The Government of Australia has introduced legislation to ban the use of credit cards and digital currencies in online gambling.
The ban on the use of digital currencies, credit cards and related products with online betting providers in Australia has been under consideration for a number of years and was introduced in parliament today through The Interactive Gambling Amendment (Credit and Other Measures) Bill 2023.
The Bill aims to expand the Australian Communications and Media Authority’s (ACMA) powers to ensure effective enforcement of the new and existing civil penalty provisions under the Act, including penalties of up to AUD$234,750 for any breach of the new provisions.
“It’s as simple as this: people should not be betting with money they do not have,” said Michelle Rowland MP, minister for communications. “Legislating a ban on the use of credit cards for online gambling will help to protect vulnerable Australians and their loved ones.
“I would like to thank the wide variety of stakeholders, including harm reduction advocates, wagering and lottery providers, and banking payment organisations, for their contributions to and support for this Bill.”
The Bill will come into force six months after receiving Royal Assent, giving consumers and operators time to adjust their betting and business practices to the new rules.
The introduction of the Bill was welcomed by Financial Counselling Australia (FCA), the national body of the financial counselling profession.
“This legislation is terrific,” said Lauren Levin, director of policy and campaigns at FCA. “We’re delighted that it covers not only credit cards, but also digital wallets and digital currencies.
“Digital currencies can have wild fluctuations in value, so not only do people speculate on their bets, but also on the movement in the digital currency. It’s great news that the Government is acting early on this. It’s also good to see the Government has future-proofed the legislation with the facility to add new loopholes to the ban.”
One area of criticism is the Bill’s carveout for online lotteries, which has created “an online lottery advertising blitz”, according to Levin.
“Online lotteries are not a simple scratch ticket. Some, like Kino Go, advertise draws every three minutes, and there are some products on the Lott website where you can easily spend $10,000 on credit,” she said. “Online lotteries have changed the whole situation, as the danger of losing large sums is now just as high as someone gambling on online sports betting. There is no good reason for online lotteries to allow people to buy a $10,000 ticket on credit, or for people to enter a $3,000 syndicate on credit. Gambling is gambling.”
“That loophole has to be closed,” argues Levin, who wants to see another parliamentary inquiry focusing just on lotteries.
Gambling on credit in retail venues is already prohibited in Australia, and the government is committed to introducing future reforms to further reduce the risk of harm from online gambling.