New Rule Uses Bank Identification Numbers (BIN) To Stop Credit Card Purchases

By Matt Speakman,
Betting Expert at online-gambling.com

Matt Speakman Betting Expert at online-gambling.com

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Last updated: May 6, 2023

To prevent people from facing financial hardship as a result of problem gambling, the Australian government has declared its intention to outlaw the use of credit cards in online gambling. The new rule, which will go into force in the coming months, uses Bank Identification Numbers (BIN) to stop credit card purchases made in online gambling. The government will collaborate closely with the gambling sector to ensure that the ban is strictly enacted.

Additional authority will be given to the Australian Communications and Media Authority to enforce the ban, and it will set up payment systems to monitor and regulate any credit card transactions that online gaming providers try to process.

Lotteries Are Exempt from the New Legislation

Despite research suggesting that lottery purchases rank top among gambling in Australia, where consumers would spend AUD 174 billion ($115 billion) on gambling in 2020, lotteries will be protected from the new legislation. Les Bernal, the national director of the Stop Predatory Gambling Organization in the US, underlined that lotteries may be addicting and that over the next eight years, Americans would spend $500 billion on lottery-related items, according to his study. Despite this, the Australian government opposes the financial burden that can be brought on by problem gambling while supporting the gaming industry. Additionally, many Australians do not use gambling mitigation tools to prevent further hardship.

According to Michelle Rowland, consumers shouldn’t be betting with money they do not have, Minister for Communications, while Amanda Rishworth, Minister for Families and Social Services, states that the new policy is an important step in reducing the harmful effects of gambling.

Proponent of Gaming Reform Welcomes the Restriction to Reduce Problem Gambling

The proponent of gaming reform and independent lawmaker Andrew Wilkie welcomes the restriction and calls on the government to enact it as quickly as feasible. Wilkie is certain that the new regulation will lessen the damaging effects of problem gambling. The new regulations must be followed by casino operators, though, in order for them to be effective. By enabling Chinese VIPs to use credit cards for gambling and faking hotel bills so that high rollers may use plastic to buy chips, Crown and Star Entertainment have already discovered methods to circumvent laws.

There are other ways to get around the new rules, even though these ones are not practical in the online gambling sector. An operator could set up a phony eCommerce site that collects funds, which can subsequently be transferred to accounts for online gambling. Another option is to ask the credit card company for a cash advance, which the user is then free to use anyway they see fit.

These and other issues will be discussed in the next meetings with the gaming sector, and the government will make sure that gaming operators abide by the rules. With the new regulations, consumers will not only be shielded from financial hardship but also from gambling addiction. It is an essential step in reducing the harmful effects of problem gambling, and the government’s enforcement efforts will be closely watched.