Australian government tables new credit card ban legislation
The Interactive Gambling Amendment Bill 2023 will seek to ban betting with credit cards and credit-related products to “protect vulnerable Australians and their loved ones”
The Australian government has tabled legislation to ban credit cards payments and introduce fines for operators who don’t enforce the new measures.
The Albanese Labour government has put the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023 to parliament as it continues to introduce further restrictions on the Australian betting industry.
Alongside outlawing betting with credit cards, the ban would also cover other credit-related products and digital currencies. If an operator fails to adhere to the new rules, it could be subject to fines of up to A$234,750 (£120,462).
This new bill will also expand the powers of the Australian Communications and Media Authority (ACMA) to enforce new and existing civil penalty provisions.
Should the new amendment bill be passed into law, consumers and the gambling industry will be given a six-month transition period that would begin from the date of Royal Assent.
Michelle Rowland, Minister for Communications, said: “It’s as simple as this: people should not be betting with money they do not have.
“The government remains committed to protecting Australians from gambling harms.
“Legislating a ban on the use of credit cards for online gambling will help to protect vulnerable Australians and their loved ones,” Rowland concluded.
Using a credit card at land-based venues in Australia is already illegal, and Minister for Social Services Amanda Rishworth said that this bill is the latest step the government is taking to address gambling-related harm.
She commented: “You can’t use your credit card to place a bet for land-based gambling, and the same rules should apply for online gambling too.
“We’re serious about protecting vulnerable Australians from the harm we know online gambling can cause. Any platform breaching the new rules will face penalties.
“We know minimising the harm caused by online gambling is not a set and forget exercise, and I look forward to working with my state and territory counterparts on what comes next to continue this positive change,” Rishworth added.
Alongside the ban on credit cards, the government will also introduce mandatory customer pre-verification measures. These will see operators required to prove a customer’s identity when they register for a new account and before they place a bet.
The requirement is expected to be in place before the end of September.
This new bill comes as a result of the recommendations from the Parliamentary Joint Committee on Corporations and Financial Services that were published in November 2021.
The call to ban the use of credit cards for gambling purposes has been discussed for many years in Australia, with the Australian Banking Association organising a consultation on the subject, with a full report released in December 2020.
In 2021, Responsible Wagering Australia members, including bet365 and Entain, agreed to support a ban on the use of credit cards to place bets. At the end of June 2023, the Standing Committee on Social Policy and Legal Affairs laid out a 31-point plan to help mitigate the potential negative effects of gambling.