Announcement date
13 September 2023
Link to announcement
Legislation to ban credit cards for online gambling
Problem being addressed
The use of credit cards in online gambling platforms and services is causing significant harm to businesses and individuals.
Proposal
The proposal seeks to minimising harms associated with online gambling by amending Interactive Gambling Act 2001 to prohibit the use of credit cards, credit related products (including digital wallets) and digital currency (such as cryptocurrency) as payment methods for licensed Australian interactive wagering services, or other methods determined by the Minister by way of a (disallowable) legislative instrument.
Assessed Impact Analysis outcome
Independent review and supporting addendum
Assessment comments
OIA notes the Department of Infrastructure, Transport, Regional Development, Communications and the Arts has certified the Parliamentary Joint Committee on Corporations and Financial services review as equivalent to an Impact Analysis consistent with the Government’s requirements. The Office of Impact Analysis (OIA) does not assess the quality of independent reviews and IA-like documents used in lieu of an IA but does assess whether the options analysed in the independent review are relevant to the regulatory proposal. The OIA assessed that the options analysed in the independent review were sufficiently relevant to the regulatory proposal.
In addition, DITRDCA prepared a supporting addendum setting out the likely regulatory burden of the proposal and the consultation undertaken to establish an overall estimate of costs and benefits for the proposal. OIA has not assessed this addendum but notes it reflects the best endeavours of the department to establish and quantify these costs.
Regulatory burden
The Department considers the initial costs for wagering providers associated with implementing the ban through BIN blocking to range between $50,000 to $1.5 million (depending on the size of the business), and additional ongoing costs likely to range between $50,000 and $500,000 over 10 years.