Australia’s The Lottery Corporation has formally requested an exemption to a new credit card ban that could hit the nation shortly and is forecasted to impact the business from the ground up. The potential risk was mostly associated with credit card usage and online gambling activity, according to the committee. It also highlighted the fact that this did not apply to lottery tickets and scratch card purchases. However, in the case of gamblers who sign up at online casinos using CasinoShortlist.net, it is worth noting that there are a number of providers offering online lotto and scratchies too. Thus, the distinction may not be as black and white as one might assume.
Standing at the brink of the impending Interactive Gambling Amendment Bill, which seeks to prevent players from funding gambling sites using credit cards, lottery games and scratch cards are pleading for exclusion given the “low harm nature [and the] non-continuous low spend” associated with these activities, according to Sue Van der Merwe, MD and CEO of The Lottery Corporation.
Waves of Change
In response to this, The Lottery Corporation called upon the Senate to exempt lotteries from this reform by still allowing players to continue purchasing scratchies with their credit card. The Lottery Corporation was the first operator to voice opposition, with other companies submitting their support at a later stage. The new legislation will also seek to ban online casinos from accepting credit card payments, while real-life casinos and poker games will also not accept credit cards.
According to the Australian Banking Association, the policy represents a welcome change that will seek to bring online and offline gambling in line with one another. At this stage, it’s useful to keep in mind that there are still another number of other points that the government is still considering, including a potential advertising ban, along with another potential ban on media, sports, and racing institutions.
According to Ms Van der Merwe, a credit card ban exemption would avoid any “negative impacts” on retailers and newsagents, which is further reflected in the support received from other recognized identities such as Financial Counselling Australia amongst others.
She went on to note that reports have shown that “lotteries have a lower harm profile”, while once again recommending a ban exemption for “online gambling service providers and other gaming operators” that are currently able to accept credit card payments via e-wallets.
Cushioning the Blow
According to Ms Van der Merwe, The Lottery Corporation is able to reduce gambling risks amongst its players while continuing to promote and encourage safe and responsible gambling. In line with this ethos, the chief executive presented the company’s ‘Self Exclusion Policy’, which would allow players to self-exclude for at least 108 days if required.
Ms Van der Merwe also made reference to the ripple effects this reform could bring about to the business, including The Lottery Corporation points of sale, which currently make up over 60% of lottery turnovers as another example. She also quoted a number of reports and studies stating that the correlation between credit card usage and lottery ticket and/or scratchies purchases presented minimal potential harm. She ended her submission by urging “the committee to support the bill as it currently stands”.
The Interactive Gambling Amendment Bill 2023 came into force last month in Australia and could see operators facing fines of up to $151,000 for not complying with the credit card ban, including online casinos.
