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Drawing the Line: The Debate Over Credit Card Bans & Lottery Exemptions in Australian Online Gambling Legislation

Amidst an ongoing and robust national discourse surrounding online gambling, the Australian Lottery Corporation finds itself in a precarious position, advocating for a unique exemption from the forthcoming legislation aimed at prohibiting the use of credit cards for online betting. As the government deliberates on introducing a comprehensive ban to mitigate the risks associated with online gambling and protect vulnerable individuals from debt. The Lottery Corporation presents a divergent viewpoint, making a case for the ostensibly “low harm” nature of lotteries.

Home / Drawing the Line: The Debate Over Credit Card Bans & Lottery Exemptions in Australian Online Gambling Legislation

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Proposed Gambling Reforms

In a bid to curtail the detrimental impacts of online casino wagering, the Australian government has introduced legislation aimed at banning the use of credit cards for online gambling. This initiative mirrors the regulatory framework for in-venue gambling, offering a consistent approach to gambling across various platforms.

This alignment of online and in-venue gambling rules has garnered widespread support from various quarters, including industry stakeholders and the public, as it’s seen as a crucial step in preventing individuals from falling into debt through gambling.

The Case for Lotteries: A Low-Harm Alternative

However, the Lottery Corporation stands as a notable dissenting voice in this discussion. They argue that lotteries inherently possess a “low harm nature”, making them significantly less risky compared to other gambling forms. The corporation underscores the modest average weekly spend per player—$11.75—as evidence of the recreational nature of lotteries.

According to the Lottery Corporation, an exemption is not only justified but necessary to prevent undue financial strain on retailers and newsagents deriving substantial revenue from lottery sales.

Sue van der Merwe, the Chief Executive of the Lottery Corporation, emphasises that this exemption is vital for protecting retailers from adverse economic impacts. The corporation believes that the characteristics of lotteries—infrequent, non-continuous, and low spend—warrant a different regulatory approach, given their lower risk profile.

Voices of Dissent: The Opposition to Exemption

This perspective, however, faces staunch opposition. Financial Counselling Australia, anti-gambling advocates, and some industry competitors vehemently disagree with the exemption plea. They highlight the potential harm that even “low-risk” gambling forms can inflict on individuals struggling with gambling addiction. Critics of the exemption warn that it could inadvertently provide a loophole for addicted gamblers to exploit, exacerbating financial hardships among vulnerable populations.

In Support of Inclusivity: Sportsbet’s Standpoint

Sportsbet, a major player in Australia’s online sports gambling scene, has also entered the fray, expressing concern over the proposed carve-out for lotteries. They advocate for an inclusive approach to the credit card ban, encompassing all forms of online gambling without exception. The company’s submission pointedly articulates the potential harm arising from the permissible spending levels and frequency of lottery draws, making a case for their inclusion in the credit card ban.

The Road Ahead

As the debate continues to unfold, the government is in the process of carefully considering the diverse array of recommendations and viewpoints that have emerged during the inquiry. The decision will undoubtedly be a product of careful deliberation, taking into account the various facets of the issue—from retailer impact to consumer protection. The unfolding legislation is a testament to the complexities involved in regulating online gambling, underscoring the need for a nuanced and balanced approach to policy-making in this arena.

Written by

Nathan Harper

Nathan Harper


Nathan is one of the most knowledgeable casino writers we've ever seen. He has seen everything there is to see within the online casino industry and therefore specializes in anything we throw at him.

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