Australia has introduced a new measure banning the use of credit cards for online gambling, aiming to ensure that players only gamble with their own money. This significant change has been in the works since 2021, with Responsible Wagering Australia (RWA) and its members playing a crucial role in advocating for and developing this ban alongside the Commonwealth Government and the financial services industry.

Industry Support for the Ban

Responsible Wagering Australia CEO Kai Cantwell expressed the importance of this measure, emphasizing that it helps individuals manage their gambling more effectively. “This is an important measure to protect customers, making it easier for people to stay in control of their own gambling behaviour,” Mr. Cantwell stated. He highlighted that this ban complements the existing suite of safer gambling tools provided by RWA members.

Cantwell also pointed out the need for uniform consumer protection measures across all forms of gambling. “RWA and its members support the extension of this measure to all forms of gambling that have been exempted from the ban such as lotteries and keno. If consumer protection measures aren’t consistent across all forms of gambling, it will incentivize vulnerable Australians to move to less-regulated types of gambling, where they are more at risk of harm.”

Enhanced Consumer Protection Tools

RWA members are committed to ensuring that gambling is conducted safely and responsibly. They offer a variety of tools to help users manage their gambling activities more effectively. Many of these tools have been integrated into the National Consumer Protection Framework (NCPF) by the Commonwealth Government.

Cantwell noted the significance of the NCPF in maintaining a safe gambling environment. “The NCPF is expected to be evaluated shortly and we look forward to engaging in this process to ensure that consumer protection tools are fit-for-purpose and support a safe and sustainable regulated gambling environment,” he added.

This credit card ban marks a crucial step in protecting Australian consumers from the potential harms of gambling by preventing the use of borrowed money for such activities. It underscores the commitment of both the government and the industry to foster a safer and more regulated gambling environment.

Source: “Australia Enforces Credit Card Ban for Online Gambling”, European Gaming, June 12, 2024.

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The Swedish Trade Association for Online Gambling (BOS) has formally submitted its statement to the Ministry of Finance regarding the memorandum titled “A new ban on gambling on credit,” which proposes a ban on the use of credit cards for gambling. BOS has firmly rejected this proposal, citing significant negative consequences for channelization.

Gustaf Hoffstedt, Secretary General of BOS, explained the association’s stance [pdf], emphasizing that such a ban would likely push consumers towards unlicensed and illegal gambling platforms, which currently constitute almost half of the Swedish online casino market. Hoffstedt stated, “In the name of consumer protection, Sweden should not add new restrictions on consumers that still place their bets on the legal gambling market.”

Alternative Proposal Suggested by BOS

If the government decides to proceed with the ban, BOS proposes an alternative approach: instead of placing the obligation on gambling operators, the responsibility should be on credit card issuers. Under this model, the Swedish Financial Supervisory Authority (Finansinspektionen) would supervise credit card issuers to ensure they do not process payments for gambling companies, including those operating illegally or without a license.

BOS argues that this approach would more effectively prevent the use of credit cards for gambling while avoiding further burdens on licensed operators. Hoffstedt pointed out that licensed gambling operators are already heavily restricted and additional limitations could drive more consumers towards the unlicensed market, undermining consumer protection goals.

BOS’s Rationale for Rejection

BOS has consistently supported measures to prevent gambling on credit. However, the association draws a line at banning credit cards, which are a common and regulated form of payment. “At least one credit check is conducted before issuing a credit card,” Hoffstedt noted, “and in most cases, credit is repaid monthly, accruing no interest.”

The association also highlighted that credit card usage for gambling is on the decline, with many consumers shifting to other payment methods like Swish. Those who do use credit cards for gambling are typically older with more organized finances, and the prevalence of problem gambling among them is relatively low.

The biggest challenge, according to BOS, is the prevalence of unlicensed gambling, a view shared by Finance Market Minister Niklas Wykman. Hoffstedt stressed that restrictive measures against licensed operators, such as the proposed credit card ban, combined with inadequate countermeasures against unlicensed operators, have led to a significant outflow from the legal gambling market. “This must end,” he said, emphasizing that enhancing the attractiveness of the licensed market is crucial for effective regulation.

