced last September, has put an end to this practice with the new ban, aiming to combat problem gambling and provide better safeguards for online gambling activities.
The legislation amending the Interactive Gambling Act 2001 was approved in the country’s parliament late last year. Australia’s house of representatives passed the bill in November, allowing it to progress to the senate, where it received the green light a few weeks later, marking a significant shift in the nation’s approach to online gambling regulations.
The credit card ban applies to almost all online gambling activities in Australia. It’s important to note that a prohibition on land-based gambling funds via credit card was already in place. The new online ban excludes certain games, with consumers still permitted to use credit cards to play lotteries and keno, which has sparked some criticism from certain quarters.
A six-month transition period was instituted to allow licensed operators to adjust to the changes, a period that has now concluded. Those who breach these new rules face hefty penalties, with fines up to AU$234,750 (£121,809/€144,025/US$154,978).
The bill also enhances the powers of the Australian Communications and Media Authority (ACMA), enabling it to enforce new and existing penalty provisions. This authority is now responsible for issuing penalties for any breaches, thus strengthening regulatory measures in the online gambling space.
“Our government takes seriously our responsibility to prevent and reduce harm from online wagering,” stated Amanda Rishworth, the minister for social services. “Our ban on credit cards will help with this goal. You can’t use your credit card to place a bet for land-based gambling. Now the same rules apply for online gambling,” she asserted, cementing the government’s stance on this critical issue.
The credit card ban is only one of many steps Australia has taken to mitigate gambling-related harm. Other recent initiatives include launching BetStop, the national self-exclusion register. Since going live last August, more than 22,000 Australians have self-excluded from online wagering and promotions, indicating a broad support system to manage gambling behaviors.
Additionally, the government has introduced mandatory pre-verification.
. This requires operators to verify a customer’s identity when they register for an account and before they can start betting. Online operators are also required to send customers monthly activity statements outlining their wins and losses, thus ensuring transparency and enabling better financial management for gamblers.
Other measures include replacing the “Gamble Responsibly” message on wagering advertising with evidence-based taglines. Moreover, the government has committed to introducing nationally consistent staff training to further fortify responsible gambling practices.
Looking to the future, from September, mandatory minimum classifications for gambling-like content in computer games will come into effect. This is another forward-thinking step to protect vulnerable populations, especially the youth from potential gambling harms.
“I am proud of the steps we have taken so far to protect vulnerable Australians,” Rishworth continued. “We recognize there is still much to do – and we will keep working to create a safer environment for Australians at risk of gambling harm.”
Minister for communications, Michelle Rowland, added: “Australians should not be gambling with money they do not have. Last year, the Albanese Labour government committed to banning credit cards for online wagering – and we’ve delivered.”
“This ban builds on the significant progress to minimize gambling harm that the Albanese government has made over the past two years, which is already benefitting thousands of vulnerable Australians,” she continued. “Our commitment to ensuring that gambling takes place within a robust legislative framework with strong consumer protections remains steadfast and we will have more to announce in due course.”
However, this landmark decision has not been without criticism, particularly over the exclusion of certain types of gambling like lotteries and keno. Responsible Wagering Australia (RWA), a leading advocate for a comprehensive credit ban, has reiterated calls for extending the ban to cover all forms of gambling.
“This is an important measure to protect customers, making it easier for people to stay in control of their own gambling behavior,” RWA CEO Kai Cantwell stated. “It will complement the existing offering of safer gambling account management tools by RWA members. RWA and its members support the extension of this measure to all forms of gambling that have been exempted from the ban such as lotteries and keno.”
“If consumer protection measures aren’t consistent across all forms of gambling it will incentivize vulnerable Australians to move to less-regulated types of gambling, where they are more at risk of harm,” Cantwell warned, underscoring the need for cohesive and all-encompassing policies.
This paradigm shift in Australia’s online gambling regulations promises a safer and more controlled environment for its citizens while igniting a wider debate on the far-reaching impacts of gambling practices.
