Credit card ban for online gaming imminent in Australia

Australia’s federal government has revealed plans to comprehensively conclude the ban on credit card usage for gambling related activities by introducing a ban on credit card purchases on online gaming platforms.

As of yet there is no hard date set for the integration of the ban, the Labour party is planning to introduce legislation to the house later in the year.

The government intends to make use of the same system that was implemented when a similar ban was rolled out across casinos in Australia. This would involve preventative measures against credit card withdrawals from ATMs. Identifying the bank identification numbers and then block credit card payments.

Prior to the instigation of that regulation, a parliamentary committee conducted an inquiry that examined the previous regulatory legislation related to credit cards and digital wallets being used for online gambling.

In their findings a recommendation for this legislation was suggested stating while there is a low proportion of gamblers making use of credit cards, the harm that has been caused is as they described “significant and life changing”.

The committee also noted a consensus between regulator Responsible Wagering Australia and Australia’s largest gambling operator Tabcorp with both, the most significant players on either side of the fence, unopposed to a credit card ban.

In a survey commissioned by the Australian Banking Association in 2019, it was found that 81% of participants agreed credit cards should be restricted or even banned in some form or another.

This would have been particularly potent in regards to understanding the stance taken by the Australia’s public as the Australasian nation possesses one of the highest rates of gambling participation in the world, with 80% of Australians partaking in some form of gambling annually.

Given these results, the Minister for Communications Michelle Rowland and Minister for Social Services Amanda Rishworth, have stated that a fresh credit card ban in regards to online gaming is uncompromisingly in line with community community expectations.

Emphasising that, the main goal is to mitigate risks and minimise harm, supporting those who are vulnerable to these issues related to online wagering.

Interestingly, consultation with entities and stakeholders within the industry will be conducted, in order to design and draft the legislation as well as the course of action required to implement the new regulations.

An act that several other legislatures, including the UK government of most note, have come under fire for avoiding. The $25 billion industry in Australia is so large and lucrative that the legislative bodies that regulate the sector are most probably global leaders, and this consideration is further evidence of this.

Regulators working with operators as opposed to aiming at keeping them in line can go a long way to propagating a healthy, mobile and effectively safe ecosystem for prosperity and the highest possible mitigation of risk.

SiGMA Asia

With all these opportunities, dynamic industry and scalable innovation occurring, what better place for SiGMA Asia to be headed in July than the brilliantly vibrant Philippine capital. The summit promise incredible industry insights and a plethora of premium networking possibilities.