Concerns Over Government’s Approach

BOS expressed concern over the government’s tendency to exempt state-owned or controlled gambling operators from new restrictions, creating an uneven playing field. The association fears that this might undermine competitive neutrality and consumer confidence.

In conclusion, Hoffstedt reiterated BOS’s position that the proposal to ban credit cards for gambling should be rejected. He emphasized that effective regulation should include measures to counteract unlicensed gambling while supporting the legal market.

“Sweden’s largest online casino operator is likely unlicensed,” Hoffstedt noted, underscoring the need for balanced regulation. BOS believes that imposing the ban on credit card issuers rather than gambling operators is a more effective and fair approach to achieving the intended consumer protection goals.

Source: Press release: BOS rejects the proposal A new ban on gambling on credit. BOS. May 23, 2024.

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Sports betting powerhouse DraftKings is under fire in Massachusetts over depositing violations. The operator is now facing an adjudicatory hearing in the state.

As it turns out, DraftKings had accidentally allowed its users to use out-of-state credit cards to fuel their accounts, in violation of Massachusetts’ gambling rules. For reference, no gambling operators in the state can accept credit cards as a payment method.

DraftKings self-reported the issue to the Massachusetts Gaming Commission (MGC) in May this year. According to the operator, the mistake had allowed customers to bet with credit cards from March 10.

As a result, DraftKings implemented a tool that prevents the use of credit cards on its platform. However, it wasn’t until July 13 that DraftKings finally got the measure working properly. As a result, a total of 218 players used credit cards to place a total of 242 bets totaling $83,663.92 between March and July.

DraftKings told the MGC that the incident was due to an internal miscommunication. The operator also attributed its failure to get the necessary software working to the persistence of these alleged miscommunications.

The company explained that it had to introduce changes to three internal functions before being able to get the credit card prohibition underway. These included changes to its financial platform, account platform and sportsbook product.

MGC commissioner Eileen O’Brien commented on the matter, saying that she believes DraftKings’ negligence is egregious. O’Brien added that “this needs to be an adjudicatory hearing.” The other commissioners agreed. MGC commissioners said that this is the first instance of such a severe credit card-related violation. Because of that, the authority seeks to prioritize the matter.

This is not the only trouble DraftKings faces in The Bay State as it recently came under fire over a misleading promotion. The operator had promised a non-redeemable $1,000 bonus but had failed to clearly communicate that players would need to deposit $5,000 and wager $25,000 within 90 days to be eligible to receive the bonus.

Because of that, the company was hit with a class-action lawsuit led by the Public Health Advocacy Institute.

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The poker tournament series that takes place at different locations all across the US, The Moneymaker Tour, has announced a new and exciting partnership with Texas Card House in Houston.

The newly inked deal will allow the Tour which strives to help players “have their own ordinary to extraordinary moments” to host its first scheduled event in 2024 in Texas. 

The Lone Star State will, therefore, help the Moneymaker Tour kickstart the new year with 12 days packed with action at the tables, between January 10 and January 22. 

Over $500,000 in Prize Money Announced

Texas Card House Houston, which is one of the locations of Texas Card House, the state’s first private poker club, will host no less than 12 trophy events.

The buy-ins will start at $150 and go as high as $1,500. The Moneymaker Tour, which was created by 2003 World Series of Poker Champion and ACR Team Pro, Chris Moneymaker, along with Moneymaker executive manager Tony Burns, has also announced over $500,000 in guarantees across the series. 

The Main Event will take place between January 16 – January 22 and will feature a buy-in of $1,500 and a guaranteed prize pool of $250,000. The event’s final table will be streamed live on January 22.

The Moneymaker Tour’s executive manager, Tony Burns, expressed excitement for being able to step into the new year “in a new state with a new partner”. 

