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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The Swedish Gambling Authority (Spelinspektionen) has formally endorsed FI2024/00442, a government measure that seeks to prohibit the use of credit cards for gambling. This proposed ban has been under discussion for several months and has now garnered the regulator’s official support.

Camilla Rosenberg, director general of Spelinspektionen, stated that the authority believes the ban on gambling with credit should apply universally across all gambling forms. Additionally, the authority suggested the need for the ability to grant exceptions in certain cases.

In its official statement, Spelinspektionen affirmed its support for the proposal. However, the Swedish trade association BOS criticized the measure, arguing that it could severely impact the legal gambling marke. Despite this opposition, the regulator acknowledged that there is no conclusive evidence on how the measure would affect operators who sell tickets digitally.

One concern raised was the ambiguity regarding how the ban would impact players using account credits for wagers. Given that credits linked to a bank account are also considered account credits, Spelinspektionen noted that this could imply licensees must ensure that credit limits are not utilized for payments made with debit cards.

However, the original proposal does not mandate licensees to investigate such matters. Therefore, Spelinspektionen concluded that it does not interpret the current wording as requiring gambling companies to verify whether users’ debit cards have a credit limit.

Implementing a ban on credit card gambling would place Sweden in line with other modern regulated markets such as Australia, Ireland, Norway, and the United Kingdom.

Spelinspektionen concluded that the proposal outlined in the memorandum is consistent with the regulator’s recommendations.

The Regulator Continues Market Oversight

In other developments, Spelinspektionen recently banned another skins gambling website. The company, WiseAvant OÜ, was found to be providing games of chance to Swedish customers without the necessary license.

This action follows a series of crackdowns by the authority on unlicensed operators. A few months ago, Spelinspektionen took similar actions against three companies: Galaktika NV, Newera Frozen PTE Limited, and Aprodi Ltd, two of which also offered skins gambling.

In related news, ATG’s chief executive officer, Hans Lord Skarplöth, recently suggested that the government might reconsider its proposed Gross Gaming Revenue (GGR) tax hike. The proposed tax increase has been controversial, with BOS warning that it could benefit the black market if implemented.

Source: “Spelinspektionen Approves Ban on Credit Cards in Gambling”. Gambling News. May 22, 2024.

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Bally’s is trying to increase the gambling credit limit at its two properties in Rhode Island from $50,000 to $100,000 in order to stay competitive and attract high-stakes players. Not surprisingly, this move has sparked concerns despite the fact that Bally’s has secured the support of Senate President Dominick Ruggerio.

Bally’s Representative Tackles Concerns Over Rhode Island Casino Credit Proposal

Bally’s representative, Elizabeth Suever, addressed concerns during a Senate Committee on Special Legislation meeting. Suever noted that the proposal’s goal is to cater only to gamblers capable of repayment, reported The Providence Journal. 

Notably, casinos in Connecticut and Massachusetts are operating without such credit limits so the proposal is trying to level casino offerings in Rhode Island with the neighboring competition. The state of Rhode Island is quite dependent on gambling tax revenue, which amounts to $428.8 million annually.

However, opponents have expressed their confusion about the proposal being introduced at the end of the legislative session and the urgency surrounding it.  A spokesperson for Ruggerio confirmed that the legislation was crafted upon Bally’s request to counter competition from Massachusetts casinos.

Nonetheless, there is one stipulation in the proposal that has raised lawmakers’ eyebrows. The bill is going to affect the state’s Department of Business Regulation‘s authority to change Bally’s operating agreement without legislative approval. 

Rhode Island Proposal Aims to Attract High-Rollers

The proposal proponents argue that the bill will affect only a small group of high-rollers. It is going to reduce the need for large cash transactions for such players and, thus, make Bally’s casinos more attractive to them. 

Answering concerns about financial oversight and potentially higher gambling debt, the bill’s supporters note that players are going to be subject to rigorous scrutiny such as credit checks, identification verification, and tracking of their gaming history across local casinos. 

However, there is no detailed information available regarding the current number of players with $50,000 credit limits.

Additionally, the proposed legislation is going to change various aspects of Rhode Island’s lottery and casino operations. For example, Bally’s debt ratio shall have to be revised and the method for calculating promotional points shall also be changed.

This, in turn, will impact the state’s revenue share. The main challenge ahead of legislators will be to strike a balance between responsible gaming and keeping the competitive edge of Rhode Island casinos against neighboring states. The fate of the proposal will have implications for economic revenue and consumer behavior in the gambling sector.

