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Australia Moves to Ban Credit Card Use in Online Gambling

After months of speculation, the Australian House of Representatives has passed a bill to introduce a complete ban on players using credit cards for online gambling.

Let’s explore the legislation, what it means for consumers and operators, and how it ties in with other government initiatives designed to reduce gambling harm in Australia.

Overview of the Legislation

The Australian House of Representatives has officially passed the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023.

The bill aims to impose a blanket ban on players using credit cards for online wagering, bringing online wagering into line with land-based casinos in Australia.

Full Details of the Bill

The bill will not only target credit cards but also include credit-related products and digital currencies used for online gambling. The details of the bill have sparked significant debate in recent months but has received bipartisan support.

It also includes a raft of other measures designed to help protect vulnerable Australians, including giving new powers to the Australian Communications and Media Authority (ACMA).

AMCA would be granted enforcement rights to introduce new and amend existing penalty provisions and be responsible for issuing penalties to anyone caught breaching the ban.

The bill will now move to the Senate for further discussion.

Penalties, Enforcement and Transition Periods

The new bill includes heavy fines for operators not enforcing the ban on credit cards. Any licensees in Australia failing to comply with the ban could face fines of up to $234,750. ACMA will be responsible for enforcing the ban and issuing all penalties.

A six-month transition period is set to be introduced by the government to allow players, payment providers and operators to adopt the new regulations.

This six-month period would be effective from the date the Bill secures royal assent.

Background and Context of the New Credit Card Ban For Online Gambling

The ban on credit cards for online gambling has been discussed for many years, particularly given that land-based casino venues were banned from accepting credit cards for gambling back in 2001.

During initial discussions of the ban, the government consulted with various stakeholders to form the amendment bill. This included banking payment organisations, operators, responsible gambling and harm reduction advocates and wagering and lottery providers.

Similar bans are also already in place in other areas of the world, such as the UK. And some Australian businesses have already taken proactive measures, such as to block credit card payments, to help better support responsible gambling.

Kai Cantwell, CEO of Responsible Wagering Australia, thanked the federal government for their efforts.

“Responsible Wagering Australia is pleased that the Government has listened to calls from our members to strengthen restrictions on wagering with credit. RWA looks forward to partnering with the Government to further discuss sensible, evidence-based measures that provide consumer protections to consumers, at the same time as ensuring the continued enjoyment of online wagering by Australians”, he said.

Broader Efforts to Address Gambling Harms

The blanket credit card ban on credit cards for online gambling forms part of the National Consumer Protection Framework. The framework, which has seen the introduction of various initiatives over the past five years designed to protect vulnerable Australians, includes BetStop, a free national self-exclusion register players can use to easily exclude themselves from all online and phone wagering providers licensed in Australia.

Another measure introduced recently by the federal government aimed at protecting vulnerable Australians was mandatory pre-verification of customer identities by all casino operators.

November 28, 2023
Betr Payout for NRL Grand Final an Eyewatering Sum

Australian sports betting site Betr will be forced to pay tens of millions to Aussie punters who took advantage of their 100-1 offer for Penrith Panthers to win the NRL Grand Final.

Customers have been told to expect delays in accessing their winnings, which is tipped to be the biggest payout in sports betting history in Australia.

Let’s take a look at how much the payout is, how this happened and the financial implications for online bookmaker Betr.

How Much is the Payout?

After the Panthers secured a win against the Brisbane Broncos in the Sunday night final, Betr will need to pay out a whopping $72 million to punters.

Plenty of people signed up to place a bet on Penrith Panthers, who were firm favourites to win, securing their third trophy in three years.

Perhaps realising the potential payout at stake, the company approached customers last month with another offer. Anyone who had placed a bet was offered (via text message) a chance to cash out on the bet for $500 cash.

How Did This Happen?

Around 320,000 Aussies signed up with the betting brand after announcing 100-1 offers on various sporting markets, including the NRL, AFL, Melbourne Cup and FIFA World Cup. All bets were capped at $10, with most of the money placed on the Penrith Panthers, who were firm favourites to win in the NRL decider.

Payouts in the other markets, such as the AFL Grand Final, which saw Collingwood secure victory over the Brisbane Lions, are expected to be much lower.

When Betr first launched the highly advertised launch campaign (seen in newspapers, radio and TV stations nationwide), it prompted intervention by the New South Wales regulator. They ceased the campaign but were ordered to pay out a fine of $210,000 to prevent a potentially long legal process.

Jane Lin, Liquor and Gaming NSW’s Executive Director, said the fine was appropriate given the bookmaker breached significant laws. She said the company tried to generate a new customer base with promotions that she considered crossed the line, using inducements that she felt were potentially harmful to the community.

After receiving the fine, a Betr spokesperson said the company had operated in accordance with advertising laws. However, they accepted the penalty notice to help resolve the matter ‘amicably’.

