The Australian government is implementing stricter regulations on internet gambling by prohibiting the use of credit cards. This measure is considered essential to safeguard at-risk individuals, as using credit cards for gambling activities is already prohibited in physical casinos and gaming establishments.
The authorities aim to harmonize online gambling regulations with existing safeguards. They contend that individuals should not engage in gambling with funds they do not possess. The prohibition is expected to be enforced by blocking transactions that utilize credit card BINs (Bank Identification Numbers), a system effectively employed in Australian casinos and the UK for comparable objectives.
This action follows a 2021 study that disclosed approximately 20% of deposits into online gambling accounts were made through credit cards.
In the course of the inquiry, Tabcorp acknowledged that nearly 14% of total payments in 2021 originated from credit cards. This constitutes a significant issue, as numerous individuals grappling with gambling dependence finance their compulsion through credit, accumulating unmanageable debt. Carol Bennett, representing the Gambling Reform Alliance, expressed approval for the suggested prohibition on credit card wagering, deeming it a “crucial measure in mitigating the detrimental effects associated with internet gambling.”
