The Interactive Gambling Amendment (Credit and Other Measures) Bill 2023 was submitted in September. It aims to prohibit credit cards, credit-related products, and digital currencies in compliance with legal regulations.
The bill has sparked significant debate in the parliament, resulting in various amendments being proposed to modify it. However, these amendments were ultimately unsuccessful, and the bill was passed on 14 November with support from both major parties in Australia.
Next, the bill will proceed to the Senate, the upper house of parliament in Australia, for further deliberation.
Breaking down the credit card bill, it not only includes the ban on credit products but also incorporates several additional measures. These measures encompass imposing substantial fines on operators who fail to enforce the ban.
Under the new laws, licensees in Australia could face fines of up to AU$234,750 (£121,706/€139,707/US$149,722) for non-compliance. Additionally, if the bill is enacted, the Australian Communications and Media Authority (ACMA) would be granted new powers. These powers would involve enforcing penalty provisions, both existing and new, and issuing penalties to those who violate the ban.
The government plans for a six-month transition period to allow operators, payment providers, and consumers to align themselves with the new rules. This transition period would commence from the bill receiving royal assent.
The amendment bill was formulated through consultations with various stakeholders including operators, harm reduction advocates, wagering and lottery providers, and banking payment organizations.
In line with the existing regulations for land-based venues, Australia already has a credit card gambling ban in place. Consequently, the bill would effectively extend this ban to encompass all credit card gambling throughout the country, including online platforms.
The online ban has been a long-debated topic in Australia, with discussions persisting for several years. In November 2021, the parliamentary joint committee on corporations and financial services proposed a series of recommendations that are likely to be implemented if the new bill comes into effect.
Back in December 2019, the Australian Banking Association (ABA) conducted a consultation on credit cards in gambling with a focus on how banks can contribute to better protection against gambling-related harm.
The call for action by the Australian government gained momentum in spring 2020 when Great Britain introduced its own ban on credit card gambling. Leading members of Responsible Wagering Australia, including Bet365, Betfair, and Entain, expressed their support for a similar ban.
Anticipating a ban, some businesses independently initiated their own prohibition on using credit cards for gambling. For instance, Bank Australia announced in October 2021 that its account holders could no longer utilize their credit cards for gambling purposes.
The proposed credit card ban forms part of a broader endeavor to address gambling-related harm in Australia. Known as the National Consumer Protection Framework, this initiative encompasses a range of measures.
One such measure is BetStop, which was introduced in August to enable consumers to self-exclude themselves from all licensed interactive wagering service providers, including online and telephone-based operators.
Since its launch, over 10,000 individuals have registered for the service.
In addition, the Australian government has implemented mandatory pre-verification, requiring operators to verify a customer’s identity during the registration process, prior to commencing betting.
Furthermore, evidence-based taglines have replaced the “Gamble Responsibly” slogan, and consistent training has been implemented for staff working in the gambling sector.
