How the gambling credit ban works
A ban on the use of credit for gambling in Australia has been introduced to reduce the risk of gambling addiction and prevent betting debts. This restriction is enshrined in the Interactive Gambling Act 2001 (IGA), as well as in regional state and territory regulations, and applies to all licensed online casinos and betting platforms.
1. The essence of the ban
Players cannot use credit cards, credit lines or any loans to top up their online casino account.
Deposits through payment systems that disguise credit transactions as debit are prohibited.
The ban covers both direct transactions and intermediaries, including electronic wallets, if they are replenished from credit sources.
2. Who concerns
All licensed online operators working with Australian players.
Banks and payment providers required to block gambling-related MCC transactions.
Players who previously used credit cards to bet are now required to switch to debit or alternative methods.
3. Exceptions
Some lotteries and charity draws, regulated separately, can accept credit payments (depending on the state).
Transactions that do not fall under the "interactive gambling" category may be processed by credit cards, but not for casinos.
4. Prohibition implementation mechanism
4. 1 At operator level
The licensed casino must remove the credit card entry option.
Payment processing systems on the operator's side should automatically reject such transactions.
4. 2 At the bank and payment system level
Financial institutions apply MCC (Merchant Category Code) filters to block gambling-related credit payments.
E-wallets registered in Australia are required to block top-ups from credit cards if the funds go to gambling.
5. Reasons for the ban
Preventing a situation where players are playing for money they don't have.
Decrease in the number of bankruptcy cases related to gambling debts.
Increasing player responsibility and reducing impulse betting.
6. Implications for players
The need to use debit cards, bank transfers, PayID, POLi, BPAY or cryptocurrency (if allowed).
Possible slowdown of the deposit process when switching to new methods.
Stricter controls by banks and operators.
7. Liability of operators for violation
Fines of up to millions of dollars, depending on the volume of violations.
License suspension or revocation.
Mandatory reimbursement of improperly accepted credit funds to players.
Conclusion:
1. The essence of the ban
Players cannot use credit cards, credit lines or any loans to top up their online casino account.
Deposits through payment systems that disguise credit transactions as debit are prohibited.
The ban covers both direct transactions and intermediaries, including electronic wallets, if they are replenished from credit sources.
2. Who concerns
All licensed online operators working with Australian players.
Banks and payment providers required to block gambling-related MCC transactions.
Players who previously used credit cards to bet are now required to switch to debit or alternative methods.
3. Exceptions
Some lotteries and charity draws, regulated separately, can accept credit payments (depending on the state).
Transactions that do not fall under the "interactive gambling" category may be processed by credit cards, but not for casinos.
4. Prohibition implementation mechanism
4. 1 At operator level
The licensed casino must remove the credit card entry option.
Payment processing systems on the operator's side should automatically reject such transactions.
4. 2 At the bank and payment system level
Financial institutions apply MCC (Merchant Category Code) filters to block gambling-related credit payments.
E-wallets registered in Australia are required to block top-ups from credit cards if the funds go to gambling.
5. Reasons for the ban
Preventing a situation where players are playing for money they don't have.
Decrease in the number of bankruptcy cases related to gambling debts.
Increasing player responsibility and reducing impulse betting.
6. Implications for players
The need to use debit cards, bank transfers, PayID, POLi, BPAY or cryptocurrency (if allowed).
Possible slowdown of the deposit process when switching to new methods.
Stricter controls by banks and operators.
7. Liability of operators for violation
Fines of up to millions of dollars, depending on the volume of violations.
License suspension or revocation.
Mandatory reimbursement of improperly accepted credit funds to players.
Conclusion:
- Australia's gambling credit ban is a mandatory measure for all licensed operators to reduce debt load and protect gamblers. It is implemented through locks at the level of casinos, banks and payment systems, which makes the use of credit funds for betting almost impossible within the legal market.