For anyone who placed a bet on the NRL Grand Final, payouts for the promotional offer are expected to be paid out by October 6. Mr Tripp said the delay was caused by a processing issue rather than anything regarding cash flow. The high volume of cash-outs meant the online bookmaker needed to process payouts manually.

What’s in It For Betr?

Although the move may suggest Betr was scrambling, co-owner and founder (and Chairman of Melbourne Storm) Matt Tripp insisted that their marketing ploy did what it intended.

Before the match, he said, “If the Panthers win, nothing would make us happier. We would have tens of millions of dollars injected back into the Betr ecosystem for punters for the next six weeks, which is the most exciting time of the year, being spring carnival.”

Mr Tripp said the bookmaker will emerge in front after hedging its bets via early payouts and lay-off wagers.

“We had always anticipated it would cost us somewhere between $50 million and $80 million, depending on how the results fell,” he said. But he said the new customers’ gross profit generated for Betr alone has reached $225 million.

About Betr

Former Sportsbet and BetEasy owner Matthew Tripp founded Betr. The online betting company launched in 2022 as a venture between News Corp, Vegas-based investment firm Tekkorp Capital and BetMakers Technology Group.

The consortium is known as NTD Pty Ltd and is licenced and regulated by the NTRC. Betr offers Australian residents sports betting services in a wide range of markets.

October 5, 2023
Plans For Online Gambling Credit Card Ban On The Way

The Federal Government has announced it will ban credit card usage for online betting and gambling sites. The Interactive Gambling Amendment Bill 2023 will also include other credit-related products and digital currencies. Companies found not enforcing the new regulations are set to face significant fines.

The move comes after significant pressure from the Australian Banking Association. The association believes credit cards are unsuitable for online gambling and cause considerable harm to consumers.

Let’s explore what the ban includes when it comes into effect and what it means for online gambling in Australia.

Long Road to Credit Card Gambling Ban

There has been discussion for years regarding banning credit cards for online gambling.

In 2019, the Australian Banking Association hosted a consultation on credit cards in online gambling that also looked at how banks could help to protect online gamblers better. Not long after, in 2020, the UK successfully introduced its own credit card gambling ban.

At the time, operators including Bet365, Entain and Betfair stated they’d support a ban, along with Responsible Wagering Australia.

Some banks took matters into their own hands and introduced bans on credit cards to fund gambling independently. In October 2021, Bank Australia announced their account holders would no longer be able to use credit cards for gambling online.

“Our research shows the majority of our customers believe credit cards should not be used for gambling, and as a customer-owned bank, our customers’ opinions are a big part of our decision making,” Bank Australia said.

National Australia Bank also became the first bank in Australia to allow customers to block gambling transactions using its mobile app.

Wider Efforts to Combat Gambling Harm in Australia

The Bill, which implements recommendations from the Parliamentary Joint Committee on Corporations and Financial Services in 2021, continues the Federal Government’s work to help protect vulnerable Australians from online gambling harms.

The government recently introduced measures, such as the launch of Betstop, a national self-exclusion register, to help people exclude themselves from online gambling.

Other initiatives include monthly activity statements outlining wins and losses and new evidence-based taglines to replace ‘Gamble Responsibly’. Consistent training has also been established for staff working in the gambling industry nationally. Finally, they’re set to introduce mandatory pre-verification that requires operators to verify a customer’s identity before they can place a bet.

There is also a range of additional recommendations the government is set to review from the parliamentary inquiry that addresses the harm of online gambling. A meeting between state, territory and Commonwealth ministers will likely be held later this year.

Amanda Rishworth, Minister for Social Services, said the ban represents the final step by the government to address the harm caused by online gambling.

Why Ban Credit Cards?

In Australia, credit cards are already banned at land-based facilities and have been for several years. The Bill brings online gambling in line with this by placing a blanket ban on forms of credit card gambling.

Australian Banking Association Chief Executive Anna Bligh says the reform is well overdue.

“Using credit cards for gambling can create a unique harm where large amounts of debt can be accumulated in a short period. For people with a gambling addiction, a credit card can lead to severe financial stress for the individual and their family,” Bligh said.

Minister for Communications, Michelle Rowland, also believes the Bill is a step in the right direction.

“The Australian Government remains committed to protecting Australians from gambling harms. Legislating a ban on the use of credit cards for online gambling will help to protect vulnerable Australians and their loved ones”, she said.

When Will This Be in Effect?

Online gamblers and businesses will be given a six-month transition period to implement betting and business behaviours.

Casino operators will face fines of up to $234,750 if they fail to follow the new laws.

Any Other Important Details?

The new law also expands the powers of the Australian Communications and Media Authority (ACMA) to ban other credit-related products that may be introduced in future years.

