Australia bans credit cards for sports betting with licensed bookmakers

The Australian Labour party is set to unveil a new proposal today, which aims to prohibit online gambling firms from permitting their clients to use credit cards.

The implementation date for the ban is yet to be determined, but the parliamentary legislation to enforce it is expected to be introduced later this year.

As per the 2021 parliamentary committee enquiry into online gambling, lotteries will be exempted from the ban that has been imposed.

A new ban is set to be implemented, which will bring about the regulation of credit cards and digital wallets for online gambling with bookmakers.

In an effort to align online gambling with other services that do not permit the use of credit cards, a ban has been implemented.

The Labour party has announced that it will engage in consultations with industry groups and stakeholders regarding the draught legislation and the best approach to implementing the proposed ban.

The government is reportedly considering implementing a system similar to the one used in Australian casinos to prevent credit card withdrawals from ATMs. This would involve the use of bank identification numbers (BINs) to block credit card payments.

It remains unclear whether Visa debit card deposits for sports betting and Mastercard debit card bookmaker deposits will continue to be permitted.

It is expected that alternative payment methods for sports betting, such as PoLi or direct bank transfers, will remain unaffected.

According to the committee’s report, even though the percentage of individuals utilising credit cards for online gambling is minimal, the damage inflicted can be substantial and have a profound impact on one’s life.

As per the Australian Government, the ban has been implemented with the aim of reducing harm and is consistent with the expectations of the community.

According to a survey commissioned by the Australian Banking Association (ABA) in 2019, a significant majority of respondents, 81%, expressed their support for the restriction or ban of credit cards in some form.

The evidence presented by the ABA during the online gambling enquiry was deemed highly sensitive and potentially misleading.

Lottery services have been exempted from the ban due to their low potential for causing gambling-related harm.

According to the Minister for Communications, Michelle Rowland, and the Minister for Social Services, Amanda Rishworth, the implementation of a ban on credit card usage for sports betting websites is a crucial step in safeguarding Australians from the harmful effects of problem gambling.

According to sources, it has been emphasised that individuals should refrain from gambling with funds they cannot afford to lose.

The Australian government has announced additional measures to assist citizens who are at risk of being negatively impacted by online gambling.

Following the ongoing parliamentary enquiry into online gambling, the government has announced that it will seek further advice on the matter once the enquiry has reported back.

The release of the complete report and recommendations on online gambling is anticipated to be delayed until the end of this year.