On June 11, 2024, Australia formally implemented a federal law prohibiting using credit cards to fund accounts at Australian real money online casinos. This new regulation means Australian gamers can no longer legally deposit funds into their wagering accounts using credit cards or similar methods. The ban is outlined in the "Interactive Gambling Amendment (Credit and Other Measures) Bill 2023," introduced in September 2023.
This measure is part of Australia's efforts to address problem gambling, which has been a significant issue in the country's gaming industry. The new law updates the "2001 Interactive Gambling Act" and was agreed upon through parliamentary consensus. It represents a major step towards creating a safer online betting environment.
Background of Australian Online Casinos Credit Card Ban
One of the most significant advantages of online casinos is the variety of online casino payment methods available. These include e-wallets, PayID, credit and debit cards, direct bank transfers, mobile payment alternatives like Apple and Google Pay, coupons and prepaid cards, and even recognized cryptocurrencies.
The decision to remove credit cards from these options was debated in Australia's House of Representatives and swiftly adopted in November 2023. The bill was then sent to the Senate, where it was quickly approved. Credit cards are banned in Australian brick-and-mortar casinos, contributing to the bill's lack of opposition. The new law forbids all types of online gambling transactions using credit cards, except for lotteries and keno.
The amendment was a collaborative effort between Australian legislators and industry operators, who were given a six-month period to make the necessary changes before it was enacted into law. That window has passed, and the legal consequences are now in full force. Violators face fines of up to AU$234,750. The amendment also expands the Australian Communications and Media Authority's mandate to enforce existing and amended penalty frameworks and impose fines on gambling operators who violate the law.
The social services minister Amanda Rishworth noted in a recent interview, “Our government takes our responsibility to prevent and reduce harm from online wagering very seriously. Our prohibition on credit cards will help us achieve this goal. You cannot use your credit card to place a bet on land-based gaming. Now, the same laws apply to online gaming.”
Why the Focus on Credit Cards in Australian Online Casinos
According to a National Gambling Trends Study published in 2023, two out of every three Australian gamblers are vulnerable to problem gambling. This group accounts for 68.4% of all online gaming fans, primarily young people aged 18 to 34. The report also revealed that the average Australian gambler spent $768 on various types of online gambling, with one in every four punters primarily relying on credit cards to place bets. The New South Wales (NSW) Office of Responsible Gambling emphasized the need to address this troubling trend as more Australian punters fall into credit card debt.
Credit cards provide unrestricted access to gambling funds, allowing users to lose control, especially when chasing losses easily. This can lead to a debt trap that grows if not managed. Credit cards also impose high interest rates, particularly if debtors fail to make timely payments. Additionally, credit cards are a prime target for online fraudsters who exploit online casino security flaws to steal customers' personal information. These issues harm credit ratings and create a ripple effect that negatively impacts players' lives. All these factors detract from the enjoyment and integrity of gambling.
Credit Card Ban Part of Australia's Responsible Gambling Strategy
Australia has been determined to combat gambling harm and develop a sustainable gaming environment for some time now. Some remedies have proven ineffectual, necessitating stronger measures through comprehensive policy reforms. Similar initiatives to the credit card prohibition include BetStop, a government-run self-exclusion register. It is a strategic tool that encourages responsible gambling by allowing Australian gamers to deliberately opt out of active online gambling or any industry-related activities, such as promotional messaging from licensed Australian operators.
The register was introduced in 2023, and over 22,000 Australian gamers have already signed up. Another critical step is mandatory pre-verification, which requires all licensed operators to validate their clients' identities before allowing them to gamble. Additionally, the operator must present all clients' monthly statements showing their gambling activities, encouraging players to self-regulate.
Adapting to Changes in Australian Online Gambling
Credit card restrictions are another crucial step toward creating Australia's sustainable online gambling ecosystem. Despite concerns about significant changes and potential disruptions to the local gambling industry, these reforms equip Australian gamers with the tools to enjoy online gambling responsibly in the long term, ultimately benefiting everybody involved.