The authority will also be responsible for penalising companies that don’t follow the ban.

September 29, 2023
Gambling Restrictions to Hurt Greyhound Racing Industry

The greyhound racing industry in New South Wales is urging members to lobby federal ministers against introducing a ban on online gambling advertising. They warn it would result in animal welfare programs closing, leading to dog suffering and essentially killing the sport in New South Wales.

Let’s explore the movement to ban advertising and some of the potential impacts on the greyhound racing industry in the state.

Movements to Ban Greyhound Racing

Back in 2017, there was a push by the state government to ban greyhound racing in NSW due to a raft of greyhound welfare concerns. At the time, then Premier Mike Baird overturned the decision three months after it passed. He promised to clean up the greyhound racing industry and improve safety and regulation.

In 2021, the NSW government provided financial support to the greyhound racing industry by investing $30 million into track safety upgrades. Critics said the investment saved expenses for the industry and helped increase their profits.

Today, the federal government is considering a multi-year plan to phase out online gambling. Several ministers are examining recommendations that call for a staged ban on gambling advertising, starting with a ban on online inducements, including rewards programs, early cashouts and multi-bets.

Greyhound Racing Industry

The NSW greyhound industry is currently thriving in NSW. Since the NSW government tried to ban the industry, prize money has almost doubled, with online gambling markets driving record income from people living in countries who have never even watched a race.

The industry attracts gamblers from overseas markets, including China and the US, where governments have banned greyhound racing. Many Sydney fixtures are featured on overseas betting sites.

NSW State Green member Abigail Boyd says, “In recent years, we have seen the NSW greyhound racing industry change race times to suit people betting in real-time overseas, regardless of the inconvenience caused to participants and race officials and the additional risks it adds from an animal welfare perspective.”

Since the push to ban greyhound racing was overturned, Greyhound Racing NSW’s overall income increased from $67 million to $121.5 million. Described by CEO Mr Macaulay as its best financial performance on record, prize money in the sport also rose from $26.4 million to $46.3 million.

Mr Macaulay says that the sport’s success in New South Wales is filtering through as an economic benefit to many regional and rural communities in New South Wales. He noted that 75% of participants lived in regional areas of NSW.

Suspected Impacts

Greyhound Racing NSW CEO Robert Macaulay said the plan would cause a 40% reduction in income, equating to a $20 million annual hit to the industry. In a letter to members, he wrote that the loss of all forms of racing in the state would significantly impact the maintenance of essential welfare and adoption programs for many dogs.

However many critics focus on the cruelty associated with the racing industry when lobbying governments. Last year in NSW, the number of dogs killed or injured surged, with last winter reportedly the worst on record since 2018. There were 939 injuries across all categories, equating to 21% of the dogs that raced over a three-month period.

Kylie Field, spokesperson for the Coalition for the Protection of Greyhounds, said the claim that greyhound dogs would suffer more if gambling advertising were banned was absurd. And that the only way to improve animal welfare is to ban greyhound racing.

Many companies involved in sports betting in Australia, including SportsBet, are campaigning against the changes. Just this year SportsBet have boosted its marketing spend by $19m in anticipation of the planned changes.

August 31, 2023
Betstop Launch Date Arrives
The Australian government has officially launched the new national self-exclusion register, known as BetStop.

The site, which will allow Australians to self-exclude from gambling for a minimum of three months to indefinitely, will include both online and phone-based operators. It comes after years of community advocacy warning against gambling harm, particularly for vulnerable Australians.

The site will be regulated by the Australian Communications and Media Authority (ACMA), which will also launch a public awareness campaign about the register.
The National Consumer Protection Framework

Plans to launch BetStop were first announced in June 2022, which is the final measure in the Federal Government’s National Consumer Protection Framework for Online Wagering. The framework consists of 10 consumer protection measures to provide tools for consumers relating to online wagering service providers.

The goal of the measures is to mitigate gambling harm from online wagering.

Some of the other measures include:
- Prohibiting lines of credit
- Discouraging payday lenders for online gambling
- Reducing customer verification periods
- Making it easier for customers to close their online gambling accounts
Kai Cantwell, CEO of Responsible Wagering Australia, said, “The implementation of BetStop means that all 10 of the National Consumer Protection Framework measures are now up and running, giving customers the power to stay in control of their own gambling behaviour”.
Australia’s Fight Against Gambling Harm

According to the latest Australian Gambling Statistics Report, Aussies spent almost $175 billion on online gambling during the 2019–20 financial year. That’s a 25% increase from the previous year and an amount that equates to just over $11,000 per capita.

For years, community groups have been advocating for a national self-exclusion register.

Lauren Levin, Director of Policy and Campaigns at Financial Counselling Australia, said, “We started advocating for this in 2015 and didn’t give up because we always knew that an online gambling self-exclusion register would help a lot of people”.

