Assessing the Impact of Australia’s Credit Card Ban on Gambling

Limited Impact of Credit Card Restrictions on Intense Gamblers

A key reform by the Albanese government, implemented in 2024 to prohibit the use of credit cards for online betting, aimed to curb gambling problems in Australia. However, recent research by the e61 Institute suggests that this ban has made minimal difference, especially for the nation’s most dedicated gamblers.

The regulation required most bettors to use transaction accounts instead of credit cards for placing wagers. Despite this, many high-spending gamblers found alternative ways to continue betting without relying on credit facilities.

Challenges Faced by Casual Gamblers

According to the study, casual bettors have been somewhat affected; their average spending via credit cards dropped from just above $200 every two weeks to zero, while spending through transaction accounts only declined slightly to about $150 in the same period.

Nonetheless, the research highlighted existing loopholes such as cash advances on credit cards, transferring funds to digital wallets, or taking personal loans, which some gamblers used to maintain their betting habits. For most heavy gamblers, these options were unnecessary since they already had adequate funds.

Adit Maitra, a co-author of the report, remarked that the few who reduced their gambling were predominantly casual players deterred by the inconvenience of the new process. He asserted that the ban has not clearly limited borrowing specifically for gambling purposes.

Meanwhile, the peak industry body, Responsible Wagering Australia, has shown strong support for the ban but has not provided commentary on its influence on membership or financial performance. Their CEO, Kai Cantwell, emphasized the sector’s backing of the reform.

While the ban has effectively prevented the accumulation of large credit card debts, it has not decreased overall spending through debit cards. Additionally, it has not stopped credit-based gambling on lotteries or indirectly affected poker machines, which are often associated with the greatest gambling-related harms. Maitra suggested that focusing on these areas might have a more substantial effect on reducing gambling harms.

Ongoing Questions About Reform Effectiveness

The report also raised concerns about the success of other government initiatives targeting gambling issues. For instance, the BetStop self-exclusion register, intended to help problem gamblers exclude themselves from betting activities, currently has only around 30,000 active participants despite estimates that 400,000 Australians are considered high-risk gamblers.

Awareness of this program remains low, and betting companies have been slow to promote it actively. Additional requirements, like monthly activity statements for customers, have also been neglected by some operators. In one case, the Northern Territory’s regulator fined Sportsbet $313,140 for failing to send these statements to thousands of users over an extended period, although the company reported the issue and took immediate corrective measures.

Gambling specialist Lauren Levin pointed out that such findings demonstrate the necessity for stronger consumer protections. She noted that while government efforts represent initial measures, more robust actions are needed to effectively protect gambling consumers.