Australia has decided to implement a total country-wide ban on credit card deposits to online gambling operators.
The ban was announced by the federal government, led by the Labor party. The decision was made to protect Australians from the potential harm caused by online gambling. The government’s stance is clear: “People should not be betting with money they do not have,” as stated by the Communications Minister, Michelle Rowland (pictured).
The legislation to implement the ban, known as the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023, was introduced in September and approved by the Australian Senate in December. The ban is set to come into effect within six months.
Australia’s decision to ban credit card deposits for online gambling comes at a time when the country’s regulatory regime for online gambling is under scrutiny. The online gambling industry in Australia is regulated by the Interactive Gambling Act (IGA), which sets the rules for gambling companies and casinos. However, critics argue that Australia is lagging behind Europe and other parts of the world in regulating online wagering.
Despite the criticism, the Australian government has been making strides in addressing the issue. For instance, Labor has announced BetStop – a self-exclusion service – as well as banning the use of credit cards for online gambling and a new classification for games with loot boxes to be M15+ at a minimum.
For comparison, in the United States there are yet no regulations regarding credit card gambling so players are allowed to use credit cards to deposit money to sportsbooks and online casinos. United Kingdom was the first country to ban credit card deposits, in 2020.
The Australian government’s plan is to use the same system rolled out in Australian casinos to prevent credit card withdrawals from ATMs. This system uses Bank Identification Numbers (BINs) to identify and block credit card payments. This method has been successfully deployed by Australian casinos and poker machine venues, and was used in the United Kingdom to implement its credit card ban for online gambling.
The ban was one of the recommendations from a 2021 parliamentary committee inquiry that looked at the regulation of credit cards and digital wallets being used for online gambling. The report acknowledged that while the proportion of people using credit cards for online gambling might be low, the harm caused could be “significant and life changing” as people willingly create a gambling debt in hope of winning.
Interestingly, the industry peak body for online wagering, Responsible Wagering Australia, now supports the ban, and Tabcorp did not oppose a ban on the use of credit for online gambling. Lottery services will be excluded from the ban, as the government says they present a low risk of gambling harm.
Minister for Communications Michelle Rowland and Minister for Social Services Amanda Rishworth said the move was in line with community expectations. They pointed to a 2019 survey commissioned by the Australian Banking Association which found 81 per cent of those surveyed agreed credit cards should be restricted or banned in some way.
The ban is a significant step towards minimizing the harm caused by online gambling. It brings online wagering into line with land-based gambling, where credit cards cannot be used. This is a positive step towards protecting Australians from problem gambling.
In conclusion, the ban on credit card use in online gambling is a bold move by the Australian government. It’s a testament to their commitment to safeguarding their citizens from the potential pitfalls of online gambling. It will be interesting to see the impact of this legislation and whether other countries will follow suit, especially if the US market will catch up with this trend in player protection.
In the United Kingdom, the Gambling Commission announced a ban on gambling businesses allowing consumers in Great Britain to use credit cards to gamble. The ban came into effect on 14 April 2020. This decision was made in response to evidence that some gamblers with high levels of debt were using credit cards to facilitate their gambling behavior. The ban was intended to introduce friction to the process of gambling with borrowed money.
As for the United States, the ability to use a credit card for gambling depends on several factors, including the gambling venue, the state you’re in, the bank that issues your credit card, and the payment network that your credit card operates on.
In New York, the largest regulated sportsbook market in the US, sports bettors are allowed to use credit cards to deposit money into regulated sportsbooks. This decision was made as part of the state’s move to allow mobile sports betting. The New York State Gaming Commission (NYSGC) has set out guidelines for this in their mobile sports betting FAQ.
However, it’s not a free-for-all. Credit card advances and other funds used for sports betting are kept within prescribed limits. Account holders who hit a $2,500 annual lifetime deposit threshold will trigger responsible gambling measures under state law. If a mobile sports bettor deposits $2,499.00 across multiple operator accounts to avoid the $2,500.00 threshold, the sportsbook operator is required to flag that behavior.
Iowa’s rules state that bettors cannot use credit cards as a payment method, and Caesars Sportsbook has been fined $60,000 for accepting 485 credit card deposits totaling $212,000 in 2021.
In 2021, Republic of Ireland also issued a blanket ban on credit card deposits after identifying it as one of the ways in which problem gamblers gamble on debt.
Despite the convenience, using a credit card to advance funds into a sports betting account is generally considered unwise. Also, credit card issuers themselves may prohibit the use of credit cards, and sometimes debit cards, for gambling, even in states where regulators allow credit and debit cards in gambling transactions.
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Daniel Horvat 
December 11, 2023 
