Australia Seeks to Prohibit the Use of Credit Cards in iGaming

Australia’s government plans to ban the use of credit cards for gambling as a way to prevent gambling-related fines and harm. The Interactive Gambling Amendment (Credit and Other Measures) Bill 2023 would also disallow the use of digital currencies for online gambling activities.

In addition to that, the bill would also allow the minister to prohibit the use of credit cards for newly-emerged products in the future, thus allowing Australia to remain one step ahead of gambling companies.

For reference, brick-and-mortar venues in the country already prohibit the use of credit cards for wagering. However, online gambling laws are yet to catch up because of the relatively new nature of the vertical.

According to Communications Minister Michelle Rowland, the measure is an important step toward protecting the Australian people from harm. According to her, everything boils down to preventing people from betting with money they do not have.

Rowland reiterated the government’s intention to protect at-risk consumers in Australia from the dangers of gambling harm.

If passed, the measure would provide industry and consumers with a six-month transition period before coming into effect. After that, companies that violate the rules will risk a fine of up to AUD 234,750 (around $150,000).

The Country Wants to Protect the Consumers

The new measure stems from a parliamentary inquiry into online gambling launched in 2021. The probe highlighted the lasting consequences of gambling via a credit card. While the people affected by this are fairly few, the harm is too severe to ignore. In addition, Australian experts believe that financial harm caused by gambling on credit can also affect one’s relatives.

Because of that, The Interactive Gambling Amendment (Credit and Other Measures) Bill 2023 was welcomed by Responsible Wagering Australia, which has long supported the ban.

Australia has been increasingly aware of the dangers of gambling harm. For example, a recent study in Victoria revealed links between gambling addiction and suicide. The study pointed out that, over eight years, gambling addiction served as a contributing factor in 184 suicides.

Another recent study, on the other hand, revealed skill-based games’ potential to exacerbate gambling harm and cause mental health issues. Experts explained that the heightened feeling of control offered by such games can often trip people into developing addictive patterns.

Australia remains bullish on making gambling safer for Australian customers. To that end, the country continues to implement new measures and take action against violators. The Victorian regulator, for example, just slapped Tabcorp with the largest fine it has ever handed.