Australia Set to Ban Credit Card Deposits for Online Gambling
The latest shake-up of the legislative chess board in Australian gambling law is a move to ban online deposits at casino operators made via a credit card payment. It is a strong indication of the direction being taken towards gambling legislation, a pattern that is gaining increasing momentum across the United Kingdom and Australia. What remains to be seen is how and when the enforcement of these new control measures will be enacted.
Credit Card payment processing will be ceased across Australian casino platforms. The law change will affect customers trying to make online casino deposits using the payment method.
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On the side of the government there is strong support for this latest legislative action. The government believes that allowing customers to bet on leverage is a recipe for societal problems, increasing debt, and just generally bad for the social welfare system which is already showing major signs of stress and fragility. With this in mind, the measure being proposed will be an amendment to the Gambling Act of 2001, and will grant the ACMA the authority to enforce the law in this case.
Following a study in 2021 conducted by the gambling authorities in Australia, it became clear that on aggregate approximately 20% of gambling deposits in the country were being done through a credit card. One operator, Tabcorp, seemed to confirm the accuracy of the study after revealing that during the preceding financial year 14% of deposits made to its platform had been via a credit card.
As pointed out by several Australian government ministers, credit card payments are already blocked from brick and mortar casinos across the country. The so-called BIN blocking framework can be easily leveraged to block the same type of payments to online gambling platforms.
Scale of Benefits Called into Question
There are both pros and cons to this move, and it’s important to evaluate them evenly. On the one hand, the ban will help to address the issue of gambling addiction in the country. According to the Australian Gambling Research Centre, around 0.8% of the Australian population have a gambling problem. By banning credit cards, the government is taking a proactive step to reduce the risk of individuals falling into debt due to gambling.
However, it is thought that the ban could lead to unintended consequences. It may encourage some people to use less secure payment methods, such as e-wallets, which could put them at greater risk of fraud or identity theft. Also, the ban may lead to a decrease in revenue for online gambling sites, which could have knock-on effects for the wider industry and the tax revenues it generates.
It’s becoming clear that an outright ban on credit cards for online gambling deposits is a complex issue. While it may help to reduce the risk of gambling addiction, it could also have unintended consequences. It’s now up for the government to carefully monitor the effects of the ban and weigh up the pros and cons before taking further steps.
Australia Taking the Lead on the Issue
The Australian political position on gambling is perhaps one of the most dynamic and balanced across the world. With such a measured approach to policy making they’ve been able to act as thought leaders in the gambling law frameworks adopted across the world. Constantly pushing the societal consequences as a prominent point of consideration, Australia remains a country that promotes safe gambling.
This culture and care for the gambling customers has at times fallen by the wayside, as has been evidenced during the fiasco surrounding Crown Resorts and The Star. The two casino conglomerates have violated several laws surrounding AML and underage gambling protections. Given the severity of these violations, lengthy lawsuits have ensued and multi-million dollar fines handed down.
Ultimately, Australia raising the alarm around online gambling payments through credit cards should come as no surprise. As countries like the UK and Australia tighten their grip on what is allowed in online gambling, there should be an active response from the industry to pre-emptively take measures to better protect customers and deliver the most transparent experience possible.
