Australian Banks Welcome Federal Credit Card Ban for Online Gambling
The Australian Banking Association (ABA) has welcomed the passage of the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023, set to ban credit cards for online gambling nationwide. Passed on 7 December 2023, the legislation closes a long-standing loophole where credit cards remained usable for digital wagering despite bans in physical venues like hotels, clubs, casinos, and TAB outlets since the early 2000s. ABA CEO Anna Bligh highlighted the move’s role in strengthening consumer protections against debt traps. The changes equip the Australian Communications and Media Authority with enhanced enforcement powers, marking a significant step for the gambling industry.
Legislation Closes Critical Loophole in Gambling Payments
The new laws make it illegal for online gambling companies to accept credit cards, credit-related products, and digital currencies as payment methods for interactive wagering services. This brings online gambling into line with state and territory restrictions introduced in the early 2000s, which already prohibited credit card use at physical betting counters in pubs, TAB outlets, hotels, clubs, and casinos.
ABA CEO Anna Bligh described the prior situation as ‘absurd,’ noting that punters could not use credit cards at a TAB counter but could still gamble via betting apps on their phones at the same location. ‘These new laws will overturn [this] reality,’ she stated, emphasising the ABA’s long advocacy for payment consistency across the gambling sector.
Enhanced Protections and Enforcement Powers
Bligh underscored the risks of credit card gambling, warning that it ‘can lead very quickly to a very serious debt trap for consumers and this debt cycle can be extremely difficult to break.’ With online gambling experiencing rapid growth, closing this loophole is seen as imperative for consumer welfare. The ABA congratulated the Federal Government for addressing the issue.
The amendments introduce a new criminal offence and civil penalty provisions related to the ban. The Australian Communications and Media Authority (ACMA) gains enhanced powers to enforce the credit card prohibition alongside existing offences under the Interactive Gambling Act 2001.
Strong Public and Industry Support for Restrictions
A 2020 ABA-commissioned survey revealed widespread public backing, with 81% of respondents favouring restrictions on credit cards for gambling and 54% supporting a total ban. Bank customer actions further demonstrate demand: data from January 2023 across the four major banks and Bendigo & Adelaide Bank showed over 775,000 debit and credit cards with gambling blocks activated by users.
Bligh noted that ‘these changes cannot come soon enough,’ reflecting years of banking sector pressure to align online practices with physical venue rules and mitigate gambling-related financial harm.
| Key Measure | Details | Impact |
|---|---|---|
| Credit Card Ban | Prohibits acceptance by online gambling companies | Aligns online with in-person venue rules from early 2000s |
| Additional Prohibitions | Credit-related products and digital currency | For interactive wagering services |
| New Offences | Criminal offence and civil penalty provision | Enforceable by ACMA |
| Public Support | 81% favour restrictions; 54% want total ban (2020 survey) | ABA-commissioned data |
| Bank Blocks | Over 775,000 cards blocked (Jan 2023) | Four major banks plus Bendigo & Adelaide Bank |
