Credit cards are set to be banned from online gambling in a legislative amendment to be introduced later this year.
Australian licensed gambling services will come into line with land-based gambling which already have bans on credit cards in place.
Minister for Communications Michelle Rowland and Minister for Social Services Amanda Rishworth jointly announced the ban on Friday.
“Here the message is simple. People should not be betting with money they don’t have,” Ms Rowland said.
“We know that 15-20 per cent of online wagering is currently done with credit cards and at the same time we know that it’s that cohort which is the most susceptible, the most vulnerable to greater harms that arise from gambling.”
Strong support has been shown for the removal of credit cards for online gambling, with more than 80 per cent of Australians suggesting gambling should be restricted or banned in a survey by the Australian Banking Association.
Legislation to amend the Interactive Gambling Act 2001 will be introduced later in the year with the Australian Communications and Media Authority to be given enhanced powers to enforce the ban.
Ms Rishworth said government action was important in minimising harm caused by online gambling.
“Importantly, minimising this harm is not a set and forget exercise. Bringing online wagering into line with land‑based gambling, where credit cards cannot be used, is another positive step,” she said.
“Our Government is committed to taking action in this space.
“We’ve implemented new taglines, we’re introducing BetStop and now with this latest measure we’re taking further action to help Australians who are vulnerable to harmful online wagering.”
BetStop is set to be launched in the coming months which will act as the national self-exclusion register with wagering providers required to close all betting accounts for someone when they sign up.
Consultation will commence shortly on legislation, according to Ms Rowland and Ms Rishworth.
“The Government will shortly consult with stakeholders on draft legislation and the technical implementation of the ban, which will see Bank Identification Numbers (BINs) used to identify and block credit card payments,” a media release read.
An inquiry into online gambling and its impacts on people who have been affected is currently ongoing from the House of Representatives Standing Committee on Social Policy and Legal Affairs.
The New South Wales government announced in February plans for a full rollout to enable cashless gaming by the end of 2028 to “take real action against money laundering and problem gambling.”
According to data reaffirmed by the federal government’s announcement, Australia has the highest gambling losses per adult, with a total of $25 billion in losses per year.