In recent legislative developments, the Australian government has made a significant move to enforce stricter controls over online gambling activities, with a primary focus on the financial instruments utilized for such transactions. On the 6th of December, the Australian Senate ratified the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023, having first been proposed in September of the same year. The primary goal of this legislation is to impose a nationwide prohibition on the use of credit cards, other credit-linked products, as well as digital currencies for online gambling purposes.
The bill was ushered through the House of Representatives last month with resounding support, placing it on a clear course to the Senate floor where it received further backing, thereby positioning it for full enactment into law. With the pre-existing ban on the utilization of credit cards in terrestrial gambling establishments, this latest measure effectively creates a comprehensive interdiction of credit card gambling that spans across all of Australia.
Expanding further than the ban on credit products, the newly approved bill incorporates additional provisions aimed at fortifying its enforcement. Notable among these is the introduction of substantial fines for non-compliant operators; businesses that fail to adhere to the ban could face penalties as steep as AU$234,750. This legislation gives the Australian Communications and Media Authority (ACMA) expansive capabilities to uphold the new and existing penalties, enabling it to take direct action against entities found in breach of the credit ban.
Despite these advancements, the changes prescribed in the bill will not take immediate effect. The Australian government has outlined a six-month transitional phase designed to facilitate a smooth adjustment process for operators, payment providers, and consumers to become compliant with the new regulations. This transitional period is slated to commence upon the bill receiving royal assent.
The creation of this bill did not happen in isolation; it is the product of comprehensive consultations held with an array of stakeholders including gambling operators, harm reduction advocates, lottery providers, and financial payment services. One of the bill’s staunchest supporters, Responsible Wagering Australia (RWA), expressed its approval following the Senate’s decision. Kai Cantwell, CEO of RWA, highlighted the necessity of the measure, advocating for responsible gambling practices where individuals only gamble with funds they possess.
“This is an important measure to protect customers and their loved ones, making it easier for people to stay in control of their own gambling behaviour,” Cantwell underscored. He further added that the enactment would serve as an enhancement to safer gambling account management tools already offered by RWA members to their customers.
Nonetheless, Cantwell expressed criticism at the legislation’s partial scope, pointing out an exception that allows the use of credit cards for lottery and keno games. He referred to this as “disappointing,” citing statistics indicating lotteries as the predominant form of gambling in the country, particularly within lower socioeconomic communities. In lieu of these concerns, RWA is now campaigning for an all-encompassing ban that would preclude credit card use for all gambling activities, insisting that without uniform protective measures, vulnerable individuals may simply transition from one gambling platform to a less regulated one.
The Interactive Gambling Amendment (Credit and Other Measures) Bill 2023 implements recommendations from the Parliamentary Joint Committee on Corporations and Financial Services, dating back to November 2021. Nonetheless, the drive to eliminate credit card usage in online gambling has been ongoing for several years. For instance, in December 2019, the Australian Banking Association initiated discussions on the role of credit cards in gambling, stretching into March of the following year and examining how banks could otherwise support the protection of gamblers.
This heightened scrutiny on credit card gambling gained substantial attention after Great Britain introduced a similar prohibition in the spring of 2020. In anticipation of regulatory changes, certain Australian financial institutions acted preemptively to institute self-imposed bans; Bank Australia, for instance, announced in October 2021 that its credit cards could no longer be employed for funding gambling accounts.
As the landscape of online gambling faces stringent new regulations, Australia’s commitment to reducing gambling-related harm takes a firm stride forward with the bipartisan support for this transformative legislation.
