Aussie Banks Against Proposed Online Gambling Restrictions

Visa and several Australian banks have launched a preemptive campaign in an attempt to stop the Australian government from passing legislation that would attempt to clamp down on online gambling through restrictions on payment processing.

According to the Australian Bankers’ Association, such restrictions would be difficult to accurately enforce. One fear is that online shopping payments might also be blocked on some occasions. In addition, some have said that such regulations might make Australia less competitive in international markets.

''[If] Australia was identified as a jurisdiction where payment obligations may not be fulfilled in a certain and timely manner, it is possible that merchants and online service providers will refuse to accept business and payments from customers designated as originating from Australia,'' the Western Advocate quoted Steven Munchenberg, CEO of the ABA, as saying.

Such restrictions would be similar in scope to those currently in place in the United States of America, where the Unlawful Internet Gambling Enforcement Act (UIGEA) has had a fairly strong impact on internet gambling in the USA. While some gambling companies left the US market in response to the law, many more have been forced out due to the increased enforcement of the law in 2011. Most notably, the “Black Friday” incident in April targeted major online poker sites like PokerStars, Full Tilt Poker and Absolute Poker.

At the moment, online gambling is technically illegal in Australia – but only from the side of operators, who are not legally allowed to accept payments from Australian players according to the Interactive Gambling Act. However, over 90% of online gambling sites currently accept Australian players, and Australians spent nearly $1 billion at online casino, poker and bingo sites last year.

The proposed reforms come on the heels of the government’s proposal to place pre-commitment technology on most poker machines. While the move has been largely popular among the Australian public, and would exclude machines with a $1 maximum bet or less, it has been heavily opposed by the clubs industry.