He also discusses Texas’ transformation into a state that offers “great action” while expressing their eagerness to have their “first-ever stop in Houston” on January 10.

The Partnership, “a Key Highlight” for Texas Cas House

At the same time, Texas Card House’s chief operating officer, Victor Leone, called the new partnership “a key highlight” in their continuous efforts to provide premium experiences for poker players in the state. 

Leone added that their community should expect “a dynamic and thrilling tournament series” that will put “high-stakes play and intense competition synonymous with Chris Moneymaker” on full display. 

The Moneymaker Tour was inaugurated at the Poker Room at Palm Beach Kennel Club in May 2023 and has been growing in popularity ever since. 

Its third series was held at the Hard Rock Casino in Cincinnati a few months ago, in September, and it was the first series to draw a $1 million guaranteed Main Event. 

The event gathered 788 participants and was won by Joseph Bakun who took home over $208,000.

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The Australian House of Representatives, the lower house of the country’s parliament, has passed a bill that would ban the use of credit cards for online gambling. The bill is called “The Interactive Gambling Amendment (Credit and Other Measures) Bill 2023” and it was submitted for approval in September.

The bill would also ban the use of other credit-related products and digital currencies for gambling online in Australia. The bill did produce a significant debate in the Australian parliament, with members of the lower house introducing several amendments. Eventually the amendments were not approved, and the bill passed on November 14 after having received support from both major parties. The debate is not over yet, though, as the bill will move forward to the Australian Senate, the upper house of parliament.

More Measures Included

The bill does not only deal with the use of credit cards for gambling online, it also includes other important measures such as significant fines for casino operators that fail to properly enforce the ban. These fines can go all the way up to 234,750 Australian dollars, which would roughly convert into almost 150,000 U.S. dollars.

The bill would also give the Australian Communications and Media Authority (ACMA) new powers, including enforcing penalty provisions and issuing penalties for those that break the law. There will be a six-month transition period before the bill would come into full effect, enough time for operators, payment providers and players to adjust to the new rules.

Before submitting this bill to parliament the Australian government consulted with several stakeholders, including harm reduction advocates, online casino and sports betting operators and banking payment organizations.

In Line with Land-Based Gambling

The move would eventually lead to Australia’s online gambling sector getting in line with land-based operations, where gambling with credit cards is already banned. The debate regarding applying this rule to online gambling has been going on for several years.

In November 2021, recommendations to this effect were made by the parliamentary joint committee on corporations and financial services. Before that, in December 2019, the Australian Banking Association (ABA) held a consultation on the use of credit cards in gambling. Some banks decided to act before the government and put in place their own prohibition on using credit cards to gamble. Bank Australia for instance announced in October 2021 that all account holders would no longer be able to use its credit cards for gambling.

In the spring of 2020 such a ban was introduced in Great Britain, and that led to an increase in calls for the Australian government to settle the issue. Online casino and sports betting operators which are members of Responsible Wagering Australia, including Bet365, Betfair and Entain, expressed their support for such a ban.

Source: “Australia lower house passes credit card gambling ban bill“. iGaming Business. November 14, 2023.

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Sweden’s gambling regulator, the Spelinspektionen, has published a consultation response relating to SOU 2023:38, saying that gambling companies should not encourage their players to loan money. However, the regulator is not convinced that further measures are needed at this moment.

SOU 2023:38 is a series of proposed measures that concern the extension of the credit ban in the Gambling Act. Under Swedish law, licensed operators and gambling agents in Sweden are prohibited from promoting loans to their players as a way for them to continue playing. Sweden, however, is exploring opportunities for extending the measure and prohibiting the use of credit cards in online gambling.

The authority noted that the current laws already prohibit licensees from promoting credits to their players. Still, the Spelinspektionen agreed that the prohibition should be communicated more clearly.

