Clock ticks on the end of credit card gambling in Australia

A ban on using credit cards to gamble online in Australia is looming as a transitional period under a new federal government law ends.

From June 11, customers can no longer fund online accounts held with licensed Australian bookmakers via a credit facility.

The ban relates to credit cards, credit-related products linked to digital wallets and cryptocurrencies.

Several prominent online operators will roll out the ban before the government deadline.

Betfair will be among Australia’s first wagering firms to implement the new laws.

The betting exchange has advised its customers that from May 20 a facility for credit card deposits will no longer be available.

A ban will also apply to online and telephone betting services operated by on-course bookmakers.

Legislation to amend the Interactive Gambling Act 2001 was passed in December. It brings online wagering operators into line with land-based gambling regulations.

Companies that fail to comply with the ban face hefty penalties.

They may be liable for fines up to $234,750.

“The Albanese Government is committed to ensuring that gambling takes place within a robust legislative framework with strong consumer protections, and this ban is helping us to achieve just that,” Minister for Communications Michelle Rowland said when the new laws were passed in December.

“The principle here is simple: Australians should not be gambling with money they do not have.

“This legislation delivers on the commitment we made in April (2023) to ban the use of credit cards for online wagering.”

Under the legislation, the Australian Communications and Media Authority (ACMA) will play a pivotal regulatory role.

ACMA will be given greater powers to enforce the new and existing provisions of the Interactive Gambling Act.

The new laws to minimise gambling harm will be reviewed after two years.

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“Our government takes seriously our responsibility to prevent and reduce harm from online wagering,” Minister for Social Services Amanda Rishworth said.

“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 and the same rules should apply for online gambling too.

“All measures under the National Consumer Protection Framework are now in place as a result of the focused action our government has taken.

“But reducing harm from online gambling is not a set-and-forget exercise.”

The ban comes with the support of the gambling industry lobby group Responsible Wagering Australia (RWA).

A decision to outlaw the use of credit cards in gambling has been made more than four years after the Australian Banking Association hosted a consultation forum on the subject.

An Australian ban was considered inevitable after the UK introduced laws against credit card gambling in 2020.

“The principle here is simple: Australians should not be gambling with money they do not have” – Minister for Communications Michelle Rowland

It prompted some Australian financial institutions to implement their own bans before any legislation changes.

However, some parts of the legislation have drawn criticism from RWA because they don’t include other online gambling platforms.

Lotteries and Keno customers can still use a credit card to make payments.

‘It is disappointing to see that other forms of gambling such as lotteries and Keno have been exempted from the ban, especially when lotteries are the most prevalent form of gambling in Australia and are commonly accessed by people in low-socioeconomic communities,” an RWA statement said when the legislation was passed.