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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A new study by Paysafe has revealed that consumers, although tightening their purses otherwise, are looking to continue spending on online sports wagers and in-game purchases.

This means that gaming companies that have digital exposure may not feel the pinch of an immediate economic downturn as online spending and experiences would continue to remain a preferred option for consumers.

There is also sufficient data to rebut doomsayers who expect inflation to bite into casino resorts’ purses may be blowing the issue out of proportion.

Consumers Prioritize Experiences and Stay-at-Home Entertainment

Streaming services and stay-at-home entertainment are beginning to gather momentum, Paysafe notes, considering the previous years that were marked by the onset of the COVID-19 pandemic, and the subsequent recovery from it.

Although gambling operators have turned mostly a profit, and many states around the United States have posted record-breaking revenue across sports gambling and online gambling, the land-based sector is still flagging. This though has enabled consumers to sustain their online spending habits driving sports betting up, and not all brick-and-mortar venues are affected equally.

Not all is bleak in the land-based sector, and Paysafe estimates that businesses which offer strong experiences over physical goods would do well. This is to say gaming companies should in theory perform better even in the land-based sector, as they create multi-tiered experiences that are not directly tied only to their gaming floors.

Land-Based Venues More Resilient Than the Economy Suggests

Places such as Las Vegas and Atlantic City are built around a 360-degree experience, which means that these brick-and-mortar properties are well-equipped to satisfy demand even if in-person entertainment’s prospects seem to be dimming on paper, edged sideways by home entertainment.

Some 51% of consumers prefer experiences, the report said. In other words, gaming may be a hook, but casino companies pull in a lot of revenue from lodging, food, and beverage, and not least the customary performances by world-known artists. When it comes to sports gambling, though, it is evident that consumers are not going to budge and would instead stick to their spending habits despite increasing costs of living.

The survey’s findings are reflected in the estimates of several analysts who have remained bullish on the stocks of popular gaming and entertainment companies, including Las Vegas Sands, MGM Resorts International, Caesars Entertainment, and Penn Entertainment.

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Q: Are gambling companies overall getting better at protecting consumers?

What we have seen over the past few years is more investment and resources being applied to player protection. Yet we know there is still a long way to go. In 2021, we conducted a survey with YouGov, and it was clear that the public felt gambling businesses were not playing their part – only 28% of respondents agreed with the statement that gambling businesses were doing enough to play safely. The industry needs to keep using its resources to find new ways to mitigate harm.

Q: What is the one common thing that most gambling companies are guilty of not doing to protect customers?

We know that there are many ways operators can still improve their processes to prevent gambling harm from occurring. One key area we think GamCare and consumer protection there could be significant improvements made in is affordability checks – having robust processes at the point of registration that set deposit limits and are based on accurate data checks on a customer’s income. This is where operators can really make an impact in beginning to protect their customers

Q: What are GamCare’s main initiatives for the up-and-coming year?

One area we’re very concerned about is the rising cost of living and the implications this may have for people who rely on our services. To this end, we have established a new Money Guidance Service that will provide guidance to those who have been financially impacted by gambling.

The service will work with people to establish day-to-day ways to improve their finances and work closely with those impacted by someone else’s gambling, to help them understand their options. Any support that gives improved access to dedicated financial guidance in the current climate will only enhance the current treatment offer and support longer-term recovery.

We are also looking at how we can reach more people and encourage them to get help, particularly digitally. Since the pandemic, we have seen a shift in the way that people reach out to the National Gambling Helpline, with more choosing our live chat function over physically calling on the phone. We want to continue reducing the barriers for people to start their recovery journey with us and are focussing on how we can achieve that through new digital means.

Q: What is the one thing that GamCare would like to see the Gambling Commission pay more attention to?

We know that the Commission has been looking closely into the guidance around customer interaction and we welcome this focus. It’s so important that customer-facing staff feel confident in supporting their customers and know how to respond when someone is experiencing harm, including the right places to refer people to such as the National Gambling Helpline.

The guidance sets out the need for ‘hot transfers’ to support those customers who are escalated internally where gambling harms are identified, which we see as a great step. The more focus we give here, the more we can ensure people are receiving the right level of support at the right time.

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Getting the right balance between player freedom and consumer protection arguably remains the holy grail of the gambling industry. I’ve always felt that having what I call a ‘healthy tension’ between regulators and industry is needed to ensure industry continues to raise standards in responsible and safer gambling whilst allowing industry freedoms to innovate and grow sustainably.

This balancing act between sustainable growth and what the economists call the negative externalities of industry affects every industry, not just gambling. As a sector we are still learning about the pathways towards gambling harms and therefore, unsurprisingly, different jurisdictions are exploring different philosophies and approaches to consumer protection.

Here in the UK, player affordability and the single customer view have been key topics in the past two years and approaches and solutions are evolving. Other jurisdictions have taken more one-size-fits-all approaches, with stake limits for online slots (eg Germany), and more player-centric approaches, such as enforcing time and spend limits for each online player session (eg Spain), Striking the balance whilst some jurisdictions have kept monopolies in place (eg Norway), citing consumer protection as the main reason for this approach.

Whilst much attention in recent years has been centred on the iGaming sector, land-based gambling remains a major part of the industry and is embracing these solutions and services. It can be challenging in a land-based environment to innovate, however if the sector is to grow sustainably, it needs to continue to evolve its solutions, particularly leveraging technology further to protect customers.

Regardless of the different approaches, responsible or safer gambling remains a major strategic factor in building regulated and sustainable gambling markets globally. It also highlights the challenges and complexities for multi-national organizations operating in regulated markets as no two jurisdictions are the same.

This complexity, together with the continued pressure to raise standards in consumer protection, has seen considerable investment in safer and responsible gambling capabilities in recent years and there has never before been the range and depth of GAMING professional solutions and services that operators and suppliers can leverage to help ‘raise the bar’.

The ICE conference provides an excellent opportunity for all stakeholders, including legislators, regulators, academics, welfare groups and industry to get together to build strategies for using evidence and technology to strengthen consumer protection. The contributors to this safer gambling supplement are all working hard to develop insights, solutions and services to help the industry better protect players. There are many others and this week is a great opportunity to engage with them and see how you can work together to build a more sustainable industry.

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