Australian Regulation: Implementation of credit card gambling prohibition in banking sector
On June 11, 2024, Australia enacted a prohibition on employing credit cards for gambling activities. This sanction was sanctioned in November 2023 through an alteration to Australia's gambling regulations, known as the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023.
This restriction applies to both digital gambling and brick-and-mortar casinos
The initial restriction was instituted in September 2023, as part of the Interactive Gambling Amendment Bill 2023. According to an article published by the gambling news portal iGB, this legislation modification affects both internet casinos and betting companies, as well as brick-and-mortar casinos within Australia.
However, Australian lotteries and Keno are exempt from this credit card restriction. Wagers for these types of gambling can still be financed using borrowed money through a credit card.
The six-month phase-in period has concluded
To implement the credit card restriction, gambling establishments were granted a six-month adaptive period. Authorized establishments now incur substantial penalties of up to 144,025 euros if they persist in permitting clients to make transactions using credit cards.
The Australian Communications and Media Authority (ACMA) has also been granted augmented authority to enforce new and existing penalties through this law change. Australia's Minister for Social Services, Amanda Rishworth, commented on this:
Our government is dedicated to preventing and decreasing harm from online gambling. [...] Our credit card restriction will contribute to this objective. It is now illegal to use a credit card to place a wager at land-based gambling venues. The same regulations now apply to online gambling.– Amanda Rishworth, Minister for Social Services, Australia, iGB
Online gambling with credit cards in Germany: A controversial matter
In Germany, gamblers may still utilize credit cards to make deposits at online casinos and with betting providers. Many gamblers rely on this payment method for swift transactions. However, credit card payments for online gambling are a contentious issue and a subject of heated debate in Germany.
Addiction specialists point to an increased risk of debt as a significant criticism. There's a danger of overspending and developing problematic gambling habits, as substantial sums can be deposited onto the player's account in a short period. Although many problem gamblers are conscious that they are using borrowed money, they may believe they can win large sums and avoid potential debt. The risk of sinking deeper into debt is often ignored.
On the contrary, utilizing a credit card for online gambling payments has been banned in the UK since April 2020 in an effort to prevent potential overspending and gambling harm.
It brings up the question of why credit card payments are still permitted in Germany despite strict gambling regulations and a restrictive gaming offer. One might speculate that if a credit card restriction were implemented, German players could switch to unlicensed providers that still permit credit card payments and offer a wide array of online gambling options.
Despite Australia's ban on using credit cards for gambling activities, online casinos in Germany continue to accept credit card payments for deposits. This has sparked debates among addiction specialists who argue that this payment method increases the risk of debt and potential overspending.
Contrary to Germany's scenario, the UK implemented a credit card ban for online gambling payments in April 2020 to prevent potential overspending and gambling harm.
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