BetStop follows the introduction of a raft of other legislative reforms in Australia, including banning the use of credit cards for online gambling. Victoria has also introduced what Premier Dan Andrews has called the toughest gambling and anti-money laundering measures for gaming machines nationwide.

Other steps include implementing mandatory activity statements each month so players can easily see their wins vs. losses, and strengthening classifications of gambling-like features in video games.

The government is also set to introduce mandatory customer pre-verification by the end of September. The new rules will mean operators need to verify a customer’s identity when they register for an account before they place any bets. This replaces the existing requirements of operators to verify a customer’s identity within 72 hours.

National Self-Exclusion Register for Individuals

BetStop will mean people can self-exclude from 150 online wagering providers with just the click of a button, for an indefinite self-exclusion period.

The new self-exclusion register covers all Australian licensed interactive wagering service providers. Operators won’t be allowed to open a new account or accept any bets from individuals who have self-excluded. Wagering providers also can’t send any self-excluded individuals any advertising or marketing material.

In addition, service providers are required to promote BetStop on their websites, apps and via marketing material. Once a person has registered, interactive wagering service providers need to close all betting accounts owned by the person.

What’s Next?

Minister for Social Services Amanda Rishworth acknowledged that there was still more to be done to reduce the harm of online gambling and that the government’s approach wasn’t a “set-and-forget exercise”.

“I look forward to working with my state and territory counterparts on what comes next to continue this positive change,” she said.

Community groups and gambling harm advocates are already calling for BetStop to be extended to all forms of gambling, including casinos, pokies, and lotteries.
August 24, 2023
Victoria Bans Betting on Minors
Victoria’s gambling regulator has announced major changes affecting the rules around betting on sports where minors participate. The new changes, due to take effect in just 60 days, will see operators face severe penalties if they fail to comply.

Let’s take a look at the full details of the ban, including identifying what’s covered and individual responsibilities, along with how the changes reflect other current reforms sweeping Victoria and Australia.
Details of The Ban

The Victorian Gambling and Casino Control Commission (VGCCC) is set to introduce a betting ban on all under‑19 sports competitions in the state. The ban will include betting on individual players’ performance for anyone under 18 years, in both junior and senior sports.

The VGCCC raised concerns in letters sent to all major bodies that control sports and sports betting providers that betting on minors poses gambling‑related harm concerns and that it normalises gambling on events that involve children.

What’s Covered?

The ban is set to prohibit sports betting providers from offering bets on:
- Any sporting event where all of the participants involved are minors.
- All sporting events for under‑19s competitions.
- All open events where there are minors playing — meaning bets can be placed on teams, but not on outcomes for players in those teams who are under 18 years.
- Any outcomes where individual players are minors, e.g. first goal scored, most disposals or first wicket taken.
Responsibilities of Sporting Bodies

From 3 August, both sports governing bodies and betting operators will have only 60 days to ensure compliance with the new rules. Sports controlling bodies must amend any agreements with betting providers to ensure they stop offering any markets that involve minors. The ban is also set to apply to any sports, whether they’ve been governed by an approved sports controlling body or not.

After 60 days, the VGCCC has stated it will be an offence for any operator to offer betting on events that involve minors. They may face losing approval to run sports in Victoria or even prosecution.

Victorian Gambling and Casino Control Commission

The VGCCC is the new, independent regulator of the gambling industry in Victoria. Formed in July 2022, the group has stronger powers and is dedicated to focusing on regulating gambling to ensure integrity, safety and fairness for all.

Their focus is on cracking down on any gambling operators who don’t protect people from gambling harms, including those who act dishonestly and break the law.

VGCCC chair Fran Thorn said of the new changes, “We think minors deserve to be protected. It also raises integrity issues, with the prospect of people attempting to influence how minors might behave playing sport.”

Reflection of Other Reforms

The decision reflects other Victorian and Australia‑wide gambling reforms we’ve seen of late, including the introduction of an Australian wide register for people to self‑exclude from online gambling, and changes to electronic gaming machines.

Last month, Victorian Premier Dan Andrews announced sweeping changes aimed at reducing harm from electronic gaming machines. The reforms are still subject to final approval but include changes to ID verification, reduced load‑up limits, curfews for venues, reduced spin speed and mandatory pre‑commitment limits.

Premier Andrews said that his state’s reforms would provide the strongest gambling harm prevention in Australia.

The Royal Commission

Victorian reforms follow the 2022 Royal Commission inquiry that investigated malpractice at Melbourne’s Crown Casino. The casino was found unsuitable by the Commission to hold a licence in the state.

The findings led to the formation of the Victorian Gambling and Casino Control Commission to regulate gaming throughout Victoria. The group is set to take over the majority of the functions of the Victorian Responsible Gambling Foundation from 1 July 2024.
August 18, 2023