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
Australian banks strongly support the RBA’s proposed ban on debit and credit card surcharges, while overwhelmingly calling for an alternative pathway forward on interchange fees. The ABA has made the following calls in a submission to the RBA’s current consultation on the Review of Merchant Card Payment Costs and Surcharging: ABA CEO Simon Birmingham said… Read more »
Australia’s banks welcome the passing through the Senate of new legislation to ensure payments laws are up-to-date and reflect today’s digital economy. The new laws will bring digital wallets, cash distribution services, buy now, pay later schemes and other emerging payment methods within regulatory oversight, significantly enhancing protections for customers. ABA CEO Simon Birmingham said… Read more »
The ABA welcomes the passage through the House of critical legislation to ensure Australia’s payments regulatory framework is brought up-to-date and urges the Senate to quickly pass this overdue legislation too. The proposed legislation will bring digital wallets, cash distribution services, buy now, pay later schemes and other emerging payment methods within regulatory oversight, significantly… Read more »