Australia Proposes Ban on Credit Card Use for Online Gambling Transactions
New Legislation: Say Goodbye to Credit Card Gambling Online
The Australian House of Representatives has given the green light to a new bill that aims to crack down on gambling using credit cards online. Dubbed the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023, the legislation is on its way to the Australian Senate for further debate.
Anthony Albanese's Labor-led government introduced this bill in September with the objective of implementing recommendations from a 2021 inquiry by the Parliamentary Joint Committee on Corporations and Financial Services. If passed by the Senate and given royal assent by Governor-General David Hurley, this bill will put online betting and gaming sites on par with land-based venues and casinos, which have been credit card-free since 2000.
The legislation also targets digital currencies like Bitcoin, prohibiting them from being used for online gambling or sports betting. To enforce this ban, the bill increases the Australian Communications and Media Authority's powers, potentially imposing individual penalties of up to $234,750 on uncooperative financial institutions and operators.
Michelle Rowland, Australia's Communications Minister, lauded the lower house's approval of the bill, stating that it prioritizes protecting individuals from betting with money they don’t have. The law also promises to endow her department with future-proof powers to ban additional credit-related products as they emerge.
This proposed law comes on the heels of a call in August 2022 by the Australian Banking Association for a ban on credit card use in online sports betting and gambling, given the lack of regulations in an industry estimated to be valued at a minimum of $50 billion per year. Anna Bligh, the association's current CEO, has advocated for restrictions, believing it to be unwise to gamble using credit, as it can lead to substantial debt with nothing to show for it.
In line with these objectives, Social Services Minister Amanda Rishworth has highlighted the government's commitment to protecting vulnerable Australians from the harm caused by online gambling. She stated that the government has prioritized addressing the harm caused by online gambling since its election in May 2022 and views this bill as the next step in its safeguarding process.
While the Australian Senate deliberates over the bill, it is crucial to note that some search results suggest the ban on crypto casinos is already in effect. However, more details about the bill's specific provisions and its status in the Senate remain to be seen.
- If enacted in 2023, the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023, currently under consideration by the Australian Senate, will prohibit the use of digital currencies like Bitcoin for online gambling and sports betting.
- In Sydney, people may soon be required to use alternative payment methods for interactive gambling, as the bill aims to bring online betting and gaming sites in line with land-based venues and casinos, which have been credit card-free since 2000.
- The federal government, led by Anthony Albanese's Labor party, has assured its commitment to safeguarding vulnerable Australians from the potential harm of online gambling, with the new law set to further regulate the sector in the coming years.
