The use of credit cards for gambling

The Australian Banking Association has released a consultation paper on the use of credit cards for gambling.

The ABA is considering what good practices can be adopted to minimise harms from gambling.

Currently credit cards can be used when gambling online, however, when in a gambling venue of a licensed venue or casino patrons cannot use credit cards or make ATM cash advances on their credit card.

Banks have introduced a range of initiatives to help customers better manage their financial arrangements and mitigate harms related to problem gambling.

Some banks and financial instructions have restrictions on the use of credit e.g. caps when a certain credit limit is reached, caps on cash advance amounts (which includes gambling transactions) and bans on the use of credit cards for gambling transactions (blocks on gambling merchant codes). These decisions are made by individual banks.

Regulation in this area is mainly State-based. The Consultation Paper sets out State Governments’ restrictions on credit for gambling and cash advances on credit cards in casinos, on racetracks and gambling areas of licensed venues (Appendix 1). Gamblers can still use most credit cards for online gambling, betting apps and purchasing lottery tickets. (Appendix 2)

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.

On 27 November 2019, the Federal Minister for Minister for Communications introduced legislation to establish the National Online Gambling Self-Exclusion Register.

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