Australian Gamblers Soon Banned From Using Credit Cards To Fund Online Betting

Gamblers will soon be blocked from using credit cards on online betting, with legislation to be introduced by the federal government later this year. 

This change will implement recommendations from the Parliamentary Joint Committee on Corporation and Financial Service from November 2021, protecting vulnerable consumers from gambling harm. 

Research shows that Australia has the highest gambling losses per adult, with a total of $25 billion in losses every year. 

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The exact mechanisms and technical implementation will be consulted with stakeholders, but the government plans to use Bank Identification Numbers (BINs) to identify and block credit card payments. 

Blocking BINs has been successfully deployed by Australian casinos and poker machine venues to stop credit card withdrawals from ATMs. It was also used in the United Kingdom to implement its credit card ban on online gambling. 

Minister for Communications Michelle Rowland and Minister for Social Services Amanda Rishworth announced on Friday. 

“It’s as simple as this: People should not be betting with money they do not have,” Ms Rowland said. 

The Australian Institute of Family Studies estimates that 7.2 per cent of Australians are already experiencing or at risk of experiencing, gambling harm, the impact of which typically extends to other people, including family and friends.  

Financial Counselling Australia also supports the announcement by the government to ban the use of credit cards for online gambling.

“We should never have to discuss credit cards and gambling in the same sentence ever again,” said Lauren Levin, FCA’s Director of Policy and Campaigns.

Ms Levin said online gambling increased during the pandemic, and “a lot” of it was also funded by credit cards.

A financial counsellor told her about a young person forced to sleep in his car after spending $500,00 on a single licensed operator, and the operator ignored his plea to unsubscribe.

Ms Rishworth said the Albanese Labor Government’s key priority would be minimising the harm caused by problem online wagering. 

“Importantly, minimising this harm is not a set-and-forget exercise. Bringing online wagering into line with land‑based gambling, where credit cards cannot be used, is another positive step,” Ms Rishworth said. 

Ms Rishworth indicated that the government was open to further reform. “We’ll now look to what’s next, along with our state and territory colleagues.” 

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