The legislation would likely be introduced to the federal parliament later this year
Labor has announced that it will introduce laws banning the use of credit cards for online gambling – a move welcomed by the Australian Banking Association (ABA).
The change will amend the Interactive Gambling Act 2001, making it illegal for betting companies to allow people to use credit cards for gambling online.
ABA CEO Anna Bligh (pictured above) said the change will bring online gambling into line with the rest of the gambling industry.
“This is a long overdue reform and it’s a credit to the relevant ministers that they’ve taken such a decisive move so early in their term,” Bligh said.
“The use of credit cards was prohibited for gambling in hotels, clubs, casinos, and TAB outlets by state and territory governments in the early 2000s but can currently still be used for online gambling.
“This has led to an absurd reality where someone cannot use a credit card at the betting counter at a TAB outlet or pub but can sit at the same outlet and gamble on a betting app using a credit card.”
Bligh said that the majority of Australians will applaud the decision. According to a survey commissioned by the association in 2020, 81% of Aussies believed there should be restrictions on using credit cards for gambling, with 54% of them stating their use should be banned altogether.
Bligh said online gambling currently accounted for the majority of all gambling and was also one of the fastest-growing forms of gambling.
“Using credit cards for gambling can create a unique harm where large amounts of debt can be accumulated in a short period,” she said. “For people with a gambling addiction, a credit card can lead to severe financial stress for the individual and their family. The online gambling credit card ban will go a long way to help people experiencing gambling harm to keep control of their finances.”
The legislation will likely be introduced to the federal parliament later this year.
Bligh said Australian banks recognised the harm caused by the use of credit cards for gambling and have introduced a range of tools to help customers manage their gambling use. Such tools include technology to track and cap gambling spending, provide real-time alerts, and initiate customer-directed blocks. Some banks were also offering low or no-interest credit card products that can’t be used for gambling transactions.
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