However, the authority noted that, since the current law already prohibits licensees from promoting credits to players, an extension of the measure seems unnecessary. Despite that, the regulator plans to continue investigating the efficiency of the credit card bans in Norway and the United Kingdom.

For reference, around 60% of the 50 licensed operators in Sweden offer accept credit cards as a payment option.

The Spelinspektionen also commented on the proposed introduction of a system for debt and credit registers (Skri register) that would provide additional insights into the matter.

Other News about the Swedish Market

In other news, the Spelinspektionen just handed a huge fine to Videoslots, claiming that the operator has violated Sweden’s AML and CTF rules. The failings caused the regulator to issue a penalty fee of $809,300 because of the seriousness of the operator’s violations.

For reference, the gambling authority has been investigating Videoslots’ business since 2021 to confirm whether the company secured sufficient knowledge of its customers. Unfortunately, the Spelinspektionen learned that the gambling company’s efforts were lacking and that its negligence may have facilitated money laundering and terrorism financing.

Several days ago, the Spelinspektionen published a report on the ongoing review of how collaboration with the Finansinspektionen (Financial Supervisory Authority) can strengthen the efforts against illegal gambling.

This came after an earlier measure proposed allocating SEK 10.8 million (around $970,000) to the Spelinspektionen’s 2024 budget and another SEK 4.5 million ($400,000) to the Finansinspektionen in 2024, helping the two regulators crack down on unlicensed gambling.

The two authorities are currently exploring opportunities for blocking payments to and from offshore companies.

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Australian operator The Lottery Corporation has requested to be omitted from the upcoming gambling reform. Regulatory changes will prevent bettors from using credit cards for gambling, significantly changing the country’s gaming landscape. The company argues that lotteries have a low harm profile, insisting lottery tickets and scratch cards should be exempt from the Interactive Gambling Amendment Bill.

Australia Presses On with Its Gambling Reforms

Earlier this year, the Australian Government proposed several updates to the Interactive Gambling Act 2001 to prohibit users from using credit cards for gambling transactions. The proposed amendment is part of a broader effort to promote responsible gambling. Notably, The Lottery Corporation’s former parent company, Tabcorp, supports this amendment, agreeing it is vital in combating rising gambling addiction rates.

Recent updates to ID requirements for online gamblers marked the first significant milestone towards a fairer and more responsible gambling industry. The measure aims to mitigate underage gambling and alleviate some cases of gambling harm, protecting consumers from unscrupulous operators. Leading politicians have expressed their determination to push on with reforms and update regulations to navigate rising challenges.

The Australian Commonwealth Government’s push towards more responsible gambling coincides with similar measures across most local jurisdictions. New South Wales (NSW) recently pledged $100 million in funding for initiatives and services to reduce the industry’s harmful effects on communities. Such initiatives remain instrumental in reversing the country’s rising problem gambling rates by enforcing more effective regulations.

A Possible Exemption Could Have Far-Reaching Consequences

Lottery Corporation CEO Sue van der Merwe approached the Senate to request an exemption for lotteries from the upcoming ban on online gambling using credit cards and digital wallets. The company argues that lotteries have a significantly lower harm profile than other forms of gambling, relying more on their social and recreational aspects. 

Sue van der Merwe’s request likely reflects The Lottery Corporation’s fears that stricter regulations may impact the company’s bottom line. However, the measure enjoys broad industry support. Responsible Wagering Australia, representing some of the country’s top operators like Sportsbet and Ladbrokes, also released a statement in favor of the changes. 

We share the Government’s view that wagering customers should only be able to conduct their wagering activity with their own clear funds.

Responsible Wagering Australia statement

The Lottery Corporation’s call for an exemption from the impending credit card gambling ban highlights the ongoing debate about Australia’s gambling regulations. As discussions around responsible gambling continue, the decision of whether to grant this exemption will be closely watched by various industry stakeholders and may significantly impact future policies.

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Little did Drake know that a seemingly ordinary livestream would turn into a hilarious viral sensation, leaving fans in stitches and social media buzzing with laughter.