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Brazil, one of the largest regulated iGaming markets in the world, has set new rules which ban the use of credit cards and crypto currencies for payments related to gambling and sports betting.

The new rules were published by the Regulatory Policy of the Prizes and Betting Secretariat and the Ministry of Finance on 18 April in the national Official Diary of the Union, in the form of Normative Ordinance Number 615.

This new set of rules represents the beginning of the first stage of a four-part regulatory campaign that was presented last week by the country’s Ministry of Finance. This campaign will ultimately implement Bill 3,626, which was ratified by the Brazilian president in December 2023. The first stage is expected to be completed by the end of April and it will establish new rules regarding payments, technical aspects and security regulations.

Normative Ordinance Number 615 has established several new rules, with the first and most important being that iGaming operators in Brazil can no longer accept payments from credit cards, payments in crypto currencies or in cash. Moreover, payments in the form of payment slips or cheques are also prohibited.

All bets, withdrawals and payouts can be executed only through electronic transfers between the operators and their customers’ accounts. Moreover, the respective accounts have to be previously authorized by the Central Bank of Brazil. Operators will also have the obligation to deny payments from accounts not registered with the respective customer or from third parties.

Intermediaries between players and operators are strictly prohibited, but certain institutions authorized by the Central Bank are allowed to offer accounts on behalf of iGaming operators in some situations, for example to allow players to receive a prize that they won.

Winning Bets Paid Out in Less Than 2 Hours

Normative Ordinance Number 615 has also set a time limit for receiving prize payments on winning bets, operators must deliver that into the player’s account in at most 120 minutes.

The new rules also obligate operators to set up a virtual account for players in which they will be able to analyze details regarding their betting habits. This is expected to allow players to have a better understanding of their financial and betting information and make better decisions when it comes to managing their gameplay.

The respective virtual accounts will display the respective player’s betting history over the previous three years, with key aspects such as the total value of open bets and their financial balance on display.

Operators will also be in charge of managing their liquidity risk, including establishing a financial reserve of at least 5 million Brazilian Real, which would convert in around 950,000 U.S. dollars.

Source: “Credit cards and crypto banned under Brazil payment rules“. iGaming Business. April 18, 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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A lot is changing when it comes to Australian gambling law, and new legislation has just been passed. The use of credit cards as a payment method for placing online bets will be prohibited from now on, as the Australian Federal Parliament decided.

Important measure

Kai Cantwell, the CEO of Responsible Wagering Australia, supports this decision. He thinks that the country needs this decision since the residents will be allowed to gamble only with the money they actually have on their cards.

Cantwell commented: “This is an important measure to protect customers and their loved ones, making it easier for people to stay in control of their own gambling behavior. It will complement the existing offering of safer gambling account management tools by RWA members to customers to help them stay in control of their betting.”

Lotteries and keno issue

He added that it was disappointing that some kinds of games, for example, lotteries and keno, were excluded from this ban since the lotteries are the most popular type of gambling in the country, especially in people from lower socioeconomic groups.

Only in 2020 and 2021 did citizens lose more than $3.2 billion playing these two types of games, according to the Australian Gambling Statistics. When online keno was legalized in Victoria, these numbers increased even further, and in 2022 and 2023, the losses increased by more than 400%.

There are other parts of the gambling law that lotteries are excluded from. There is also a National Self Exclusion Register, Betstop, so the Australians who already have excluded themselves from other forms of online gambling still have the opportunity to gamble up to $10.000 online by playing lotteries.

Cantwell added: “To effectively reduce gambling harm, consumer protection measures must exist across all forms of gambling. Otherwise, those at risk of harm will just move from one form of gambling to another less regulated type.”

Strict regulations

The industry is talking about the potential credit card ban from 2021. The RWA members collaborate with the federal government and financial institutions to deliver the best possible solutions when it comes to credit card bans and online gambling regulations. The institutions will continue to work hard on this, and the ban is supposed to be implemented in all online casinos in Australia within six months.

This is the newest regulation in the Australian market, but not the only one. Other prohibitions include banning external signage, reducing the cash-input limit, reducing the cap on machine entitlements, and others.

Source: Narayan, Niji, “Australian Parliament Passes Legislation Banning Online Credit Card Betting”. European Gaming. December 7. 2023.

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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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