The Australian Banking Association (ABA) is seeking input from individuals working within the banking sector regarding methods to prevent the utilization of credit cards for online gambling activities. They are also interested in understanding how financial institutions can enhance the protection of individuals who engage in gambling.
The ABA states that its members are concerned about the prevalence of credit card usage for gambling, particularly among those struggling with gambling addiction.
They assert that employing credit cards for gambling can result in significant issues, as individuals can rapidly accumulate substantial debt. For those grappling with gambling addiction, credit cards can lead to substantial financial difficulties for both themselves and their families.
The ABA aims to gather feedback on five primary inquiries, commencing with the risks and challenges associated with the use of credit cards for gambling purposes.
This research project aims to evaluate if the banking sector believes that new regulations, or even a complete prohibition, should be put in place to restrict the use of credit cards for wagering, and whether this should be applied to all forms of wagering.
Additionally, the study seeks to gain a more thorough understanding of the potential ramifications of prohibiting or restricting credit card gambling, and whether a period of adjustment should be established to allow financial institutions to implement new controls.
This would expand upon the regulations enforced in the early 2000s that prohibited the use of credit cards for gambling at casinos and gaming establishments, to encompass online sports betting and lottery purchases.
Online operators have already been prohibited from offering credit lines to gamblers, a ban that was implemented in February 2018 as part of the nation’s national consumer protection framework for online gambling.
The Australian Banking Association noted that some financial institutions have already blocked the use of their credit cards for payments to gambling businesses. This is part of a series of new controls independently implemented by Australian banks, including automated message reminders to players about the higher interest rates and fees associated with credit card transactions, and voluntary blocking controls for gambling-related transactions.
However, the association is seeking to develop a set of industry-wide controls to minimize the negative impacts associated with gambling.
The association stated that this is an area where there is less industry activity.
Nevertheless, there are a few notable exceptions, such as the majority of US credit card providers declining gambling transactions, and the self-blocking tools voluntarily introduced by UK financial institutions.
On March 4, 2020, industry participants, members of the public, gambling operators, and other interested parties will have the chance to share their views.
This consultation process was initiated following the approval of legislation by the Australian Parliament on December 5 to enable the creation of a national self-exclusion registry. The Australian Communications and Media Authority (ACMA) will manage the system and has already issued a request for proposals as it searches for a technology partner to handle the solution.
This is the most recent component of the country’s online gambling national consumer protection framework, which was fully announced in December 2018.
The ACMA has already begun to utilize its authority to block access to unauthorized online gambling websites, a power granted as part of the framework. In November, internet service providers were instructed to block Emu Casino and Fair Go Casino.
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