The chamber of Representatives, which is the lower chamber of the Australian government, has approved a bill that would make it illegal to use credit cards for online gambling. This would be a comprehensive prohibition.
Outlawing credit cards in Australia
During the month of September, the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023 was presented to the legislature. This proposal seeks to prohibit the use of digital currency in addition to credit cards and other items related to credit.
The introduction of the law has resulted in a substantial amount of debate inside the parliament, and various changes have been submitted in order to modify the bill. On the other hand, these efforts were eventually unsuccessful, and the law was ultimately approved today (November 14), with backing from both of Australia's major political parties.
After this, the bill will be sent to the Senate, which is the upper chamber of parliament in Australia, for additional discussion and consideration.
Taking the credit card debt into consideration
In addition to the prohibition on loan goods, the law has a plethora of additional provisions that would be put into force.
In addition to these, operators that do not implement the restriction will be subject to significant fines. In the event that licensees in Australia fail to comply with the newly enacted laws, they may be subject to fines of up to AU$234,750 (£121,706/€139,707/US$149,722).
In the event that the bill is approved, the Australian Communications and Media Authority (ACMA) would be allocated more authority. A few examples of these are the enforcement of new and existing penalty measures, as well as the assumption of responsibility for the imposition of penalties on those who violate the ban.
The government is making preparations for a transition period that will last for a period of six months. This will provide operators, payment providers, and customers the opportunity to adjust to the new regulations. Beginning at the moment that the measure receives the royal assent, this would become operational.
During the process of draughting the amendment bill, the government held discussions with a wide range of stakeholders, including operators, advocates for harm reduction, providers of wagering and lottery services, and financial payment groups.
Adapting to the law that governs land-based activities in Australia
Casinos and other land-based establishments in Australia are prohibited from accepting credit cards as a form of payment. In light of this, the law would effectively put an end to all forms of gambling that are conducted via credit cards across the entire nation.
The argument regarding the online prohibition in Australia has been going on for a number of years, therefore it has been a matter of time until it was finally implemented.
A number of suggestions were been forward by the parliamentary joint committee on corporations and financial services in the month of November 2021. In the event that the new measure is passed and put into effect, these will definitely be put into effect.
One further thing to consider is that in December of 2019, the Australian Banking Association (ABA) held a consultation on the use of credit cards in the gaming industry. This also investigated the ways in which banks might assist in better protecting players from the risks associated with gambling.
After Great Britain initiated its own prohibition on gambling with credit cards in the spring of 2020, there was an increase in the number of people calling for the government of Australia to take action. Bet365, Betfair, and Entain are several of the companies that are members of Responsible Wagering Australia, and they have stated that they would support such a prohibition.
Certain establishments have implemented their very own ban on the use of credit cards for gambling in preparation for the impending establishment of a ban. The Bank of Australia is one of these institutions; in October 2021, the bank made the announcement that its customers may no longer use its credit cards for gambling purposes.
Additional measures to combat the negative effects of gambling
In Australia, the proposed ban on credit cards is one of a number of measures that are being implemented to address the negative effects of online gambling. A number of different measures are included in this, which is being referred to as the National Consumer Protection Framework.
Among these is BetStop, which was introduced in August and gives customers the ability to self-exclude themselves from working with any licensed interactive wagering service providers. In this context, "online" and "telephone-based" operators are both included. The number of users who have registered for the program has surpassed 10,000 since it went live.
Additionally, the government of Australia has implemented pre-verification as a statutory requirement. In order to comply with this requirement, operators are required to verify the identification of customers both when they register for an account and before they begin betting.
In addition, the government has created nationally consistent training for staff members working in the sector, and it has launched evidence-based taglines to replace the phrase "Gamble Responsibly."
