It was an interesting last week for everybody who works in the gambling sector. With the new nationwide ban on credit cards implemented for online gambling, the entire ecosystem was in a state of worry as to how this will impact the functioning of the gambling industry in Australia and its impact on other nations. But before we take that and share our opinions, a small refresher on what exactly happened.
The New Regulation
There has been a nationwide prohibition on the use of credit cards under the Australia’s Interactive Gambling Amendment Bill 2023.
The Bill was passed in November 2023 a subset and modification of the
Interactive Gambling Act 2001. While credit card use has been banned from casinos and physical venues for years under the Interactive Gambling Act 2001, the aim of the Bill is the prohibition of credit cards and wallets, as payment methods for online wagering services.
This comes at a time when Visa and Mastercard have already been imposing higher security for the gambling industry.
Effective from 11 June, consumers across all six territorial states are forbidden from using credit cards and similar services for online gambling transactions.
But Why The Ban?
The Australian government officials state, “Australians should not be gambling with money they do not have.” This statement is self explanatory that the giovernmnet is in no modd for their population to spend the money that they will be borrowing. This leads to the economy taking a big toll and impacts the wellbeing of the people.
While other industry sources states the main reason behind this regulation is to curtail gambling addiction. The nature of credit cards is such that it allows users to gamble with borrowed money and that might lead to instigating addiction.
The Governing Body
The Australian Communications and Media Authority (ACMA), an independent Commonwealth statutory authority has been assigned the duty to monitor and scrutinize this new rule. The organisation’s day to day role is to regulate communications and media services in Australia and making them the monitoring authority is an interesting decision.
Repercussions for a Gambling operator
If the operator fails to comply with this regulation, ACMA has the right to issue fines of AU$235,000 (€150,000) for individual breaches of credit card gambling.
The Commonwealth government also has made it compulsory for online gambling operators to do a Pre-verification ID before players access website content and add funds to their accounts.
On top of it, the operator also has to send monthly statements to players outlining wins and losses.
Implications for Online Gaming Businesses
- Adjustment of Payment Options – Online gaming businesses will need to adapt to this regulatory change by adjusting their payment options. Alternatives such as debit cards, bank transfers, e-wallets, and prepaid cards will become more prominent, hence need more importance.
- Enhanced Compliance Requirements – Compliance with the new regulation will require online gambling operators to update their systems and processes. This may involve modifications to their payment gateways, enhanced Bank Identification Number (BIN) Identity measures, and increased monitoring to ensure that credit card transactions are not being processed inadvertently
- Potential Revenue Impact – While the intention behind the regulation is to promote responsible gambling, it could lead to a short-term decline in revenue for online gaming businesses
TickleCharge's Role in Supporting the Transition
The ban on credit card usage for online gambling in Australia marks a significant shift in the industry. While it presents challenges, it also offers an opportunity for online gaming businesses to promote responsible gambling and build a more sustainable future.
At TickleCharge, we are here to help you navigate these changes and continue providing a safe payment experience for your players.
Talk to us if you are looking for
- Integration of Alternative Payment Methods – Our platform supports a wide range of payment options, including debit cards, local payments, and e-wallets, to ensure seamless transactions for your customers
- Fraud Protection – We offer strong fraud protection tools to keep your payment processing clean
- Customer Support – Our dedicated support team is available to assist you and your customers with any questions or concerns regarding the new payment processes
