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Australian Banking Association is looking at the use of credit cards for gambling

This news, from the ABA website:

Today the Australian Banking Association has released a consultation paper on the use of credit cards for gambling.

Banks have introduced a range of initiatives to help customers better manage their financial arrangements and mitigate harms related to problem gambling – technology solutions such as tools to help customers track their spending, customer directed blocks, trained customer support teams, referrals to support services.

The ABA is seeking views from the public on the place of a credit card and its use for gambling. Currently credit cards can be used when gambling online, however when in a gambling venue of a licenced venue or casino patrons cannot use credit cards or make ATM cash advance on their credit card.

CEO of the Australian Banking Association Anna Bligh said that banks had an important role to play in helping tackle the issue of problem gambling and were seeking feedback from the community.

“For many Australians gambling is a form of entertainment and recreation, however for some it can become a problem that potentially has devastating consequence for the individual and their family,” Ms Bligh said.

“As an industry we are currently assessing a number of options to help tackle problem gambling.

“We are seeking feedback across the community on a number of important questions, which will then help banks as they each consider further reform on this issue,” she said.

The ABA is seeking community views on the following questions:

  1. What are the risks and concerns associated with gambling with credit cards?
  2. Should the use of credit cards for gambling be restricted or prohibited?
  3. If so, should the restriction or prohibition apply to all forms of gambling?
  4. What are the potential consequences of prohibiting or restricting the use of credit cards for gambling?
  5. Should there be a transition period if banks choose to implement changes relating to credit cards?

For a copy of the consultation paper click here. Submissions on the topic are due by March 4, 2020. Submissions can be emailed to submissions@ausbanking.org.au. The ABA requests that submissions make use of empirical evidence as far as possible. A survey option is also available on the ABA website here.

For this to work, banks will either need access to what’s in a shopping basket to assess whether it is approved, or they will require POS software through which cards they issue are used to undertake such basket assessment – if this project of theirs moves forward.

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  1. ken

    Just like in NZ, no credit cards for gambling/ lottos only chq or sav accounts.

    1 likes

  2. Mark Fletcher

    Yes, Ken. The challenge here in Australia is that credit cards have been an acceptable payment so taking shoppers and retailers off that will have a cost.

    0 likes

  3. Graeme Day

    Gambling is fast becoming the “New” smoking hazard for the average Australian and what the GOVTS. answer is Tax it out of existence or change the rules of play to make it more difficult however to ban it would cost votes, instead we agree to it as long as we the Govt benefits one way or another

    1 likes

  4. Amanda

    It was only approved a few years ago, and many customers still think it is illegal. I don’t think customers would be too upset about it. Certain credit cards charge you a cash advance fee if you use their card to gamble online.

    I think it is a good step forward morally for society.

    It sure would impact online gambling more so than retail.

    3 likes

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