Legislative initiatives to limit gambling cards
Article text
Context
The issue of using credit cards for gambling in Australia has become the subject of active legislative initiatives. The reason is the high risk of debt, the increase in the number of players with problematic behavior and social consequences. Similar measures are already in place in the UK and a number of other countries, and Australia is moving in the same direction.
Legislative framework and initiatives
1. Interactive Gambling Act (IGA).
Basic federal act regulating online gambling. Amendments to it are considered in the context of limiting payment methods, including a complete ban on credit cards.
2. Gambling and Betting Commission (ACMA).
The regulator supports the initiative: credit cards increase access to borrowed funds and increase the risks of dependence.
3. National Gambling Harm Reduction Strategy.
Provides for measures to limit credit financing of bets, strengthening the identification of players and transparency of transactions.
4. Draft laws in Parliament.
Banning credit cards for online betting. Proposal to oblige operators to block payment of MCC 7995 when using credit cards.
Penalties for operators. For accepting a deposit from a credit card - significant sanctions (for individuals and legal entities).
Mandatory interaction with banks and payment systems. Banks must technically provide locks.
The role of banks and payment systems
Banks of Australia (ANZ, NAB, CBA, Westpac). Some of them have already introduced voluntary restrictions on paying for gambling with credit cards.
Visa и Mastercard. We are ready to support the blocking of MCC codes if the law comes into force.
Fintechs. Some non-emigrate MCC 7995 transactions to avoid social risks.
Pros and cons
For the ban:
Against:
Impact on players
Reduction of debt burden risk. Credit cards are the most dangerous source of financing rates.
Focus on debit cards and PayID. Players will only have to use their own funds.
Limiting "instant access" to borrowed money. This will allow players to make decisions longer and play less in a state of affect.
Comparison with other countries
Great Britain. Complete ban on credit cards for online and offline gambling from April 2020.
USA. State-level regulation, most banks block MCC 7995.
Canada. Restrictions depend on the province, in a number of regions there are strict bans.
Prospects
It is highly likely that in the coming years, Australia will completely ban the use of credit cards for online gambling.
Banks and operators are preparing to introduce mandatory locks.
The main vector of legislation is consumer protection and minimization of social risks.
Resume Summary
Australian legislative initiatives aim to eliminate credit cards from ways of paying for gambling, which should reduce debt and reduce the number of problem gamblers. For the industry, this means a restructuring of payment processes, and for players, a transition exclusively to deposits from their own funds.
Context
The issue of using credit cards for gambling in Australia has become the subject of active legislative initiatives. The reason is the high risk of debt, the increase in the number of players with problematic behavior and social consequences. Similar measures are already in place in the UK and a number of other countries, and Australia is moving in the same direction.
Legislative framework and initiatives
1. Interactive Gambling Act (IGA).
Basic federal act regulating online gambling. Amendments to it are considered in the context of limiting payment methods, including a complete ban on credit cards.
2. Gambling and Betting Commission (ACMA).
The regulator supports the initiative: credit cards increase access to borrowed funds and increase the risks of dependence.
3. National Gambling Harm Reduction Strategy.
Provides for measures to limit credit financing of bets, strengthening the identification of players and transparency of transactions.
4. Draft laws in Parliament.
Banning credit cards for online betting. Proposal to oblige operators to block payment of MCC 7995 when using credit cards.
Penalties for operators. For accepting a deposit from a credit card - significant sanctions (for individuals and legal entities).
Mandatory interaction with banks and payment systems. Banks must technically provide locks.
The role of banks and payment systems
Banks of Australia (ANZ, NAB, CBA, Westpac). Some of them have already introduced voluntary restrictions on paying for gambling with credit cards.
Visa и Mastercard. We are ready to support the blocking of MCC codes if the law comes into force.
Fintechs. Some non-emigrate MCC 7995 transactions to avoid social risks.
Pros and cons
For the ban:
- Protecting vulnerable players from debt.
- Decrease in spontaneous deposits.
- Consistency with international practice.
- Building trust in market regulation.
Against:
- Players can look for workarounds (cryptocurrencies, foreign services).
- Potential decline in operator profits and tax revenues.
- Complication of the work of law-abiding operators, the need to modernize payment gateways.
Impact on players
Reduction of debt burden risk. Credit cards are the most dangerous source of financing rates.
Focus on debit cards and PayID. Players will only have to use their own funds.
Limiting "instant access" to borrowed money. This will allow players to make decisions longer and play less in a state of affect.
Comparison with other countries
Great Britain. Complete ban on credit cards for online and offline gambling from April 2020.
USA. State-level regulation, most banks block MCC 7995.
Canada. Restrictions depend on the province, in a number of regions there are strict bans.
Prospects
It is highly likely that in the coming years, Australia will completely ban the use of credit cards for online gambling.
Banks and operators are preparing to introduce mandatory locks.
The main vector of legislation is consumer protection and minimization of social risks.
Resume Summary
Australian legislative initiatives aim to eliminate credit cards from ways of paying for gambling, which should reduce debt and reduce the number of problem gamblers. For the industry, this means a restructuring of payment processes, and for players, a transition exclusively to deposits from their own funds.
