The Australian Banking Association (ABA) is seeking feedback from individuals within the banking sector regarding methods to curb the utilization of credit cards for online wagering. They are also interested in exploring how financial institutions can enhance the protection of individuals who engage in gambling activities.
The ABA asserts that its members are concerned about the escalating number of individuals grappling with gambling issues and resorting to credit cards to fund their gambling endeavors.
They elaborate that the use of credit cards for gambling poses a significant risk, as it can lead to the rapid accumulation of substantial debt. They emphasize that for individuals struggling with a gambling addiction, credit cards can contribute to considerable financial strain for both themselves and their families.
The ABA aims to gather input on five key areas, commencing with the hazards and challenges associated with employing credit cards for gambling.
This study seeks to ascertain whether the banking sector believes new limitations, or even a total prohibition, should be put in place on using credit cards for wagering, and if this should apply to all forms of wagering.
The study also aims to comprehend the potential outcomes of prohibiting or restricting credit card gambling, and whether banks should be given a period of adjustment to implement new controls if a ban or restriction is put in place.
This would expand on regulations put in place since the early 2000s that prohibited the use of credit cards for gambling in casinos and gaming halls to include online sports betting and lottery purchases.
Since February 2018, online operators have been forbidden from offering credit lines to gamblers as part of the country’s national consumer protection framework for online gambling.
The Australian Banking Association notes that some financial institutions have already blocked their issued credit cards from being used to make payments to gambling businesses. This is part of a series of new controls implemented independently by Australian banks, including sending automated messages to players reminding them of the higher interest rates and fees associated with credit card transactions, and offering voluntary blocks on gambling-related transactions.
However, the association is working to develop a set of industry-wide controls to minimize the negative effects associated with gambling.
The association says this is an area where there is little industry activity.
While there are a few noteworthy exceptions, such as the majority of US credit card providers declining gambling transactions, and the self-blocking tools introduced by UK financial institutions.
Individuals involved, the general public, gambling businesses, and other concerned groups will have the chance to express their opinions until March 4, 2020.
The public discussion began yesterday (December 5), on the same day that the Australian legislature approved a law making possible the creation of a national self-exclusion registry. The Australian Communications and Media Authority (ACMA) will supervise the system and has already put out a request for proposals for a technology partner to manage the system.
This is the most recent addition to the country’s national consumer protection system for online gambling, which has been steadily developing since a thorough strategy for player protection measures was announced in December 2018.
As part of this framework, the ACMA has already started using its authority to block access to unauthorized online gambling websites, with internet service providers instructed to block Emu Casino and Fair Go Casino in November of this year.
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