The Australian Lottery Corporation has made a request for an exemption from the upcoming gambling reform that aims to prohibit individuals from using credit cards for gambling purposes. Citing the perceived low harm nature of lotteries, the Lottery Corporation has approached the Senate, seeking to ensure that customers can continue to purchase scratch cards and lottery tickets using credit cards.
Background on Proposed Gambling Reform:
Earlier this year, the Australian Government proposed amendments to the Interactive Gambling Act 2001 to restrict the use of credit cards for wagering. The Lottery Corporation stands as the sole gambling entity opposing this decision, while its former parent company, Tabcorp, supports the proposed amendment as a measure to promote responsible gambling.
The Lottery Corporation’s Position:
Sue van der Merwe, CEO of the Lottery Corporation, emphasized that the inquiry committee’s findings recognized the relatively lower harm profile associated with lotteries. As a result, the committee recommended exempting lotteries from the ban on online gambling service providers accepting credit card payments, including via digital wallets.
Support for the Proposed Amendment:
Sportsbet expressed its support for the proposed amendment, aligning with the government’s stance that wagering customers should only use their clear funds for betting activities. The company advocates for the elimination of the possibility for customers to use credit cards, issued by licensed entities, to fund their wagering, whether directly or through intermediaries such as digital wallets or pre-paid cards.
The Australian Lottery Corporation’s request for an exemption from the credit card gambling ban reflects ongoing discussions surrounding responsible gambling practices in the country. While some stakeholders, like Tabcorp, endorse measures to restrict credit card use in gambling, the Lottery Corporation argues for a differentiated approach based on the perceived lower risk associated with lotteries. This debate underscores the importance of balancing consumer protection with the interests of various segments within the gambling industry.