Australia BANS Credit Cards + Cryptos For Online Gambling
On Dec. 6, 2023, the Senate of Australia announced that it had adopted a new law banning credit card use for the purposes of gambling online. This new measure, called the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023, had been in the works since September, but it has now been approved by both the Senate and the House of Representatives and will become law after a six-month transition period.
Why Ban Credit Card Use?
When it comes to the decision to ban credit card use for gambling, it really boils down to potential problem gambling and gambling addiction. Australia believes that players who need to gamble on credit, or using loaned funds, may be at risk of gambling addiction.
Of course, this kind of thinking is questionable as using a credit card to gamble may simply come down to convenience or availability. Just because a player uses a credit card for gambling does not necessarily mean they are gambling beyond their means or cannot afford to gamble.
Despite our opinion that this may be a bit of an overreaction from the Australian Government, Australia has a long history of trying to protect consumers from the potential risks and harms that may come from gambling and gambling addiction. Online gambling has long been an issue and a point of contention with the Australian Communications and Media Authority frequently banning sites, like when the ACMA banned two more supposedly illegal gambling sites in October.
Impact of this Credit Card Ban
It has yet to be seen what the exact ramifications of this policy change will be, but it seems likely to significantly hinder people's ability to easily deposit or gamble online. Credit cards are often the simplest way to deposit, so for players who may not be especially technologically savvy, depositing may become significantly more time-consuming and difficult.
Cryptocurrencies like Bitcoin are largely the best option for gambling deposits and withdrawals online at the moment. The new policy does mention that transactions involving “digital currencies” will also be prohibited. So not only the most convenient but also probably the second-most convenient form of funding online gaming will also become unavailable to consumers.
Another key provision of this new law is concerning potential penalties that can be levied against operators if they fail to follow the new rules. Operators may be fined up to $234,750 if they fail to comply.
Curiously, it's likely that only licensed internet gambling providers, like the sportsbooks authorized to operate in Australia by the Northern Territory, will be affected. Offshore casino and online poker sites are already considered illegal by the ACMA and are thus subject to persecution from the authorities, so this new measure is unlikely to impede them any more than they are currently being inconvenienced by the legal regime in Australia.
Keno and Lottery Carveouts
Only two types of gambling are exempt from the provisions of the bill: keno and lotteries. Lotteries especially are notorious for being the most popular type of wagering in Australia, and they're especially popular among people with low levels of income. Thus, the stated consumer protection rationales for implementing the legislation seem to be mere smoke and mirrors. Some are concerned that big corporate lottery interests may be behind this carveout.
Even Responsible Wagering Australia (RWA), a major supporter of the bill, had its concerns with lotteries not being included. The CEO of the RWA, Kai Cantwell, commented, “It is disappointing to see that lotteries and keno (a form of lottery played in casinos) have been exempted from the ban.”
Background Info and Parliamentary History
This ban on credit cards for internet gaming has been in the works for a while now. With many state regulations in effect that prohibit using credit cards at brick-and-mortar gambling establishments, major stakeholders in 2021 began to seriously contemplate adopting similar rules regarding online gambling. The government indicated in March 2023 that it was working on a solution, which duly arrived in the form of the Interactive Gambling Amendment (Credit and Other Measures) Bill.
This legislation amends the Gambling Act 2001. This Act has already been amended before notably with the Interactive Gambling Amendment 2016. This amendment outlawed online poker and casino sites, at least theoretically, although many providers found ways of circumventing it.
Movement Through Parliament
The bill was introduced in the House of Representatives on Sept. 13. After passing through several readings and debates over the months, the law was passed by the House on Nov. 14. It then proceeded to the Senate where it was introduced the following day and passed on Dec. 6.
King Charles to Sign Bill Into Law
Despite Australia being independent from the United Kingdom, King Charles is also the King of Australia entirely separately from his role as the King of England. He must therefore grant royal assent to the bill although this responsibility is almost always delegated to the Governor-General of Australia. The current Governor General is David Hurley. Royal assent is generally granted 7 to 10 days after passage.
The new law will not go into effect immediately however. The Australian Government has set a six-month transition period, which starts when the Governor-General signs the bill, before the new law will become active. This time will give customers, operators, and payment providers a chance to get used to the new rules and make necessary adjustments.
King Charles Will Assent to the Bill Almost Certainly Through His Representative, the Governor-GeneralOnline Gambling Still Safe and Readily Available in Australia
Despite the new policy changes regarding credit cards and a somewhat restrictive regulatory stranglehold regarding gambling in Australia, there are still safe, reliable, and honest gambling websites available to players in Australia.
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