Research Finds Credit Card Ban Makes Small Dents in Online Gambling Spend

This research evaluates the impact of the June 2024 Australian Government ban on credit card use for online gambling, which mainly affects online betting providers and aims to reduce harm by removing access to borrowed funds for wagering.

Why Was This Change Made?

The goal was simple, to stop people from gambling with borrowed money and reduce harm. But did it work? A recent study looked at early impacts and offers useful insights.

What the Research Found

The study analysed household data and bank transactions for the six weeks after the ban. While the long-term effects are still unknown, here’s what we know so far:

• Low Credit Card Use Before the Ban: By early 2024, only 2 per cent of credit card accounts were used for gambling. Credit cards were already a minor payment method for online betting.
• Spending Dropped Slightly: For those affected, online gambling spend fell by about $50 per fortnight, mainly because fewer people gambled.
• Behavioural Change, Not Financial Stress: About one-third of impacted gamblers stopped completely, mostly because of the hassle of changing payment methods, not because they lacked funds.
• High-Risk Gamblers Adapted: Most switched to debit or transaction accounts. The ban mainly inconvenienced casual gamblers.
• No Big Wellbeing Boost (Yet): There’s little evidence of major improvements in financial wellbeing or spending habits in the short term.
• Workarounds Exist: People can still transfer money from credit cards to other accounts, so the ban doesn’t fully prevent gambling with borrowed funds.

Impact on Clubs:

For NSW clubs, the direct impact is minimal. Credit card use for online gambling was already low and declining. The ban simply aligns online rules with long-standing in-venue restrictions for gaming machines.

Key Takeaways for Club:

• Stay Focused on Gaming Machine Harm: Online sports betting remains a minor contributor to gambling harm compared to gaming machines. Continue to prioritise harm minimisation measures for in-venue play.
• Leverage Behavioural Insights: Small frictions, such as mandatory breaks, cooling-off periods, or payment restrictions, could influence behaviour without heavy-handed bans.
• Promote Responsible Gambling: Share your club’s commitment to harm minimisation and educate members about existing safeguards.
• Stay Informed: While the credit card ban has minimal direct impact on clubs, it signals a broader regulatory focus on payment methods and harm reduction. Stay informed.

If you have any questions, please contact ClubASSIST on 1300 730 001 or [email protected].