Disappointment: Credit Card Ban in Australia Has Little Impact

Research shows that one of the Albanese government’s main gambling reforms, a ban on using credit cards for online betting, has had little effect on Australia’s heaviest gamblers.

The measure, introduced in 2024, forced most gamblers to switch their payment methods to transaction accounts, but dedicated bettors found ways around it, according to a report by the e61 Institute. 

While the reform made placing bets slightly less convenient, most gamblers continued betting with their own money, without relying on credit.

The New Process, “Inconvenient” for Casual Bettors 

The study found that the average credit card user’s fortnightly betting spend dropped from just over $200 across card and transaction accounts to $0 on cards, but remained around $150 through transaction accounts. 

The report also noted ongoing loopholes, such as using credit cards for cash advances, depositing into PayPal, or taking out personal loans. Most high-spending gamblers didn’t need to exploit these options, as they already had sufficient funds to keep wagering uninterrupted.

“The minority who did reduce their spending were usually casual betters who quit simply because the new process was inconvenient,” said report co-author Adit Maitra. He added, “It’s not super clear that [the ban] has restricted borrowing to gamble in any sense.”

Responsible Wagering Australia, the industry peak body, did not comment on whether the ban affected membership or revenue, though its chief executive officer, Kai Cantwell, said the sector strongly supported the measure.

The ban has successfully prevented large credit card debts, but it hasn’t reduced spending on debit cards, and it hasn’t blocked credit spending on lotteries or, indirectly, poker machines, often linked to the most significant harm. 

“Hitting that section of the market might have more of an effect on reducing harms than hitting some other sections,” Maitra said.

More Questions Rising

The report triggered further questions regarding the actual effectiveness of the government’s reforms aimed at gambling. For example, the BetStop self-exclusion register has just 30,000 active users, even though government research estimates 400,000 Australians are high-risk gamblers. Public awareness of the program is low, and wagering providers have not actively promoted it.

Other rules, like monthly activity statements for customers, have been ignored. In November, the Northern Territory regulator fined Sportsbet $313,140 for failing to send statements to thousands of customers over 18 months. A spokesperson said the company self-reported the issue and promptly corrected it.

Gambling expert Lauren Levin said the findings highlight the need for stronger protections. “This government does a lot of bragging about everything it has done for gambling consumer protection, but those measures were only ever designed to be first steps,” she said.