The Interactive Gambling Amendment (Credit and Other Measures) Bill 2023, introduced in September, has significant implications for the gambling landscape in Australia. This legislation, aimed at banning credit cards and other credit-related products, as well as digital currencies in the context of gambling, has been making waves in both legislative and industry circles.
With recent approvals in both the House of Representatives and the Senate, the bill is poised to become law, fundamentally reshaping the way Australians engage with online gambling platforms.
The Ban on Credit Cards
Australia already has restrictions in place regarding gambling with credit cards at brick-and-mortar establishments. However, the passing of this bill extends these restrictions to cover online gambling activities, effectively instituting a blanket ban on credit card gambling across the country. The implications of this move are profound, not only for consumers but also for operators and stakeholders within the gambling industry.
Key Provisions of the Bill
The bill not only prohibits the use of credit products for gambling but also introduces stringent penalties for non-compliance. Operators found violating the ban could face fines of up to $234,750. Additionally, the Australian Communications and Media Authority (ACMA) will be empowered to enforce these regulations, further tightening the regulatory grip on the industry. However, these changes will apply only to Australian-licenced betting platforms. As no online casinos hold Australian licences, offshore sites that Australian players use will not be impacted by the changes. That means that sites that have been operating in the country for years as well as the many new online casinos on the constantly updated list of those that have recently launched in Australia will enjoy business as usual. These sites, and others based outwith Australia, can continue to accept credit card payments as well as eWallets (although these are becoming less common according to Jonathan Askew) and cryptocurrencies.
Transition Period and Stakeholder Consultation
While the bill’s passage is imminent, its implementation will not be immediate. The Australian government has announced a six-month transition period to facilitate the adjustment of operators, payment providers, and consumers to the new regulatory framework. This period underscores the government’s commitment to ensuring a smooth transition and minimizing disruption within the industry.
Moreover, the bill is the culmination of extensive consultations with various stakeholders, including operators, harm reduction advocates, and financial institutions, reflecting a collaborative effort to address concerns surrounding gambling-related harm.
Industry Response and Advocacy
The passage of the bill has elicited mixed reactions within the gambling industry. Responsible Wagering Australia (RWA), a prominent advocate for the credit card ban, has welcomed the move, emphasizing the importance of protecting consumers from potential harm.
RWA CEO Kai Cantwell underscored the need for responsible gambling practices, asserting that individuals should only gamble with funds they possess. However, Cantwell expressed disappointment over the exclusion of certain forms of gambling, such as lotteries and keno, from the ban, citing concerns regarding their prevalence and accessibility, particularly among vulnerable demographics.
The Case for a Comprehensive Ban
Despite the progress made with the credit card ban, calls for a more comprehensive approach to gambling regulation persist. Cantwell and RWA have been vocal in advocating for a blanket ban on credit card use across all forms of gambling, citing the need for consistent consumer protection measures. They argue that piecemeal regulations could inadvertently exacerbate gambling-related harm by pushing individuals towards less regulated gambling activities. After all, citizens can readily access offshore sites and cryptocurrency casinos and betting sites, which often provide a regulated and safe alternative to those unable to access online gambling options locally.
Historical Context and International Precedents
Efforts to curtail credit card use in online gambling have been underway for some time, with echoes of similar initiatives in other jurisdictions. The bill’s inception aligns with recommendations put forth by the Parliamentary Joint Committee on Corporations and Financial Services, reflecting a concerted effort to address longstanding concerns regarding gambling-related harm. Moreover, the bill follows in the footsteps of Great Britain, which implemented a ban on credit card gambling, signalling a broader trend towards stricter regulation of the industry.
Corporate Initiatives and Preemptive Measures
In anticipation of regulatory changes, some entities have taken proactive measures to restrict credit card use for gambling purposes. Bank Australia, for instance, made headlines in October 2021 by announcing a voluntary ban on credit card-funded gambling transactions for its account holders. Such initiatives underscore the growing recognition within the financial sector of the need to mitigate the risks associated with gambling-related harm.
