Credit card ban makes small dent in online gambling spend

A new study has found that Australia’s 2024 ban on the use of credit cards for online gambling has led to only a modest reduction in online sports betting.

The research, conducted by the e61 Institute, showed the decline was driven more by inconvenience than by cutting off access to borrowed money.

It is a significant finding as the federal government has utilised the ban on credit card betting as an example of measures it has taken to reduce gambling harm. It comes as Prime Minister Anthony Albanese faces increased pressure to act on gambling advertising reform.

The credit card ban was instituted in June 2024, however the study determined that before the ban, only two per cent of credit card accounts were used for gambling. Most online gamblers already used debit or transaction accounts.

The study found that those who did use credit cards tended to have higher incomes and more cash on hand, suggesting they were not typically the most financially vulnerable.

However, the ban did impact gambling activity, with the average gambling expenditure among affected users falling by about $50 per fortnight.

There was also a 15 per cent drop in the likelihood of gambling, while about one-third of these users stopped gambling altogether in the six weeks following the policy.

It did find that the reduction in gambling behaviour was mainly due to the extra hassle of switching payment methods. The biggest declines were among casual gamblers making small bets.

The report also found no significant improvement in overall financial health – such as increased savings or reduced debt – among those affected, at least in the short term.

The impact of the ban was limited but did make gambling less convenient, especially among casual gamblers. However, since credit card use was already a small part of the market, the overall reduction was not significant.

The authors of the study said greater reductions in gambling harm might be achieved by targeting other forms of gambling, such as poker machines, which are more closely linked to problem gambling in Australia.

Read the full study