Parliament considers banning credit cards for online gambling

Financial Review
Parliament considers banning credit cards for online gambling
Wild Casino

“Around $25 billion is spent on gambling each year. About six Sunshine Coast University hospitals could be built every year.”

Banks such as Citibank, Suncorp, and Macquarie have all made the decision to ban credit cards for gambling, he told the Parliament.

But the big four banks are still mulling the proposition.

The committee will examine a range of other issues including: the extent of consumer detriment of using credit cards to gamble online; the level of existing voluntary bans by Australian financial institutions; existing consumer protections; the potential for a mandatory industry code; and regulatory approaches used in other relevant jurisdictions. It will consider amending clause 15C of the Interactive Gambling Amendment Act 2017 to actively ban credit card bets.

Submissions to the committee close on June 25.

The financial services inquiry comes at the same time as independent senator Sterling Griff’s proposed bill to outlaw the use of credit cards for online gambling.

The bill, proposed in the Senate last August, was inspired by Britain’s ban, which makes it illegal to accept, facilitate or promote credit card payment for online gambling. A separate Senate committee has been set up to examine that legalisation. It will report back by July 30.

A report by the Australian Banking Association last December pointed to the results of a consultation process on the use of credit cards for gambling. A survey conducted for the report found 81 per cent of people believed gambling on credit cards should be restricted or banned.

Buy now, pay later services are not available to be used in online or physical gaming under the buy now, pay later code of practice, which was developed by the Australian Finance Industry Association.

The code, which came into force on March 1, says buy now, pay later platforms will not be allowed to be used “to purchase goods or services that have legal and regulatory restrictions on finance being provided for them, for example, gambling and illegal weapons”.