Australia phases out credit card transactions
The Australian government has taken a significant step towards protecting its citizens from gambling-related harm with the introduction of the Interactive Gambling Amendment Bill 2023. This new legislation, which includes a ban on gambling payments made via credit cards and cryptocurrencies, is aimed at safeguarding consumers and reducing the risks associated with problem gambling.
The ban on credit card and crypto payments for licensed interactive wagering services, such as online sports betting and casinos, is expected to come into effect on June 11, 2024. Companies that fail to comply with the new regulations may face fines of up to $157,000.
In addition to the payment ban, the Amendment also lowers the anti-money laundering (AML) customer due diligence (CDD) exemption thresholds for gambling providers from $10,000 to $5,000. This aligns with the guidelines set by the Financial Action Task Force and means that gambling operators will need to conduct more robust checks on transactions above $5,000.
Kai Cantwell, CEO of Responsible Wagering Australia (RWA), stated that the measure is intended to protect customers and their families, and will complement existing safe gambling account management. The RWA has been advocating for stricter regulations in the gambling industry for some time.
The call for a ban on credit cards in gambling grew louder after the UK imposed such a ban in spring 2020. The Australian Senate has now approved the legislation, following a series of discussions and meetings, including one held by the Australian Banking Association in December 2019.
It is unclear, however, how alternative payment methods for gambling will be regulated under the new legislation. The implementation of the credit card ban is not expected to be immediate, with a six-month transition period for customers, game developers, and payment providers to adapt.
While the ban applies domestically, offshore gambling platforms remain beyond the reach of Australian regulators. This raises concerns about players migrating to less regulated sites, which could potentially increase the risks associated with gambling.
The Interactive Gambling Amendment Bill 2023 is part of a broader reform under the Interactive Gambling Act, which also includes bans on gambling advertising and anti-money laundering reforms. The new legislation is a significant step towards strengthening Australia's regulatory framework and reducing gambling-related harms.
- Despite the Australian government's initiative to regulate online casinos in Germany and other gambling-related businesses, offshore gambling platforms remain unreachable for Australian regulators.
- The Interactive Gambling Amendment Bill 2023, which includes a ban on gambling payments made via credit cards and cryptocurrencies, is aimed at protecting consumers and aligning with the policies and legislation in politics and general news.
- The lowering of the anti-money laundering (AML) customer due diligence (CDD) exemption thresholds for gambling providers from $10,000 to $5,000 is part of the Interactive Gambling Act's reform, which seeks to strengthen Australia's regulatory framework and reduce gambling-related harms.
- The implementation of the ban on credit card gambling payments, included in the Interactive Gambling Amendment Bill 2023, is not immediate, with a six-month transition period for customers, game developers, and payment providers to adapt.
