Australian bookmakers call for ban on credit card gambling
Sportsbet, a major online bookmaker, has expressed its support for banning the use of credit cards for gambling in Australia. This is in line with a proposal submitted by the Australian Banking Association (ABA), a lobby group representing some of the biggest banks in the country, suggesting more restrictions be put in place for operators permitting payment by credit.
About a year ago, Sportsbet — under the aegis of Responsible Wagering Australia (RWA) — declared credit cards harmful as they are not in the best interest of consumers. It continues its protest this year by writing a submission to a government inquiry into online gambling. In its submission, the betting company called credit cards a “buy now, pay later” scheme that poses a high financial risk for gamblers.
“We strongly support the Responsible Wagering Australia position that a credit card ban should be implemented in wagering, and that buy now pay later be treated as credit and similarly banned from gambling services,” Sportsbet said.
“While BNPL may be suitable and low-risk in other sectors, we firmly believe that wagering via this payment method is high-risk and should be prohibited.”
Anna Bligh, CEO of ABA, noted that while current legislation prevents online gambling operators from extending credit to their customers, it is not enough as the use of credit cards is still there. Bligh called on the government to make new laws that will prevent licensed online operators from accepting credit.
“The Act could be amended to prevent registered online gambling companies from accepting payment by credit,” she wrote.
“This would establish a consistent policy approach to the use of credit for gambling across all gambling services including in venues, on racetracks and online.”
Bligh also stated that financial institutions alone cannot effect the needed change, as blocking customer credit cards due to gambling can affect other activities including buying lottery tickets and paying to charities that sell tickets. In 2020, Bank Australia banned its customers from using credit cards for gambling-related services.
These calls for reform are coming in light of recent data concerning Australia’s annual gambling loss. According to the latest figures, Australians lose $1,276 on average to gambling every year, with problem gambling in the online space reaching 3.9% as opposed to 1.23% of the general population.
Meanwhile, Sportsbet has announced it is developing a “real-time” technology that will use artificial intelligence to place limits on a player’s gambling after observing their playing patterns. It has offered to share the technology with the rest of the industry.
