Australian banks calling for ban on credit card betting
The Australian Banking Association (ABA) is calling on the government to execute a ban on credit cards for online sports betting. This comes alongside plans to introduce a bill to that effect.
For a while now, the banking industry in Australia has been calling for government action against credit card gambling. While Australia has legislation preventing the use of credit cards and cash advances on cards in casinos, on racetracks and at TAB outlets, the same cannot be said for the multimillion-dollar online betting industry.
The disparity between legislation on credit card use for land-based gambling and online gambling is due to the law on the former being legislated in the early 2000s, before the rise of online bookmakers in Australia. Now the industry is a behemoth generating $50 billion a year.
Commenting on the situation, ABA chief executive Anna Bligh noted that the banks are campaigning for the ban not on moralistic grounds, but because leaving players to use credit cards to fund their online gambling play is bad business.
“Why should it be possible to do something in the virtual world that is prohibited in the real world?” she asked.
“Every pub with poker machines, every TAB and every trackside bookie already implemented this 23 years ago.
“This is just a product that is not suitable for credit. You can accrue a very, very large amount of debt in an incredibly short period and have nothing to show for it.
“Banks have seen the harm that is being done and they are very conscious of their responsibility as lenders to ask, ‘Is this something we should be providing credit for given what’s happening to our customers?’”
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The banks are lobbying for this because implementing a ban from their end is difficult. This is because the transaction code for online gambling is the same one used by charities that sell lottery tickets for fundraising. It gets more difficult since choosing to focus only on online gambling will mean changing the code, which can only be done internationally.
This has made the ABA throw the full weight of its support behind a proposal by Responsible Wagering Australia in 2021 to develop solutions to replace credit cards for online sports betting. RWA recently presented its solutions to the government and is putting pressure on lawmakers to implement them.
Independent MP Rebekha Sharkie intends to introduce to parliament a private member bill seeking to ban credit card gambling.
“Smartphones allow people to access interactive wagering services at any place and time and in relative privacy,” she said.
“It only takes a minute or two to gamble but, when credit is used, it can take a very long time to pay off.”
Concerning the bill, she said it will “provide greater consistency of online and telephone betting with gambling in licensed venues, casinos and TAB outlets”.
