Credit cards are among the more popular options for funding accounts at online casinos and online sportsbooks. Visa and MasterCard payments are allowed by some banks, but others currently prohibit the use of credit cards for online gambling. Recently, the Australian Banking Association revealed that it is backing a proposal to ban credit card use for gambling. Surprisingly, Australian sportsbook Sportsbet also backs the proposal, saying it cannot support a “buy now, pay later” scheme.
ABA and Sportsbet Both Call For Ban on Credit Cards for Gambling
Aussies well know the difficulties of depositing at online casinos. This is because of the numerous restrictions in place by some banks and payment processors. Responsible Wagering Australia is pushing a proposal to ban the use of credit cards for online gambling. The RWA claims that players are at an increased risk of developing gambling-related harm due to using credit cards for gambling.
Multiple organisations have come forward recently in support of this initiative. The first is the Australian Banking Association. The ABA is in favour of consistent regulations concerning credit cards. They prefer players move their accounts to debit card systems. They can use money from checking or other bank accounts to fund gambling. This way they don’t risk putting themselves in debt to gamble.
A surprise addition to the coalition supporting the RWA is Sportsbet. The Aussie sportsbook joined those supporting the RWA proposal. In a statement from Sportsbet, “We strongly support the Responsible Wagering Australia position that a credit card ban should be implemented in wagering, and that ‘buy now pay later’ be treated as credit and similarly banned from gambling services.
While BNPL may be suitable for low-risk in other sectors, we firmly believe that wagering via this payment method is high-risk and should be prohibited.”
For those unfamiliar, Buy Now Pay Later is used by many companies as a form of credit. You’ll often see this method of credit used for furniture stores and other retail stores in lieu of credit cards or other forms of credit.
AMA Claims Government Not Keeping Pace With Growth of Online Gambling
The calls for bans on credit cards for gambling come at a time that the Australian Medical Association is calling out the government on its lack of action to address problem gambling. The AMA recently claimed there is little evidence that regulations adequately combat online problem gambling.
Their concerns stem from the increase in online gambling, especially the increase in the number of gambling platforms since the start of the pandemic. They believe that the response from the government has not kept up with the pace of change in the iGaming industry over the last decade.
Sportsbet Offering AI Solution to Assist With Problem Gambling
Sportsbet is not just calling for a ban on credit cards. They are also offering aid in identifying and assisting problem gamblers. Sportsbet is working on what it calls “real-time intervention” for its platform. The technology will be AI-driven and will work to predict the deposit activity of players. The software will help Sportsbet decide whether to limit players’ deposits or betting limits. It will also help by offering self-help resources and other tools to prevent gambling harm. Sportsbet has also announced that if the technology proves successful, it will share it with others in the industry.
Sportsbet is the first major platform to step forward in support of the RWA’s measure. It is unlikely to be the last. Considering the amount of pressure being put upon live gambling establishments, online gambling companies may step forward to show they are actively looking to support players.