Drake’s Livestream Fiasco Creates Internet Frenzy

Drake, known for his generosity, had already captured the hearts of fans and content creators alike by gifting a remarkable 20,000 Kick subscriptions to over 100 creators before the incident occurred. His goodwill was widely praised, setting the stage for a highly anticipated livestream experience. 

As the livestream progressed, with Drake engaging in lively conversations and showcasing his unique charm, an unexpected moment stole the spotlight. In an attempt to further spread his generosity, Drake decided to gift 100 subscriptions to a streamer named Daisy. However, what followed was a minor hiccup that would lead to a major eruption of laughter and amusement across the internet.

As Drake’s associate eagerly tried to process the transaction, an unforeseen turn of events unfolded. To the astonishment of everyone involved, Drake’s credit card was declined. The reason behind the declined transaction remains a mystery, although speculation suggests it could have been triggered by the bank’s detection of potentially suspicious activity.

In a comically high-pitched tone, Drake couldn’t help but exclaim, “Embarrassing! Yeah, what just happened?!” The unexpected combination of embarrassment and humor struck a chord with fans, who quickly shared the video far and wide, turning it into a viral sensation.

Drake’s Viral Livestream Mishap Inspires a Deluge of Memes and Jokes

The incident became a playground for creativity, with fans swiftly crafting memes and jokes inspired by Drake’s reaction. Social media platforms were flooded with witty adaptations, adding to the collective amusement of the situation. 

Despite the temporary blush of embarrassment, Drake’s first Kick livestream can still be deemed a resounding success. The mishap only served to enhance the overall enjoyment of the livestream, leaving fans eagerly awaiting future streams with heightened anticipation. 

As the video continues to circulate and the laughter persists, Drake’s presence on the Kick platform is expected to draw even more attention. Fans are eager to witness future surprises and entertaining moments from the rapper, knowing that each livestream holds the potential for both planned delights and unexpected hilarity.At the same time, Drake has been criticized for promoting gambling during his live streams. This of course is no surprise as he is an avid bettor and a brand ambassador for the crypto betting platform Stake.com.

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Australia has no online casinos licensed in the country even though federal law allows states and territories to license and regulate internet slots and table games. However, home and mobile sports betting is licensed for punters there.

According to the country’s primary banking trade organization, there’s a big gap between financial protections online and on land so the Australian Banking Association (ABA) is asking the government to ban the use of credit cards at online sports betting sites.

The request comes decades after credit cards were banned for gambling at the land-based sportsbooks and casinos there. The licensed online gambling industry did not even exist at the time land-based credit card gambling was prohibited but is now worth an estimated A$50 billion a year.

Credit Cards Already Banned for Land-based Gambling

The ABA’s CEO, Anna Bligh asks: “Why should it be possible to do something in the virtual world that is prohibited in the real world? Every pub with poker machines, every TAB and every trackside bookie already implemented this 23 years ago.”

Bligh wonders if gambling, as a product “is this something we should be providing credit for given what’s happening to our customers?”

According to a report in the Guardian, banks are not on a moral crusade with the initiative but instead are looking out for their own business interests. That said, the association is quite aware of the damage undisciplined gamblers can do to themselves very quickly with potential long-term negative consequences.

“This is just a product that is not suitable for credit,” said Bligh. “You can accrue a very, very large amount of debt in an incredibly short period of time and have nothing to show for it.

“Banks have seen the harm that is being done and they are very conscious of their responsibility as lenders to ask [hard questions].

The initiative would tend to lend itself more to ideation than implementation due to the way merchant category codes work. The international merchant category code (MCC) that has been used for online gambling transactions since soon after the US changed its payment processor rules for online gambling with the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) can also be assigned to transactions involving charities that fundraise by selling lottery tickets.

