5 December 2019
Today the Australian Banking Association has released a consultation paper on the use of credit cards for gambling.
Banks have introduced a range of initiatives to help customers better manage their financial arrangements and mitigate harms related to problem gambling – technology solutions such as tools to help customers track their spending, customer directed blocks, trained customer support teams, referrals to support services.
The ABA is seeking views from the public on the place of a credit card and its use for gambling. Currently credit cards can be used when gambling online, however when in a gambling venue of a licenced venue or casino patrons cannot use credit cards or make ATM cash advance on their credit card.
CEO of the Australian Banking Association Anna Bligh said that banks had an important role to play in helping tackle the issue of problem gambling and were seeking feedback from the community.
“For many Australians gambling is a form of entertainment and recreation, however for some it can become a problem that potentially has devastating consequence for the individual and their family,” Ms Bligh said.
“As an industry we are currently assessing a number of options to help tackle problem gambling.
“We are seeking feedback across the community on a number of important questions, which will then help banks as they each consider further reform on this issue,” she said.
The ABA is seeking community views on the following questions:
- What are the risks and concerns associated with gambling with credit cards?
- Should the use of credit cards for gambling be restricted or prohibited?
- If so, should the restriction or prohibition apply to all forms of gambling?
- What are the potential consequences of prohibiting or restricting the use of credit cards for gambling?
- Should there be a transition period if banks choose to implement changes relating to credit cards?
For a copy of the consultation paper click here. Submissions on the topic are due by March 4, 2020. Submissions can be emailed to [email protected]. The ABA requests that submissions make use of empirical evidence as far as possible. A survey option is also available on the ABA website here.
ENDS
Contact: Rory Grant 0475 741 007
Where credit cards can be used for gambling
| Current state (based on current regulatory requirements) | |
| Online and betting apps (facilitated by Tabcorp and Responsible Wagering Australia members) | Credit cards – Yes In February 2018 the Federal Government prohibited online gambling operators from offering credit to gamblers as part of the National Consumer Protection Framework for Online Wagering |
| Poker machines (in clubs and licensed venues) | No credit cards or access to cash advances through ATMS in gambling areas (see appendix 1 for details) |
| Casinos | No |
| High roller rooms in casinos | Casinos extend lines of credit from their own credit facilities to their customers in VIP rooms, but they do not provide credit cards in those areas |
| On-track – horse racing and greyhound racing | No credit cards or access to cash advances through ATMS in venue |
| Lottery tickets/online and in-venue | Credit cards – Yes |
| TAB outlets | Credit cards – No |
Latest news
The ABA welcomes the release of the Council of Financial Regulators’ (CFR) reviewinto small and medium-sized banks. ABA CEO Anna Bligh said the review findings and recommendations would helpensure there is a more level playing field for Australia’s small and mid-tier banks. “This is an important step forward in ensuring Australia maintains a strong andcompetitive… Read more »
EO&E Nadia: Banks has been a big topic of discussion on the show this week because, of course, we’ve just been talking about behavioural security that the bank is bringing in. Earlier, I was telling you during the week that older women can’t get a credit card in their own name. They’re secondary card holders… Read more »
The Productivity Commission proposal to tax business cash flow is an experimental change that hasn’t been tried anywhere else in the world. This tax increase risks putting more pressure on all Australians still struggling under cost-of-living pressures. While some businesses may benefit under this proposal, it risks all Australian consumers and businesses paying more for… Read more »