As more countries look for ways to protect players from racking up gambling debts, there is a move to ban credit card deposits. This restriction is already active in the United Kingdom and is a topic of debate across Europe. Now Australia faces the same challenging question, should credit-based gambling be banned?

 The Gambling Industry Is Taking Point

The Australian Medical Association (AMA) voiced its concerns over the current state of gambling harm in the country.

“The AMA is very concerned by the increased prevalence of online gambling platforms and the resultant harms to public health and mental and emotional wellbeing.”

In an unexpected response, local gambling operator, Sportsbet, voiced their support for a government review of the region’s gambling laws and raised the issue of credit card and loan-based wagers, saying:

“We strongly support the Responsible Wagering Australia position that a credit card ban should be implemented in wagering, and that buy now pay later be treated as credit and similarly banned from gambling services.”

According to industry research platforms, Buy Now Pay Later (BNPL) services are rife in Australia, with nearly 6 million registered accounts in the country. This figure is increasing by 10% year on year.

One report postulated that BNPL users could have as many as twenty active loans in any calendar year. Where this service was initially intended to assist low-income families during difficult financial times, it has become a common way to fund gambling in Australia.

New Zealand Reveals Cash Pokies Problem

While their Australian brethren are looking for ways to limit credit-based gambling, the authorities in New South Wales have uncovered a loophole that allows billions to be laundered through pokie machines across New Zealand.

The investigation found that many of the pokies installed in bars, restaurants, and gaming arcades from 2020 onwards allow punters to load up to NZ$5,000 into the machine in cash. It gets even worse when older devices are checked, as the load limit is an astounding NZ$9,999.

These bad actors can withdraw the now clean cash after playing a single NZ$5 spin, making it an effortless and cost-effective way for criminals to launder money. Cash business operators also use it to avoid income taxes, as gambling and lottery "winnings" do not need to be declared income, making it tax-free!