MCCs are 4-digit numbers listed under the international standard ISO 18245 which currently doesn’t have a code for lottery tickets sold primarily for charity fundraising. In order to create one, advocates would need to apply through ISO/TC 68, Technical Committee 68 on Banking, Securities, and other Financial Services in Geneva, Switzerland. However, changes to ISOs such as adding a new MCC, are usually not entertained for industries generating less than $10m in revenues.

The ABA doesn’t seem interested in paying for changes through the Geneva process, indicating that gambling operators should have to deal with and pay for compliance on their own after a grace period to give them time to adjust.

Licensed Operator Body Supports Ban

Responsible Wagering Australia is an independent body for wagering service providers based in Australia. RWA members include well-known names such as bet365, Betfair, Entain, PointsBet, Sportsbet, and Unibet.

A spokesperson for the group said: “The RWA and its members have been at the forefront of the work to implement a credit card ban – having led the discussions with the banking industry to determine the technical solutions, and delivered them to the government. We cannot speak for other non-member gambling companies.”

While offshore casinos can run credit card gambling transactions through a form of potential money laundering by assigning “the wrong code” to deposit transactions, a few Australian banks have already banned their branded credit cards from being used for gambling transactions, which presumably disallows the purchase of lottery tickets sold for charity fundraising with a credit card. Bank Australia, Bank of Queensland, Citibank, and Suncorp will no longer process MCC 7995.

MPs Sharkie and Wilkie are each preparing legislation to address the issue as well as to introduce suspicious transaction reports to authorities with Rebekha Sharkie’s private member bill focused on banning online credit card gambling and Andrew Wilkie’s bill focused on proceeds of crimes and suspicious transaction report obligations.

Sharkie also wants operators to be required to inform bettors of ongoing losses prior to accepting further bets.

Source: Australian banks urge Albanese government to ban use of credit cards for online gambling, The Guardian, March 26, 2023

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A 23-year-old Norwalk, Connecticut resident surrendered to police earlier this week after his alleged participation in an elaborate gambling scam. The man, identified as Sebastian Echeverri, allegedly win nearly $50,000 by cheating in a virtual casino operation and using multiple online accounts that belonged to him, a report released by Patch reveals.

The 23-year-old man was charged with cheating, as well as first-degree larceny. After surrendering to police authorities Wednesday, he was released on a $50,000 bond. Echeverri is scheduled to appear in Bridgeport Superior Court next month, on April 20, 2023.

The young man reportedly was able to defraud the online casino out of at least $47,000 through an elaborate scam. Working as a shuffler for a live casino, he allegedly rigged the cards or memorized them, before engaging in betting activities via multiple DraftKings accounts that belonged to him.

At least one of the three uncovered accounts that allegedly belonged to Echeverri was noticed for “suspicious gaming activity” between July 2022 and December 2022. It is believed that the young man used unfair advantage for at least 26 separate gaming sessions.

Manipulating Cards for Advantageous Bets

The charges against Echeverri and the uncovered scam come after an investigation was launched into the illicit activity. The scam itself, state police claim, was uncovered by Evolution, the famous gaming company that provides online live casino games hosting for operators such as FanDuel and DraftKings. This online segment of iGaming content has been continuously gaining popularity and many operators have engaged with such offering that delivers immersive gambling entertainment via live action.

“Investigators reviewed video footage from Evolution relative to the games suspected to have been manipulated by Echeverri. The videos appeared to depict Echeverri actively examining the sequence of the cards on which he would subsequently place bets,“

explains a statement released by state police

The scam was reportedly uncovered by Evolution during its usual monitoring processes. At the company, Echeverri was a shuffler, a job that involved the preparation, including the shuffling of cards before a dealer uses them for a live stream. According to police authorities, the accounts belonging to the young man “demonstrated a pattern of placing abnormally high bets after Echeverri had handled the cards.”

Given his role, he had access to cards that are used in live streams, allowing him to memorize the flow of cards. In some cases, Echeverri allegedly even tampered with the sequence of cards, allowing him to know how the game would play out. This granted him the option to take advantage of games and bets through his online accounts.

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