Australia enacted a ban on using credit cards for online gambling in June of the previous year, hoping to curb the escalating problem of gambling-related harm. The intention was clear: prevent individuals from borrowing money to fuel their betting habits. However, recent research reveals a surprising truth – the policy, while effective in one narrow sense, largely missed its mark.
The ban didn’t deter those most vulnerable to the dangers of gambling. Data from the e61 Institute shows that credit cards were already a relatively minor component of online sports betting before the rule change. At the beginning of 2024, only around 2% of credit card accounts were actively used for gambling transactions.
This low usage stemmed from existing financial realities. Gambling transactions using credit cards were typically treated as cash advances, incurring substantial fees and higher interest rates – a natural deterrent for many. Consequently, those who *did* gamble with credit cards often possessed a stronger financial footing than the average gambler.
Interestingly, the policy did impact the gambling habits of those credit card users. Online gambling expenditure within this group decreased by approximately AUD $50 every two weeks. A significant one-third of these individuals ceased gambling altogether, showing no recorded activity for six weeks following the ban’s implementation.
However, researchers Aditya Maitra and Matthew Maltman emphasize that these changes were driven by inconvenience, not genuine financial constraint. The decline in participation was most pronounced among those making small bets – less than $10 per week – and showed no correlation with indicators of financial hardship like limited cash flow or existing debt.
The data suggests the policy addressed the wrong problem. The focus wasn’t on those most at risk of experiencing serious harm from gambling. The e61 Institute points to alternative strategies, such as stricter regulation of poker machines, where the most significant harms appear to be concentrated.
Currently, Australia is debating further measures to mitigate gambling-related harm. These include strengthening age verification processes to protect young people and increasing social pressure to reduce the pervasive advertising of gambling services.
